August 19, 2024
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: Akiko Kanno
Director and CFO
TEL: +81-3-5425-1340

Notice Concerning Acquisition of Real Estate Beneficiary Interests in Trustand Lease Contract with New TenantsStar Asia Investment Management Co., Ltd. (the “Asset Manager”), to which Star Asia Investment Corporation (“SAR”)
entrusts the management of its assets, announces today of its decision to acquire real estate beneficiary interests intrust for four real estate properties (hereinafter referred to as “Assets to be Acquired” and the acquisition of such assets
to be referred to as the “Acquisition”) and lease those real estate properties, as described below.
Furthermore, the broker of the acquisition of the Assets to be Acquired and the counterparties under the leaseagreements related to the Assets to be Acquired fall under interested party, etc. as defined in Article 201 Paragraph 1 of
the Act on Investment Trusts and Investment Corporations (hereinafter referred to as the "Investment Trusts Act") and
Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations (hereinafterreferred to as the "Enforcement Order of the Investment Trusts Act"), and they also fall under the category of interested
party prescribed in the “Rules on Transactions with Interested Parties” which are the voluntary rules set forth by the
Asset Manager for preventing conflict of interests regarding its management of SAR’s assets. Upon deciding on thebrokerage of the acquisition of the Assets to be Acquired and signing of the lease agreements related to the Assets to
be Acquired, the Asset Manager has conducted deliberations and approval processes in accordance with laws andregulations and such rules.
1.

Overview of the Assets to be Acquired

Type

Real
EstateProperties
etc.

Asset
type

Propertyno.
(Note 1)Hotel

HTL-17

Hotel

Hotel
Hotel

Property name

KOKO HOTEL Tsukiji
Ginza
KOKO HOTELHTL-18Residence Asakusa
Kappabashi
KOKO HOTELHTL-19Residence Asakusa
Tawaramachi
KOKO HOTEL Osaka
HTL-20Shinsaibashi
Total (4 properties)

Location

Plannedacquisition
price(million yen)
(Note 2)Chuo-ku,Tokyo

17,000

Taito-ku,
Tokyo

4,300

Taito-ku,
Tokyo

5,900

Chuo-ku,
Osaka-shi, Osaka

7,500

Plannedacquisition
dateAugust 30,
2024

34,700(Note 1) As for “Property no.”, please refer to “Reference Material 5 The terms used in the table of Description of Assets to be Acquired” below.
(Note 2) “Planned acquisition price” indicates the planned sale and purchase price stated in the sale and purchase agreements with the sellers for the Assets to
be Acquired, rounded to the nearest million yen. The planned sale and purchase price does not include consumption tax, local consumption tax andvarious expenses required for the acquisition.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

1(1) Signing date(2) Planned acquisition date(delivery and settlement date)(3) Sellers(4) Acquisition financing(5) Settlement method(6) Presence or absence of
broker: August 19, 2024
: August 30, 2024
: Please refer to “4. Planned Seller Profile” below.
: Proceeds from the issuance of new investment units through public
offering (Primary offering) (Note 3) for which resolution was made at
the Board of Directors meeting of SAR held today, planned new
borrowings (Note 4) and cash on hand etc.
: Payment of entire amount on planned acquisition date
: Presence
Please refer to “7. Overview of Broker” below.

(Note 3) For further details, please refer to “Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units” announced today.
(Note 4) For further details, please refer to “Notice Concerning Debt Financing (Green Loans)” announced today.

Of the Assets to be Acquired, SAR has acquired “Building-Housing Energy-Efficiency Labeling System (BELS)” Evaluation
and Certification (Note). Details are as follows.
Asset
type
Hotel
Hotel

Propertyno.
HTL-17
HTL-19Property nameLocation

KOKO HOTEL Tsukiji Ginza
KOKO HOTEL Residence Asakusa Tawaramachi

Chuo-ku, Tokyo
Taito-ku, Tokyo

Certification
rating★★★★
★★★

(Note) Outline of BELS: Under the Act on the Improvement of Energy Consumption Performance of Buildings (Act No.53 of 2015; including its amendments) (“Building
Energy Efficiency Act”), real estate business operators are required to make efforts to display the energy-saving performance of buildings. BELS is a system in which
third-party institutions evaluate the energy-saving performance of buildings based on the evaluation standards set by the Ministry of Land, Infrastructure, Transport
and Tourism, and the certification rating is given on a 7-point scale.
For the details of BELS, please refer to the following website.
https://www.hyoukakyoukai.or.jp/bels/bels.html (Japanese only)2.

Reason for the Acquisition and the Leasing
The Acquisition is a substantial progress toward the mid-term target of “Asset size of 300 billion yen by 2026,” which
was set in the Mid-term Plan (announced in March 2021), by realizing the promotion of a continuous external growthstrategy through asset allocation that leverages the strengths of a diversified REIT, and by increasing capital throughpublic offering for four consecutive years. Following the acquisition of properties through the public offering in 2023,
we will acquire properties with high asset value and high potential for internal growth. The Assets to be Acquired, thefour hotels, are properties for which the Asset Manager has preferential negotiating rights through sponsor support andwill be acquired by utilizing such preferential negotiating rights.
Through the Acquisition, SAR’s asset size (Note 1) will expand to 276.5 billion yen, and at the same time, the average
portfolio building age of the entire portfolio will become shorter to 20.0 years and will enhance the portfolio. Goingforward, SAR will continue to aim to achieve the asset-size objective in the Mid-term Plan by utilizing sponsor support
as well as leveraging on the Asset Manager’s unique network.
With respect to the Assets to be Acquired, the 4 hotel properties, affiliate companies of Polaris Holdings Co., Ltd(hereinafter referred to as “Polaris Group”, including Polaris Holdings Co., Ltd.), which have a track record of operating
47 buildings and 8,205 rooms within Star Asia Group (as of the end of March 2024, including future planned operations)are expected to be the hotel operators, and the acquisition is expected to promote efficient hotel operations by theirskillful area management leveraged by their hotel management track record. The forms of contracts of the Assets to be
Acquired are all “fixed rent + floating rent” and the forms have advantage in reflecting directly to the rents as to therelatively high GOP margin realized by Polaris Group’s efficient hotel operation.
Following is a summary of the forms of contracts.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

2

Fixed rents + Floating rents
Propertyno.

Property nameLocation

Monthly fixed rents=
expected annual GOP(Note 2)/12 × 30%

floating rents(in thousands of yen)

HTL-17
HTL-18
HTL-19
HTL-20

KOKO HOTEL
Tsukiji Ginza
KOKO HOTEL Residence
Asakusa Kappabashi
KOKO HOTEL Residence
Asakusa Tawaramachi
KOKO HOTEL Osaka
Shinsaibashi
Total

Chuo-ku, Tokyo

22,700

Taito-ku, Tokyo

6,700

Taito-ku, Tokyo

8,900

Chuo-ku, Osaka-shi,
Osaka

11,700

Based onperformance ofeach month:
GOP × 85% - fixed
rents

50,000(Note 1) “Asset Size” is calculated based on the (planned) acquisition prices (however, for properties which SAR has assumed from former Sakura Sogo REIT
Investment Corporation due to the merger, the calculation is based on the acceptance price basis), and includes the securities (the preferred equity
securities and the mezzanine loan debts), and the calculation has excluded “Urban Park Namba” which is decided to be transferred as of the date of thisdocument.
(Note 2) “GOP” is the abbreviation for “Gross Operating Profit”, and in Japanese is translated as “Eigyo-ara-rieki” or “Eigyo-so-rieki”, and means the amountcalculated by subtracting the operating expenses (labor costs, cleaning, utilities, advertising and other expenses) directly related to the revenues fromthe hotel operations. The same applies below.

The main reasons behind the decisions to acquire and lease each of the Assets to be Acquired are described
below. The tenants of the Assets to be Acquired satisfy the tenant selection standards described in the “Report on
the Management Structure and System of the Issuer of Real Estate Investment Trust Units and Related Parties”
announced on April 30, 2024.
<KOKO HOTEL Tsukiji Ginza>
KOKO HOTEL Tsukiji Ginza is a limited-service type hotel located at an approximately 6-minute walk from "Tsukiji"
Station on the Tokyo Metro Hibiya Line. The hotel is situated in a rare and valuable location, as the Tsukiji Outer
Market is nearby, and also within walking distance from the Ginza area, one of Japan's leading commercial districts.
Furthermore, the hotel is close to the planned redevelopment site of the former Tsukiji market, and internal
growth is expected in the mid- to long-term.
In terms of property characteristics, the hotel is relatively new as construction was completed in December 2020,
and is equipped with the latest facilities, with a total of 188 guest rooms, mainly double, triple, and quadruple
rooms accommodating two or more people.
Furthermore, in terms of hotel operations management, Polaris Group, a member of the Star Asia Group, is theoperator, and through area management together with "KOKO HOTEL Ginza 1-chome" held by SAR, efficient
operation is achieved through mutual cooperation of transportation of guests and by providing mutual support forhotel staff, etc., realizing a high GOP ratio.
The decision to acquire the property was made based on comprehensive consideration of the above-mentioned
location characteristics, property characteristics, and operational aspects, etc., as it was determined that, in
addition to the property's asset value, stable earnings can be expected from the property over the mid- to longterm and that future internal growth will mainly contribute to improvement of growth of portfolio earnings.
<KOKO HOTEL Residence Asakusa Kappabashi, KOKO HOTEL Residence Asakusa Tawaramachi>
KOKO HOTEL Residence Asakusa Kappabashi is a residence-type hotel located at an approximately 4-minute walkfrom "Asakusa" Station on the Tsukuba Express line. KOKO HOTEL Residence Asakusa Tawaramachi is also a
residence-type hotel located at an approximately 2-minute walk from "Tawaramachi" Station on the Tokyo Metro
Ginza Line. Both hotels are located in the Asakusa area which has abundant leisure demand and is highly appealing
to both domestic and foreign tourists.
In terms of property characteristics, KOKO HOTEL Residence Asakusa Kappabashi and KOKO HOTEL Residence
Asakusa Tawaramachi are relatively new hotels, whose construction was completed in November 2020 andNovember 2021, respectively, and are equipped with the latest facilities. Furthermore, the hotels canaccommodate group guests in a single room without splitting rooms, which is a highly rare service even in Tokyo,
and given usage by mainly inbound groups and families, the hotels boast both high average number of guests, andhigh average number of nights stayed per stay.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

3

Furthermore, in terms of hotel operations management, both hotels are operated by Polaris Group, and throughthe area management of operations, an extremely high GOP ratio is achieved, by conducting efficient operations
through mutual cooperation of transportation of guests and by providing mutual support for hotel staff, etc.
The decision to acquire the property was made based on comprehensive consideration of the above-mentioned
location characteristics, property characteristics, and operational aspects, etc., as it was determined that stableearnings can be expected from the property over the mid- to long-term and that future internal growth willcontribute mainly to the improvement of the growth of portfolio earnings.
<KOKO HOTEL Osaka Shinsaibashi>
KOKO HOTEL Osaka Shinsaibashi is a limited service-type hotel located at an approximate 3-minute walk from
"Shinsaibashi" Station on the Osaka Metro Midosuji Line and Nagahori Tsurumi-ryokuchi Line. It is conveniently
located with easy access to “Namba” Station, the gateway to Kansai International Airport, and is also within walking
distance to the Shinsaibashi area with its concentration of commercial retail facilities as well as "Dotonbori", one
of Osaka's most popular tourist spots, making it a suitable base for business and leisure travelers.
In terms of property characteristics, it has a massive exterior and a total of 211 guest rooms, mainly double andtwin bedrooms that can accommodate two or more people.
Furthermore, in terms of hotel operations management, Polaris Group is the operator, and through area
management together with "KOKO HOTEL Osaka Namba" held by SAR, the hotel has achieved a high GOP ratio byconducting efficient operations through mutual cooperation of transportation of guests and by providing mutual
support for hotel staff, etc.
The decision to acquire the property was made based on comprehensive consideration of the above-mentioned
location characteristics, property characteristics, and operational aspects, etc., as it was determined that theproperty is expected to generate stable earnings over the mid- to long-term and that future internal growth willcontribute mainly to the improvement of growth of portfolio earnings.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

4

3.

Summary of Assets to be Acquired
Overview of Assets to be Acquired is shown in the tables (1) - (4) below. For a glossary of the terms used in thetables, please refer to “Reference Material 5 The terms used in the table of Description of Assets to be Acquired”
below.
(1) KOKO HOTEL Tsukiji Ginza
Property
Property
HTL-17
No.
nameOverview of specified asset
Type of specified asset

KOKO HOTEL Tsukiji Ginza

Beneficiary interest in trust

Planned acquisition price 17,000 million yen
Appraised value
Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

Type

HOTEL

Mitsubishi UFJ Trust and Banking
Corporation
August 30, 2024

TrusteePlanned acquisition date

18,800 million yen
Seller6-803-3 Tsukiji, Chuo-ku, Tokyo and others

GK Tsukiji Hotel Kanri

6-8-8 Tsukiji, Chuo-ku, Tokyo
Approx. 6-minute walk from “Tsukiji” Station of Tokyo Metro Hibiya Line
Proprietary ownership
829.96㎡ (Note 1)

Use district

Commercial district

80%

Floor area ratio

500% (Note 2)

6,086.48㎡ (annexed building
Included)

Use

Hotel

December 15, 2020

Structure and floors

Steel-framed structure 11F

Tokyo Capital Management Co.,Ltd.

Master lease company

SAR

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateAugust 31, 2034

Proprietary ownership

Status of leasing (Note 3)
Total leasable area

6,086.48㎡

Total leased area

6,086.48㎡

Total number of tenants

1Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits-

Occupancy rate
December 2023
100.0%
Special notation

January 2024
100.0%

February 2024
100.0%March 2024
100.0%

April 2024
100.0%

Not applicable.

(Note 1) Site area includes setback area of 2.99㎡.
(Note 2) The permitted FAR is 700% due to relaxation by the district planning.
(Note 3) SAR which is the master lease company is expecting to sign the lease agreement described below with KOKO HOTELS CO., LTD. on the same day as theplanned acquisition date.
・Form of contract: fixed-term building lease agreement
・Contract period: August 30, 2024 to August 31, 2039
・Rent: fixed rent (22,700,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)
・Security deposit: Includes security deposits etc. received from sub-leases.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

5

Property Features/ Key Points of EvaluationIn addition to being within walking distance to Ginza, the hotel can capture both business and tourist demand by taking
advantage of its rarity and location superiority as a hotel close to the redevelopment project of the former Tsukiji Marketsite.
The hotel is located with high transportation convenience, at an approximate 6-minute walk from “Tsukiji” Station on theTokyo Metro Hibiya Line and an approximate 9-minute walk from “Higashi-Ginza” Station on the Toei Subway Asakusa Lineand Tokyo Metro Hibiya Line.
The hotel has 188 rooms and all rooms can accommodate 2-4 persons and accommodation demand can be expected forgroup guests such as school trip students, sports groups, inbound group tourists, etc.

Due to the location feature and the room-type composition, the hotel is expected to capture in particular tourism demand
over the mid- to long-term and is expected to have earnings growth potential.
The decision to acquire the property was made after confirming KOKO HOTEL Tsukiji Ginza's past operational performanceand the assumed stable occupancy period based on the appraisal report, and further comparing them with SAR's
assumptions under its business forecast.
The property, which was acquired by the sponsor group through its extensive relationship network, is planned to beacquired by utilizing preferential negotiation rights which SAR has obtained from the sponsor group.
<Performance results, anticipated figures during stable operation as stated in the appraisal report and preconditions for
performance forecast of SAR >Anticipated
Preconditions for
figures duringperformance
Feb. 2024
March 2024
April 2024
May 2024
stable operation
forecast of
as stated in the
FP2025/07
appraisal report
Occupancy
rate
ADR
(JPY)
RevPAR
(JPY)

94.2%

95.2%

93.8%

94.4%

89.0%

89.6%

21,761

27,83528,08023,42523,00023,556

20,50826,48926,348

22,107

20,47021,104*The “anticipated figures during stable operation as stated in the appraisal report” are values estimated by a real estateappraiser for the appraisal report based on past performance and future forecasts. There is no guarantee that these figures will
match actual performance, and may actually differ significantly. The same applies below.
**The “Preconditions for performance forecast of FP 2025/07" are estimated values calculated by the Asset Manager based on
certain assumptions as of the date of this document for the 2025 July period performance forecast. They do not guarantee therealization of these values, and there is a possibility that the actual numbers may vary significantly. The same applies below.
<Forecast of # of accommodation facilities supply by region>
Regarding increase in the number of accommodation facilities, Tokyo is lagging with below average growth.

Sources: Created by the Asset Manager based on “Monthly Hoteres” published by Ohta publication Co., Ltd.
and “Statistical Survey on Accommodation and Travel” published by the Japan Tourism Agency(Note) The figures for “Forecast of # of accommodation facilities supply by region” are estimates calculated by taking the total accommodation facilities inventory foreach region at the end of 2023 and adding to the number of new accommodation facilities that have actually been supplied or are to be supplied in 2024 andbeyond. The inventory of each region at the end of 2023 was calculated by taking the number of accommodation facilities used and dividing it by theoccupancy rate, and dividing the quotient by the number of days in the period covered (365 days). The category "accommodation facilities" is calculated by
excluding "common lodging house" and "company/organization lodging facilities" from the types of accommodation facilities defined as "ryokan (Japaneseinn)," "resort hotel," "business hotel," "city hotel," "common lodging house," and "company/organization lodging facilities" in the Japan Tourism Agency's"Statistical Survey on Accommodation and Travel" The number of accommodation facilities that have been supplied or are to be supplied in 2024 and beyond
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

6was based on the data available as of June 15, 2024 and does not include the number of accommodation facilities that were unplanned at that time. Theseestimates have been presented in order to provide an idea of how the number of accommodation facilities are expected to trend over the next few years, andthe actual figures may deviate significantly.

<Trajectory of accommodation fees index in Tokyo’s 23 wards>

Source: Created by the Asset Manager based on “2020-base Consumer Price Index data”
published by the Ministry of Internal Affairs and Communications(Note) The “Trajectory of accommodation fees index in Tokyo’s 23 wards” are based on the data on accommodation fees available in the 2020-Base Consumer Price
Index published by the Ministry of Internal Affairs and Communications. The accommodation fee figure for January 2019 has been indexed to 100.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

7

(Unit: Yen)
Summary of Real Estate Appraisal Report
Property name

KOKO HOTEL Tsukiji Ginza

Appraisal value

18,800,000,000 yen

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2024
Item

Indicated value by income approach
Indicated value of direct
capitalization approach

Details

Description, etc.

18,800,000,000

Estimated by correlation of the indicated value by direct capitalization method andthe indicated value by DCF method.

19,000,000,000(1) Operating revenue ((a)−(b))

782,938,000(a) Gross potential income

782,938,000

Rent has been booked based on the assessment of GOP under a stable operating
period, and such assessment has been made based on the lease agreement etc.
Not booked based on comprehensive judgment of the contract terms and attributes
and creditworthiness etc. of the lessee(s).

(b) Vacancy loss, etc.

0(2) Operating expenses

36,686,000

Maintenance andmanagement Fee

0

Not booked as the cost is borne by the lessee.

Utilities expenses

0

Not booked as the cost is borne by the lessee.

Repair expenses

1,358,000

Property management fee

1,800,000

Tenant leasing cost, etc.
Property taxes
Insurance premium0

Not booked in this report.

32,817,000

Booked by taking into consideration tax-related documents and the contents ofburden adjustment measures.

711,000

Appraised based on the insurance agreement and the level of similar real estate.

Other expenses(3) Net operating income(NOI= (1)−(2))

Booked by referring to actual past expenses, and also taking into account future
management and operations plans, expense levels for similar real estate properties,
and repair and renewal costs in the ER.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual features ofthe subject real estate property.

0

No expenses expected.

746,252,000(4) Financial interests on deposits0

No deposit applicable(5) Capital expenditures

3,256,000

Assessed by referring to levels of capital expenditures of similar real estate
properties and repair and renewal expense in the ER.

(6) FF&E reserve

22,285,000

Appraised by referring to FF&E reserve levels of similar real estate.

(7) Net cash flow
(NCF= (3) +(4)−(5) -(6))

720,711,000(8) Capitalization rate
Indicated value of DCF method

3.8%
18,600,000,000

Discount Rate

3.6%

Terminal capitalization rate

3.9%

Indicated value by cost approachAppraised by comprehensively taking into account the competitiveness of thesubject real estate, etc.

17,600,000,000

Ratio of land

84.1%

Ratio of building

15.3%

Ratio of FF&E

0.6%

Matters considered in reconciliation of indicated values anddetermination of appraisal values

Appraised by comprehensively taking into account the individual characteristics ofthe subject real estate, etc.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risk, and other factors. etc.
Estimated by multiplying the total of the land price and the building price and FF&E
price by marketability correction rate.

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

8(2) KOKO HOTEL Residence Asakusa Kappabashi
Property
Property
HTL-18
no.
nameOverview of specified asset
Type of specified asset

KOKO HOTEL Residence Asakusa Kappabashi Type

Beneficiary interest in trust

Hotel

Trustee

Sumitomo Mitsui Trust Bank, Limited

Planned acquisition price 4,300 million yen

Planned acquisition dateAugust 30, 2024

Appraisal value

5,060 million yen

Seller

GK Pearl Cap

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

3-24-30, Nishi-asakusa Taito-ku, Tokyo and others
3-24-2, Nishi-asakusa Taito-ku, Tokyo
Approx. 4-minute walk from “Asakusa” Station of Tsukuba Express Line
Proprietary ownership261.16㎡

Use district

Commercial district

80%

Floor area ratio

600% (Note1)

1,608.74㎡

Use

Hotel

November 27, 2020

Structure and floors

Steel-framed structure 12F

Tokyo Capital Management Co.,Ltd.

Master lease company

SAR

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateAugust 31, 2034

Proprietary ownership

Status of leasing (Note)
Total leasable area

1,608.74㎡

Total leased area

1,608.74㎡

Total number of tenants

1Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits-

Occupancy rate
December 2023
100.0%
Special notation(Note 1)
(Note 2)January 2024
100.0%

February 2024
100.0%March 2024
100.0%

April 2024
100.0%

Not applicable

The standard floor-area ratio is 480% due to the width of the front road. However, the floor-area ratio allowed is 600% due to theapplication of a relaxation rule based on the distance to the specified road.
SAR which is the master lease company is expecting to sign the lease agreement described below with FINO HOTELS CO., LTD on the same
day as the planned acquisition date.
・Form of contract: fixed-term building lease agreement
・Contract period: August 30, 2024 to August 31, 2039
・Rent: fixed rent (6,700,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)
・Security deposit: Includes security deposits etc. received from sub-leases.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

9

Property Features/ Key Points of Evaluation

The property is located at an approximate 4-minute walk from "Asakusa" Station on the Tsukuba Express Line, anapproximate 10-minute walk from "Tawaramachi" Station on the Tokyo Metro Ginza Line, and at an approximate 10minute walk from "Iriya" Station on the Tokyo Metro Hibiya Line.

Major tourist attraction spots such as Sensoji Temple, Nakamise Street, and Tokyo Sky Tree are concentrated in thesurrounding area, and the hotel is expected to attract tourist demand including foreigners.
The number of rooms is 42, all guest rooms can be used by groups of 4 to 6 people, and the double occupancy ratio is high,and average length of stay is long. In addition, based on area management together with KOKO HOTEL Residence Asakusa
Tawaramachi, high hotel operational efficiently and high GOP margin are realized.

Given the hotel's locational feature and room type composition, the hotel can capture tourism demand in particular, andrevenue growth potential can be expected as accommodation demand increases.
The decision to acquire the property was made based on confirming KOKO HOTEL Residence Asakusa Kappabashi's past
operational performance and the assumed stable occupancy period in the appraisal report, and further by comparing themwith the assumptions of SAR's business forecast.
The property, which was acquired by the sponsor group through its extensive relationships, is planned to be acquired by
SAR by utilizing the preferential negotiation rights which it has acquired from the sponsor group.
< Performance results, anticipated figures during stable operation as stated in the appraisal report and preconditions for
performance forecast of SAR >Anticipated figures
Preconditions forduring stableperformance
March
Feb. 2024
April 2024
May 2024
operation as statedforecast of2024
in the appraisal
FP2025/07
reportOccupancy
rate
ADR
(JPY)
RevPAR
(JPY)

76.8%

88.3%

92.8%

91.8%

80.0%

85.9%

31,65237,02438,37429,99334,40034,42824,32432,70135,60327,52827,52029,582<Percentage of number of stays of 3 or more nights
by Domestic traveler><Japanese travelers going overseas>

Domestic travelers are staying longer on average with thetravelers spending 3nights or more increasing.

Japanese travelers going overseas have not returned to precovid levels and are assumed to show a preference fordomestic travel

Source: Created by the Asset Manager based on “Travel and Tourism
Consumption Trend Survey”, published by the Japan Tourism Agency

Source: Created by the Asset Manager based on “Inbound Visitor Statistics”,
published by the Japan National Tourism Organization (JNTO)(Note) The number of “Japanese travelers going overseas” is rounded to thenearest thousand.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

10<Percentage of the number of inbound guests
staying 4 days or more><Percentage of accompanying persons
for inbound guests to Japan>

The percentage of foreign visitors staying in Japan for 4 daysor more is increasing and longer stays tend to be prolonged.

Percentage of accompanying foreign visitors to Japan isincreasing.

(Note)The “Percentage of the number of inbound guests staying 4 days or more”
is calculated based on the dates of arrival and departure.

(Note) The category "With Family/friends, etc." is calculated by dividing thetotal number of respondents by the number of respondents who
selected "spouse/partner," "family/relatives," or "friends" as options
under "accompanying persons on this trip" among “traveling alone,”"family/relatives," "friends," "spouse/partner," “colleagues,” or “others,”in the survey of spending trends of foreign visitors to Japan for each
respective period.
Source: Created by the Asset Manager based on “Report on Consumption Trends of Inbound Visitors”, published by the Japan Tourism Agency

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

11

(Unit: yen)
Summary of real estate appraisal report
Property name

KOKO HOTEL Residence Asakusa Kappabashi

Appraisal value

5,060,000,000 yen

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2024
Item

Indicated value by income approach

Details

Details

5,060,000,000

Indicated value by direct capitalization
method5,110,000,000(1) Operating revenue ((a)−(b))

226,721,000(a) Gross potential income

226,721,000(b) Vacancy loss, etc.

0(2) Operating expenses

10,348,000

Estimated by correlation of the indicated value by direct capitalization method andthe indicated value by DCF method.

Rent has been booked based on the assessment of GOP under a stable operating
period, and such assessment has been made based on the lease agreement etc.
Not booked based on comprehensive judgment of the contract terms and attributes
and creditworthiness etc. of the lessee(s).

Maintenance and management
fee0

Not booked as the cost is borne by the lessee.

Utilities expenses

0

Not booked as the cost is borne by the lessee.

Repair expenses

266,000

Property management fee

1,800,000

Tenant leasing cost, etc.
Property taxes
Insurance premium0Booked by taking into consideration tax-related documents and the contents ofburden adjustment measures.

126,000

Appraised based on the insurance contract and the level of similar real estate.

0(6) FF&E reserve(7) Net cash flow (NCF= (3)+(4)−(5)-(6))(8) Capitalization rate
Indicated value by DCF method

0620,000
6,351,000

No deposit applicable

Assessed by referring to levels of capital expenditures of similar real estate
properties and repair and renewal expense in the ER.
Appraised by referring to FF&E reserve levels of similar real estate.

209,402,000
4.1%

Appraised by comprehensively taking into account the competitiveness of thesubject real estate, etc.

5,010,000,000

Discount rate

3.9%

Terminal capitalization rate

4.2%

Indicated value by cost approach

No expenses expected.

216,373,000(4) Financial interests on deposits(5) Capital expenditures

Not booked in this report.

8,156,000

Other expenses(3) Net operating income (NOI=(1)−(2))Booked by referring to actual past expenses, and also taking into account future
management and operations plans, expense levels for similar real estate properties,
and repair and renewal costs in the ER.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual featuresof the subject real estate property.

1,970,000,000

Ratio of land

68.1%

Ratio of building

30.0%

Ratio of FF&E

1.9%

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Appraised by comprehensively taking into account the individual characteristics, etc.
of the subject property.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risks, etc.
Estimated by multiplying the total of the land price and the building price and FF&E
price by marketability correction rate.

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

12(3) KOKO HOTEL Residence Asakusa Tawaramachi
Property
Property
HTL-19no.
nameOverview of specified asset
Type of specified asset

KOKO HOTEL Residence Asakusa Tawaramachi

Beneficiary interest in trust

Type

Hotel

Trustee

Sumitomo Mitsui Trust Bank, Limited

Planned acquisition price 5,900 million yen

Planned acquisition dateAugust 30, 2024

Appraisal value

6,780 million yen

Seller

GK Pearl Cap

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

2-6-13 Kotobuki, Taito-ku, Tokyo
2-8-12 Kotobuki, Taito-ku, Tokyo
Approx. 2-minute walk from “Tawaramachi” Station of Tokyo Metro Ginza Line
Proprietary ownership
296.66㎡

Use district

Commercial district

80%

Floor area ratio

700%

2,226.57㎡

Use

Hotel

November 22, 2021

Structure and floors

Steel-framed structure 11F

Tokyo Capital Management Co.,Ltd.

Master lease company

SAR

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateAugust 31, 2034

Proprietary ownership

Status of leasing (Note)
Total leasable area

2,226.57㎡

Total leased area

2,226.57㎡

Total number of tenants

1Monthly rent (includingcommon area maintenance
fee)
Security and guarantee
deposits-

Occupancy rate
December 2023
100.0%
Special notation

January 2024
100.0%

February 2024
100.0%March 2024
100.0%

April 2024
100.0%

Not applicable(Note) SAR which is the master lease company is expecting to sign the lease agreement described below with FINO HOTELS CO., LTD on the same
day as the planned acquisition date.
・Form of contract: fixed-term building lease agreement
・Contract period: August 30, 2024 to August 31, 2039
・Rent: fixed rent (8,900,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)
・Security deposit: Includes security deposits etc. received from sub-leases.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

13

Property Features/ Key Points of Evaluation

The property is located at an approximate 2-minute walk from "Tawaramachi" Station on the Tokyo Metro Ginza Line and a
7-minute walk from "Asakusa" Station on the Toei Asakusa Line.
The property is located near major tourist attraction spots such as Senso-ji Temple, Nakamise Street, and Tokyo Sky Tree,and is expected to attract tourist demand including foreigners.
The number of rooms is 47, all rooms can be used by groups of 4 to 6 people, and the double occupancy ratio is high, andaverage length of stay is long. In addition, based on area management together with KOKO HOTEL Residence Asakusa
Kappabashi, high hotel operational efficiently and high GOP margin are realized.

Given the hotel's locational feature and room type composition, the hotel can capture tourism demand in particular, andrevenue growth potential can be expected as accommodation demand increases.
The decision to acquire the property was made based on confirming KOKO HOTEL Residence Asakusa Tawaramachi's past
operational performance and the assumed stable occupancy period based on the appraisal report, and further bycomparing them with the assumptions of SAR's business forecast.
The property, which was acquired by the sponsor group through its extensive relationships, is planned to be acquired by
SAR by utilizing the preferential negotiation rights which it has acquired from the sponsor group.
< Performance results, anticipated figures during stable operation as stated in the appraisal report and preconditions for
performance forecast of SAR >Anticipated figures
Preconditions forduring stableperformance
March
Feb. 2024
April 2024
May 2024
operation as statedforecast of2024
in the appraisal
FP2025/07
reportOccupancy
rate
ADR
(JPY)
RevPAR
(JPY)

86.5%

88.8%

91.6%

93.0%

84.0%

85.9%

34,88940,964

43,19135,30038,50039,63430,17936,382

39,57632,82932,34034,048

Please refer to the data on “ Percentage of number of stays of 3 or more nights by Domestic traveler”, “Japanese travelers goingoverseas”, “Percentage of the number of inbound guests
staying 4 days or more” and “Percentage of accompanying persons for foreign visitors to Japan” stated in the “Property Features/
Key Points of Evaluation” of KOKO HOTEL Residence Asakusa Kappabashi.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

14

(Unit: yen)
Summary of real estate appraisal report
Property name

KOKO HOTEL Residence Asakusa Tawaramachi

Appraisal value

6,780,000,000

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2024
Item

Indicated value by income approach

Details

Details

6,780,000,000

Estimated by correlation of the indicated value by direct capitalization method andthe indicated value by DCF method.

Indicated value by direct capitalization
method6,840,000,000(1) Operating revenue ((a)−(b))

302,896,000(a) Gross potential income

302,896,000(b) Vacancy loss, etc.

0(2) Operating expenses

13,428,000

Rent has been booked based on the assessment of GOP under a stable operating
period, and such assessment has been made based on the lease agreement etc.
Not booked based on comprehensive judgment of the contract terms and attributes
and creditworthiness etc. of the lessee(s).

Maintenance and management fee

0

Not booked as the cost is borne by the lessee.

Utilities expenses

0

Not booked as the cost is borne by the lessee.

Repair expenses

363,000

Property management fee

1,800,000

Tenant leasing cost, etc.
Property taxes
Insurance premium0Booked by taking into consideration tax-related documents and the contents ofburden adjustment measures.

180,000

Appraised based on the insurance contract and the level of similar real estate.

0(6) FF&E reserve(7) Net cash flow NCF = (3)+(4)−(5)−(6))(8) Capitalization rate
Indicated value by DCF method

0847,000
8,352,000

No deposit applicable

Assessed by referring to levels of capital expenditures of similar real estate
properties and repair and renewal expense in the ER.
Appraised by referring to FF&E reserve levels of similar real estate.

280,269,000
4.1%

Appraised by comprehensively taking into account the competitiveness of thesubject real estate, etc.

6,710,000,000

Discount rate

3.9%

Terminal capitalization rate

4.2%

Indicated value by cost approach

No expenses expected.

289,468,000(4) Financial interests on deposits(5) Capital expenditures

Not booked in this report.

11,085,000

Other expenses(3) Net operating income NOI= (1)−(2))

Booked by referring to actual past expenses, and also taking into account future
management and operations plans, expense levels for similar real estate properties,
and repair and renewal costs in the ER.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual featuresof the subject real estate property.

3,220,000,000

Ratio of land

70.8%

Ratio of building

27.7%

Ratio of FF&E

1.5%

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Appraised by comprehensively taking into account the individual characteristics, etc.
of the subject property.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risks, etc.
Estimated by multiplying the total of the land price and the building price and FF&E
price by marketability correction rate.

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

15(4) KOKO HOTEL Osaka Shinsaibashi
Property
Property
HTL-20no.
nameOverview of specified asset
Type of specified asset

KOKO HOTEL Osaka Shinsaibashi

Hotel

Trustee

Sumitomo Mitsui Trust Bank, Limited

Planned acquisition price 7,500 million yen

Planned acquisition dateAugust 30, 2024

Appraisal value

7,990 million yen

Seller

GK Mon Talisman

Location
Indication of residential
address

3-10-6 Minamisenba, Chuo-ku, Osaka-shi, Osaka

Nearest station
Type ofownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompanyLand

Beneficiary interest in trustType

3-3-17 Minamisenba, Chuo-ku, Osaka-shi, Osaka
Approx. 3-minute walk from “Shinsaibashi” Station of Osaka Metro Midosuji Line / Nagahori Tsurumiryokuchi Line
Proprietary ownership
1,636.96㎡ (Note1)

Use district

Commercial district

80%

Floor area ratio

600%

8,881.68㎡

Use

Hotel / Clinic

April 19, 2005

Structure and floors

Steel-framed reinforced concrete
structure B1/10F

Tokyo Capital Management Co.,Ltd.

Master lease company

SAR

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration dateAugust 31, 2034

Proprietary ownership

Status of leasing (Note2)
Total leasable area

8,881.68㎡

Total leased area

8,881.68㎡

Total number of tenants

1Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits

65,344 thousand yen

Occupancy rate
December 2023
100.0%
Special notation(Note 1)
(Note 2)January 2024
100.0%

February 2024
100.0%March 2024
100.0%

April 2024
100.0%

Not applicable

Site area includes approximately 162.4㎡ of road setback area.
SAR which is the master lease company is expecting to sign the lease agreement described below with KOKO HOTELS CO., LTD. on thesame day as the planned acquisition date.
・Form of contract: fixed-term building lease agreement
・Contract period: August 30, 2024 to August 31, 2039
・Rent: fixed rent (11,700,000 yen per month) + floating rent (actual GOP x 85% - fixed rent)
・Security deposit: Includes security deposits etc. received from sub-leases.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

16

Property Features/ Key Points of Evaluation

The property is located at an approximate 3-minute walk from "Shinsaibashi" Station on the Osaka Metro Midosuji Lineand Nagahori Tsurumi-ryokuchi Line. From the nearest station, it takes approximately 14 minutes to “Shin-Osaka” Station
and approximately 7 minutes to “Umeda” Station, giving it a high locational advantage with good access to major areas in
Osaka.
The area surrounding "Shinsaibashi" Station is one of Osaka's representative commercial districts, and also has strong
business demand as a location where the headquarters and branches of various companies are situated.
Given the property's locational feature of being close to a concentrated commercial district, revenues growth can be
expected.
The hotel has 211 rooms, and since Polaris Group joined as a hotel operator, the room type has been changed from single
rooms to twin rooms, and the double occupancy rate (average number of guests) has increased, successfully attracting
leisure demand.

Rental income from tenants such as the clinic on the basement floor and the restaurant on the first floor contribute to the
GOP margin.
The decision to acquire the property was made based on confirming KOKO HOTEL Osaka Shinsaibashi's past operational
performance and the assumed stable occupancy period based on the appraisal report, and further by comparing themwith the assumptions of SAR's business forecast.
The property, which was acquired by the sponsor group through its extensive relationships, is planned to be acquired by
SAR by utilizing the preferential negotiation rights which it has acquired from the sponsor group.
< Performance results, anticipated figures during stable operation as stated in the appraisal report and preconditions for
performance forecast of SAR >Anticipated figures
Preconditions forduring stableperformance
March
Feb. 2024
April 2024
May 2024
operation as statedforecast of2024
in the appraisal
FP2025/07
reportOccupancy
rate
ADR
(JPY)
RevPAR
(JPY)

81.7%

87.5%

90.2%

86.1%

86.0%

89.1%

10,155

11,69911,758

10,725

11,50011,682

8,293

10,234

10,608

9,236

9,890

10,414<The number of passengers at Kansai International Airport (to the same month of 2019)(Note)>
The number of passengers at Kansai International Airport has been rising since around autumn of 2022,
but has not recovered to the 2019 level. However, further growth is expected on the back of increased
tourism and business demand, and inbound travel.
Expo 2025 Osaka, Kansai, which is scheduled to be held for six months from April to October 2025, is
expected to attract many domestic and foreign visitors.

Source: Created by the Asset Manager based on “Monthly usage status” released by Kansai Airports(Note) “The number of passengers at Kansai International Airport (to the same month of 2019)” shows how the international and domestic passenger traffic for the
given months in each year compare, in percentage terms, to the international and domestic passenger traffic for the same month in 2019.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

17

(Unit: yen)
Summary of real estate appraisal report
Property name

KOKO HOTEL Osaka Shinsaibashi

Appraisal value

7,990,000,000

Appraisal firm

Japan Real Estate Institute

Date of value

July 1, 2024
Item

Indicated value by income approach

Details

Details

7,990,000,000

Estimated by correlation of the indicated value by direct capitalization method and theindicated value by DCF method.

Indicated value by direct capitalization
method8,060,000,000(1) Operating revenue ((a)−(b))

395,700,000(a) Gross potential income

395,700,000(b) Vacancy loss, etc.

0(2) Operating expenses

48,949,000

Rent has been booked based on the assessment of GOP under a stable operating
period, and such assessment has been made based on the lease agreement etc.
Not booked based on comprehensive judgment of the contract terms and attributes
and creditworthiness etc. of the lessee(s).

Maintenance and management fee

0

Not booked as the cost is borne by the lessee.

Utilities expenses

0

Not booked as the cost is borne by the lessee.

Repair expenses

8,270,000

Property management fee

1,800,000

Tenant leasing cost, etc.

0Booked by referring to actual past expenses and also taking into account future
management and operations plans, expense levels for similar real estate properties,
and repair and renewal costs in the ER.
Booked by referring to the planned terms of agreement, and also by taking into
account the fee levels for similar real estate properties and the individual features ofthe subject real estate property.
Not booked in this report.

Property taxes

37,847,000

Booked by taking into consideration tax-related documents and the contents of burden
adjustment measures.

Insurance premium

1,032,000

Appraised based on the insurance contract and the level of similar real estate.

Other expenses(3) Net operating income (NOI= (1)−(2))(4) Financial interests on deposits

0

No expenses expected.

346,751,000
653,000

Appraised investment return as 1.0%.

(5) Capital expenditures

19,975,000

Assessed by referring to levels of capital expenditures of similar real estate properties
and repair and renewal expense in the ER.

(6) FF&E reserve

12,973,000

Appraised by referring to FF&E reserve levels of similar real estate.

(7) Net cash flow (NCF= (3)+(4)−(5)−(6))

314,456,000(8) Capitalization rate
Indicated value by DCF method

3.9%
7,920,000,000

Discount rate

3.7%

Terminal capitalization rate

4.0%

Indicated value by cost approachAppraised by comprehensively taking into account the competitiveness of the subject
real estate, etc.

7,790,000,000

Ratio of land

79.9%

Ratio of building

18.3%

Ratio of FF&E

1.8%

Matters considered in reconciliation of indicated values anddetermination of appraisal value

Appraised by comprehensively taking into account the individual characteristics, etc. ofthe subject property.
Appraised by comprehensively taking into account future trends, riskiness of thesubject property, market risks, etc.
Estimated by multiplying the total of the land price and the building price and FF&E
price by marketability correction rate.

Determined using the indicated value by income approach as standard and byreference to the indicated value by cost approach.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

18

4. Planned Seller Profile
1) KOKO HOTEL Tsukiji Ginza
Name
Location
Representative
Main business description

GK Tsukiji Hotel Kanri
5-1-4, Toranomon, Minato-ku, Tokyo
Representative partner: Ippanshadanhoujin Ansei
Operational executor: Takaaki Fukunaga
1. Acquisition, ownership and disposition of beneficiary interest in trust of real estate
2. Acquisition, ownership and disposition of loan claims
3. Acquisition, ownership and disposition of corporate bonds, silent partnership interest andother securities
4. Sales, leasing, management, acquisition, ownership, disposition and use of real estate
5. All businesses incidental to the above
300,000 yen
October 25, 2019

CapitalEstablishedNet asset
Total asset
The information is undisclosed as consent to disclosure has not been obtained from thecompany.
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personnel relationship to report.
Business relationship
There is no business relationship to report.
Related party or not
The afore-mentioned company does not fall under the category of related party of SAR and theAsset Manager. The afore-mentioned company does not fall under the category of interested
party, etc. as provided in the Investment Trusts Act or the Enforcement Order of theInvestment Trusts Act; however, since it is an investment vehicle for which the interested party
has entered into an investment advisory agreement it falls under the category of interested
party prescribed in the “Rules on Transactions with Interested Parties”, which is the voluntaryrules set forth by the Asset Manager for preventing conflict of interests regarding its
management of SAR’s assets. Upon making decisions on the acquisition of assets, the AssetManager undergoes deliberations and approval processes in accordance with laws andregulations and such rules.

2) KOKO HOTEL Residence Asakusa Kappabashi, KOKO HOTEL Residence Asakusa Tawaramachi
Name
Location
Representative
Main business description

GK Pearl Cap
5-1-4, Toranomon, Minato-ku, Tokyo
Representative partner: Ippanshadanhoujin Ansei
Operational executor: Takaaki Fukunaga
1. Acquisition, ownership and disposition of beneficiary interest in trust of real estate
2. Acquisition, ownership and disposition of loan claims
3. Acquisition, ownership and disposition of corporate bonds, silent partnership interest andother securities
4. Sales, leasing, management, acquisition, ownership, disposition and use of real estate
5. All businesses incidental to the above
300,000 yen
March 24, 2022

CapitalEstablishedNet asset
Total asset
The information is undisclosed as consent to disclosure has not been obtained from thecompany.
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personnel relationship to report.
Business relationship
There is no business relationship to report.
Related party or not
The afore-mentioned company does not fall under the category of related party of SAR and theAsset Manager. The afore-mentioned company does not fall under the category of interested
party, etc. as provided in the Investment Trusts Act or the Enforcement Order of theInvestment Trusts Act; however, since it is an investment vehicle with which the interested
party has entered into a discretionary investment agreement, it falls under the category ofinterested party prescribed in the “Rules on Transactions with Interested Parties”, which is theNote: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

19

voluntary rules set forth by the Asset Manager for preventing conflict of interests regarding its
management of SAR’s assets. Upon making decisions on the acquisition of assets, the AssetManager undergoes deliberations and approval processes in accordance with laws andregulations and such rules.

3) KOKO HOTEL Osaka Shinsaibashi
Name
Location
Representative
Main business description

GK Mon Talisman
5-1-4, Toranomon, Minato-ku, Tokyo
Representative partner: Ippanshadanhoujin Ansei
Operational executor: Takaaki Fukunaga
1. Acquisition, ownership and disposition of beneficiary interest in trust of real estate
2. Acquisition, ownership and disposition of loan claims
3. Acquisition, ownership and disposition of corporate bonds, silent partnership interest andother securities
4. Sales, leasing, management, acquisition, ownership, disposition and use of real estate
5. All businesses incidental to the above
300,000 yen
February 22, 2022

CapitalEstablishedNet asset
Total asset
The information is undisclosed as consent to disclosure has not been obtained from thecompany.
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personnel relationship to report.
Business relationship
There is no business relationship to report.
Related party or not
The afore-mentioned company does not fall under the category of related party of SAR and theAsset Manager. The afore-mentioned company does not fall under the category of interested
party, etc. as provided in the Investment Trusts Act or the Enforcement Order of theInvestment Trusts Act; however, since it is an investment vehicle with which the interested
party has entered into a discretionary investment agreement, it falls under the category ofinterested party prescribed in the “Rules on Transactions with Interested Parties”, which is thevoluntary rules set forth by the Asset Manager for preventing conflict of interests regarding its
management of SAR’s assets. Upon making decisions on the acquisition of assets, the AssetManager undergoes deliberations and approval processes in accordance with laws andregulations and such rules.

5. Summary of tenants and hotel operators
The operators of the Assets to be acquired will be as follows.
1) KOKO HOTEL Tsukiji Ginza, KOKO HOTEL Osaka Shinsaibashi
Name
KOKO HOTELS CO., LTD.
Location
1-12-3、Iwamoto-cho, Chiyoda-ku, Tokyo
Representative
Representative Director Takahiro Tsujikawa
Main business description
1. Management of hotels, restaurants, sports facilities, golf courses, spas and other bathingfacilities, and entrustment of management
2. Operation, entrustment of management, management, purchase and sale, and consultingof hotels, restaurants, sports facilities, golf courses, spas, and other bathing facilities
3. Planning, operation, and entrustment of training and education for hotel employees andcooks
4. Worker dispatch business5. Traveling and travel agency business6. mail order business using the Internet
7. shopping and home delivery of daily necessities
8. Leasing, buying and selling trademark rights, design rights, utility model rights, patentrights and technical knowledge
9. Planning, management and consulting of various events
10. investment and investment advisory business
11. Buying, selling, exchanging, leasing, managing and brokering real estate
12. Sale of alcoholic beverages, cigarettes, stamps, foodstuffs, specialty souvenirs, clothing andother daily sundries
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

2013. Any and all businesses incidental or related to each of the preceding items
Capital1 million yen
Established
September 8, 2020
Net asset
The information is undisclosed as consent to disclosure has not been obtained from thecompany.
Total asset
Major shareholders andPolaris Holdings Co., Ltd. 100%
shareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personnel relationship to report.
Business relationship
There is no business relationship to report.
Related party or not
The afore-mentioned company does not fall under the category of related party of SAR and theAsset Manager. The afore-mentioned company falls under interested party, etc. defined in theInvestment Trusts Act and the Enforcement Order of the Investment Trusts Act and falls under
the category of interested party prescribed in the “Rules on Transactions with Interested
Parties”, which is the voluntary rules set forth by the Asset Manager for preventing conflict ofinterests regarding its management of SAR’s assets. Upon deciding to the lease of suchproperty, the Asset Manager plans to conduct deliberations and approval processes inaccordance with laws and regulations and such rules.

2) KOKO HOTEL Residence Asakusa Kappabashi, KOKO HOTEL Residence Asakusa Tawaramachi
FINO HOTELS CO., LTD

Name
Location
Representative
Main business description

1-12-3、Iwamoto-cho, Chiyoda-ku, Tokyo
Representative Director Shigeru Takakura
1. Management of hotels, restaurants, sports facilities, golf courses, spas and other bathingfacilities, and entrustment of management
2. Operation, entrustment of management, management, purchase and sale, and consultingof hotels, restaurants, sports facilities, golf courses, spas, and other bathing facilities
3. Planning, operation, and entrustment of training and education for hotel employees andcooks
4. General and specific worker dispatch services
5. Traveling and travel agency business
6. Mail order business using the Internet
7. Shopping and home delivery of daily necessities
8. Leasing, buying and selling trademark rights, design rights, utility model rights, patentrights and technical knowledge
9. Planning, management and consulting of various events
10. Money lending business
11. Leasing and rental of cruisers and marine leisure goods
12. Investment and investment advisory business
13. Buying, selling, exchanging, leasing, managing, and brokering real estate
14. Sale of alcoholic beverages, cigarettes, stamps, foodstuffs, specialty souvenirs, clothing andother daily sundries
15. All businesses incidental and related to each of the preceding items
1 million yen
April 3, 2007
The information is undisclosed as consent to disclosure has not been obtained from thecompany.
Polaris Holdings Co., Ltd.100%

CapitalEstablishedNet asset
Total asset
Major shareholders andshareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital relationship to report.
Personnel relationship There is no personnel relationship to report.
Business relationship
There is no business relationship to report.
Related party or not
The afore-mentioned company does not fall under the category of related party of SAR and theAsset Manager. The afore-mentioned company falls under interested party, etc. defined in theInvestment Trusts Act and the Enforcement Order of the Investment Trusts Act and falls under
the category of interested party prescribed in the “Rules on Transactions with Interested
Parties”, which is the voluntary rules set forth by the Asset Manager for preventing conflict ofinterests regarding its management of SAR’s assets. Upon deciding to the lease of such

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

21

property, the Asset Manager plans to conduct deliberations and approval processes inaccordance with laws and regulations and such rules.

6. Status of Parties Related to the Acquisition
1) KOKO HOTEL Tsukiji Ginza
Company name

Relationship with parties
who have special interests

Acquisition background andreason, etc.
Acquisition price
Acquisition period

Current owner, current trustee
GK Tsukiji Hotel Kanri

Previous owner, previous trustee
Other than the one in a relationship ofspecial interest

The company does not fall under the category ofinterested person, etc. as provided in theInvestment Trusts Act, however, since it is aninvestment vehicle for which the interested
party has entered into an investment advisory
agreement it falls under the category ofinterested party prescribed in the “Rules on
Transactions with Interested Parties” set forth by
the Asset Manager.

―

Acquired for investment management purpose―(Note)
April 30, 2021――

(Note) Omitted as the current owner has owned the property for over one year.

2) KOKO HOTEL Residence Asakusa Kappabashi, KOKO HOTEL Residence Asakusa Tawaramachi
Company name

Relationship with parties
who have special interests

Acquisition background andreason, etc.
Acquisition price
Acquisition period

Current owner, current trustee
GK Pearl Cap

Previous owner, previous trustee
Other than the one in a relationship ofspecial interest

The company does not fall under the category ofinterested person, etc. as provided in theInvestment Trusts Act, however, since it is aninvestment vehicle with which the interested
party has entered into a discretionary
investment agreement, it falls under the
category of interested party prescribed in the“Rules on Transactions with Interested Parties”
set forth by the Asset Manager.

―

Acquired for investment management purpose―(Note)
May 20, 2022――

(Note) Omitted as the current owner has owned the property for over one year.

3) KOKO HOTEL Osaka Shinsaibashi
Company name

Relationship with parties
who have special interests

Acquisition background andreason, etc.
Acquisition price
Acquisition period

Current owner, current trustee
GK Mon Talisman

Previous owner, previous trustee
Other than the one in a relationship ofspecial interest

The company does not fall under the category ofinterested person, etc. as provided in theInvestment Trusts Act, however, since it is aninvestment vehicle with which the interested
party has entered into a discretionary
investment agreement, it falls under the
category of interested party prescribed in the“Rules on Transactions with Interested Parties”
set forth by the Asset Manager.

―

Acquired for investment management purpose―(Note)
April 28, 2022――

(Note) Omitted as the current owner has owned the property for over one year.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

227. Overview of Brokera) Overview of Broker
Name
Location
Representative
Main business description

Star Asia Asset Advisors Co., Ltd.
Atago Green Hills MORI Tower, 18th Floor, 2-5-1 Atago, Minato-ku, Tokyo
CEO Keiji Watanabe
1. Investment management business prescribed in the Financial Instruments and Exchange Act.
2. Type II financial instruments business prescribed in the Financial Instruments and ExchangeAct.
3. Investment advisory and agency business prescribed in the Financial Instruments andExchange Act.
4. Comprehensive real estate investment advisory business.
5. Business based on the Real Estate Specified Joint Enterprise Act.
6. Building lots and buildings transaction business.
7. The business of leasing, management, and operation of real estate.
8. to 11. Omitted
12. All businesses incidental to the above
Capital50 million yen
EstablishedMay 2, 2008
Relationship with SAR or the Asset Manager
Capital relationship
There is no capital tie to be noted between SAR / the Asset Manager and the abovementioned
company.
Personnel relationship There is no personnel relationship to report.
Business relationshipIn the fiscal period ended January 31, 2024 (16th fiscal period), SAR engaged in asset
acquisition with the aforementioned company, which acted as an intermediary.
Related party or not
The afore-mentioned company does not fall under the category of related party of SAR and theAsset Manager. The aforementioned company falls under the category of interested party, etc.
as defined in Article 201 Paragraph 1 of the Investment Trusts Act and Article 123 of the
Enforcement Order of the Investment Trusts Act, and falls under the category of interested
party prescribed in the “Rules on Transactions with Interested Parties”, which is the voluntaryrules set forth by the Asset Manager for preventing conflict of interests regarding its
management of SAR’s assets. Upon determination of the retention as broker, the AssetManager has performed deliberation and approval in accordance with laws and regulations andsuch rules.

b) Breakdown and value of the brokerage commissions
Breakdown of brokerage commission
Amount of brokerage commission(Excluding consumption tax and local
consumption tax)

Brokerage commissions for the sale and purchase of beneficiary interest in trust.
KOKO HOTEL Tsukiji Ginza
2,500,000 yen
KOKO HOTEL Residence Asakusa Kappabashi
2,500,000 yen
KOKO HOTEL Residence Asakusa Tawaramachi
2,500,000 yen
KOKO HOTEL Osaka Shinsaibashi
2,500,000 yen
Total
10,000,000 yen

8．Interested-Party Transactions
The sellers of the Assets to be Acquired do not fall under interested party, etc. under the Investment Trusts Act; however, they fallunder the category of interested party prescribed in the “Rules on Transactions with Interested Parties” which are the voluntaryrules set forth by the Asset Manager for preventing conflict of interests regarding its management of SAR’s assets.
The broker of the Acquisition under the lease agreements related to the Assets to be Acquired fall under interested party, etc.
under the Investment Trusts Act, and they also fall under the category of interested party prescribed in the “Rules on Transactions
with Interested Parties” which are the voluntary rules set forth by the Asset Manager for preventing conflict of interests regarding
its management of SAR’s assets.
Upon deciding on the signing of related transaction agreements above, the Asset Manager has conducted deliberations andapproval processes in accordance with laws and regulations and such rules.

9．The Acquisition schedule
August 19, 2024
August 30, 2024

the Acquisition decided
Signed the beneficiary interest in trust sale and purchase agreements of the Assets to be Acquired
Acquire the Assets to be Acquired (planned)
Pay the purchase proceeds for the Assets to be Acquired (planned)
Sign the master lease agreements, lease agreements and property management agreements(planned)

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

23

10．Settlement method
The settlement for the Assets to be Acquired is expected to take place by making lump-sum payment of theacquisition price on the planned acquisition dates.
11．Future outlook
As a result of the Acquisition, there will be certain changes made to the assumptions for the forecasts for
operating results and distribution for the 18th Fiscal Period Ending January 31, 2025 described in “(REIT)
Financial Report for Fiscal Period Ended January 31, 2024” announced on March 15, 2024. For further details,
please refer to “Notice Concerning Revision to Forecasts for Operating Results and Distribution for the 17th Fiscal
Period Ended July 31, 2024 and Revision to Forecasts for Operating Results for the 18th Fiscal Period Ending
January 31, 2025 and Forecasts for Operating Results and Distribution for the 19th Fiscal Period Ending July 31,2025” announced today.
<Appendix>
・Reference Material 1
・Reference Material 2・Reference Material 3
・Reference Material 4・Reference Material 5

Summary of portfolio after the Acquisition
Portfolio list after the Acquisition
Summary of earthquake risk analysis
Location maps / photos of exterior
The terms used in the table of Description of Assets to be Acquired<Reference>
Other press releases announced today
・Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units
・Notice Concerning Revision to Forecasts for Operating Results and Distribution for the 17th Fiscal
Period Ended July 31, 2024 and Revision to Forecasts for Operating Results for the 18th Fiscal PeriodEnding January 31, 2025 and Forecasts for Operating Results and Distribution for the 19th Fiscal
Period Ending July 31, 2025
・Notice Concerning Debt Financing (Green Loans)*SAR HP URL: https://starasia-reit.com/en/

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

24

Reference Material 1

Summary of portfolio after the Acquisition＜Asset type (use)＞
Asset type (use)OfficeRetailResidence
Logistics
Hotel
Student residence (Preferred equity securities)
Total

Number of
Property
21
6
20
8
22
1
78

(Planned) Acquisition
Price (million yen)
74,94728,85437,45329,950103,794
1,562
276,561

Investment ratio (%)(Note 2)
27.1
10.4
13.5
10.8
37.5
0.6
100.0

＜Investment Areas＞(Planned) Acquisition
Price (million yen)

Area
Tokyo Area
Major Metropolitan Areas

Investment ratio (%)(Note 2)

183,408
Osaka, Nagoya, Fukuoka area
Other areas
Total

51,483
41,670276,561

66.3
18.6
15.1

33.7
100.0

(Note 1) Mezzanine loan debts and preferred securities are classified based on the asset type (use) and region of the underlying real estate.
(Note 2) Ratios have been calculated based on the total (planned) acquisition price and stated by rounding to the 1st decimal point. Therefore, ratios may not add up
to 100%.
(Note 3)Property No. RSC-05 “Urban Park Namba” which is managed as of the date of this document, a sale and purchase agreement has been signed on August 2, 2024
to the effect that it will be transferred on September 6, 2024 has been excluded from the description of the portfolio after the Acquisition.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

25

Reference Material 2 Portfolio list after the Acquisition<Real Estate Properties>(Planned)
AcquisitionPrice(millionyen)(Note 2)
2,973

Real estateappraisal value(million yen)
(Note 3)

Investment
ratio
(%)
(Note 4)

3,110

1.1

6,065

7,100

2.2

1,763

2,740

0.6

2,042

3,290

0.7

6,320

8,420

2.3

2,286

3,290

0.8

Chuo-ku, Tokyo

1,450

1,510

0.5

Shibuya-ku, Tokyo

2,580

2,810

0.9

Higashinada-ku,
Kobe-Shi, Hyogo

7,600

7,530

2.7

Shibuya-ku, Tokyo

1,020

1,230

0.4

Shinjuku-ku, Tokyo

11,20011,700

4.0

Chiyoda-ku, Tokyo

5,350

5,440

1.9

Chiyoda-ku, Tokyo

4,590

4,600

1.7

OFC-17

Urban Center Kanda Suda-cho
Urban Center Kanda
Tsukasamachi
Takadanobaba AccessShinjuku-ku, Tokyo

3,990

3,920

1.4

OFC-18

Azabu Amerex BLDG.

Minato-ku, Tokyo

2,780

2,890

1.0

OFC-19Hiei-Kudan BLDG.

2,400

2,400

0.9

OFC-20Urban Center Shin-Yokohama

2,300

2,570

0.8

OFC-21The Portal Akihabara

Chiyoda-ku, Tokyo
Kohoku-ku, Yokohama-Shi,
Kanagawa
Chiyoda-ku, Tokyo

1,510

1,490

0.5

OFC-22

Urban Center Tachikawa

1,804

2,050

0.7

OFC-23

Urban Center Hakata

2,870

3,280

1.0

OFC-24

Urban Center Fujisawa

Tachikawa-Shi, Tokyo
Hakata-ku, Fukuoka-shi,
FukuokaFujisawa-Shi, Kanagawa

2,054

2,200

0.7

74,947

83,570

27.1

RTL-01

La Park Kishiwada

Kishiwada-Shi, Osaka

5,400

5,170

2.0

RTL-02

Suroy Mall Chikushino

Chikushino-Shi, Fukuoka

6,550

6,580

2.4

RTL-03

Seiyu Minakuchi

Koka- hi, Shiga

3,320

3,320

1.2

RTL-05

BAGUS Ikebukuro West

Toshima-ku, Tokyo

2,984

3,500

1.1

RTL-06abeno nini (Retail)Abeno-ku, Osaka-Shi, Osaka

9,500

10,500

3.4

RTL-07

Urban Forum Warabi

Kawaguchi-shi, Saitama

Property
No.

Property Name

OFC-01

Minami-Azabu Shibuya Building

Minato-ku, Tokyo

OFC-03

Honmachibashi Tower

Chuo-ku, Osaka-Shi, Osaka

OFC-04

Nishi-Shinjuku Matsuya Building
Urban Center Shibuya East (Note5)
Urban Center Yokohama West
(Note 5)

Shibuya-ku, Tokyo
Shibuya-ku, Tokyo

OFC-06
OFC-08
OFC-09OFC-10
OFC-11
OFC-12
OFC-13
OFC-14OFC-15
OFC-16

Hakata-eki East Place
Nihonbashi Hamacho Park
Building
Amusement Media Gakuin
HonkanHigashi Kobe Center Building
Amusement Media Gakuin
ShinkanUrban Center Shinjuku

Location(Note 1)

Kanagawa-ku, YokohamaShi, Kanagawa
Hakata-ku, Fukuoka-Shi,
Fukuoka

Office Subtotal

Retail Subtotal

1,100

1,210

0.4

28,85430,280

10.4

RSC-01

Urban Park Azabujuban

Minato-ku, Tokyo

2,045

2,950

0.7

RSC-02

Urban Park Daikanyama

Shibuya-ku, Tokyo

6,315

10,100

2.3

RSC-07

Urban Park Kashiwa

Kashiwa-Shi, Chiba

1,186

1,210

0.4

RSC-08

Urban Park Ryokuchi Koen

1,550

1,730

0.6

RSC-10Urban Park Ichigao

1,810

2,180

0.7

RSC-11

Urban Park Gyotoku

Suita-Shi, Osaka
Aoba-ku, Yokohama-Shi,
Kanagawa
Ichikawa-Shi, Chiba

1,430

1,620

0.5

RSC-12

Shiroi Logiman

Shiroi-Shi, Chiba

2,470

2,520

0.9

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

26

RSC-13

Urban Park Sekime

Jyoto-ku, Osaka-Shi, Osaka

2,150

2,460

0.8

RSC-14

Urban Park Imazato

RSC-15

Urban Park Yoyogi

Ikuno-ku, Osaka-Shi, Osaka

993

1,110

0.4

1,740

1,990

0.6

3,506

4,190

1.3

3,160

3,690

1.1

1,115

1,310

0.4

2,019

2,100

0.7

1,060

1,250

0.4

1,113

1,190

0.4

Urban Park Mitaka

Shibuya-ku, Tokyo
Hodogaya-ku, YokohamaShi, Kanagawa
Tsurumi-ku, Yokohama-Shi,
Kanagawa
Sumida-ku, Tokyo
Takatsu-ku, Kawasaki-Shi
Kanagawa
Miyamae-ku, Kawasaki-Shi
Kanagawa
Tsurumi-ku, Yokohama-Shi
Kanagawa
Mitaka-shi, Tokyo

RSC-16

Urban Park Tokiwadai Koen

RSC-17

Urban Park Mitsuike Koen

RSC-18

Urban Park Ryogoku

RSC-19Urban Park Mizonokuchi

RSC-20Urban Park Miyamaedaira

RSC-21

Urban Park Tsurumi

RSC-22

743

1,010

0.3

RSC-23

Urban Park Kamata Minami I

Ota-ku, Tokyo

641

879

0.2

RSC-24

Urban Park Kamata Minami II

Ota-ku, Tokyo

1,375

1,770

0.5

RSC-25

Urban Park Umejima

Adachi-ku, Tokyo

1,032

1,150

0.4

37,45347,444

13.5

6,942

7,650

2.9

3,560

4,260

1.5

LGC-01

Iwatsuki Logistics

LGC-02

Yokohama Logistics

LGC-03

Funabashi Logistics

Residence Subtotal
Iwatsuki-ku, Saitama-Shi,
Saitama
Kanagawa-ku, YokohamaShi, Kanagawa
Funabashi-Shi, Chiba

7,875

8,770

3.3

LGC-04

Baraki Logistics

Ichikawa-Shi, Chiba

4,700

5,220

2.0

LGC-05Tokorozawa Logistics

Tokorozawa-Shi, Saitama

1,300

1,550

0.5

LGC-07

Funabashi Nishiura Logistics II

Funabashi-Shi, Chiba

821

907

0.3

LGC-08

Matsubushi Logistics

Kitakatsushika, Saitama

2,755

3,300

1.1

LGC-09Funabashi Hi-Tech Park Factory I

Funabashi-Shi, Chiba

1,998

2,200

0.7

29,95033,857

10.8

HTL-01R&B Hotel Umeda East
REMBRANDT STYLE Tokyo
Nishikasai

Kita-ku, Osaka-Shi, Osaka

2,069

2,320

0.7

Edogawa-ku, Tokyo

3,827

3,460

1.4

3,248

3,160

1.2

1,970

1,990

0.7

2,500

2,440

0.9

3,180

3,110

1.1

2,000

1,560

0.4

Logistics facility Subtotal

HTL-03
HTL-04
HTL-05
HTL-06
HTL-07

BEST WESTERN Yokohama
The BREAKFAST HOTEL FUKUOKATENJIN
GLANSIT AKIHABARAREMBRANDT STYLE Tokyo
Nishikasai Grande

HTL-08

KOKO HOTEL Osaka Namba

HTL-09abeno nini (Hotel)

HTL-10

KOKO HOTEL Ginza 1-Chome

HTL-11

KOKO HOTEL Sapporo Ekimae

HTL-12

KOKO HOTEL Fukuoka Tenjin

HTL-13

KOKO HOTEL Hiroshima Ekimae

HTL-14

KOKO HOTEL Kagoshima
Tenmonkan

HTL-15

KOKO HOTEL Sapporo Odori

HTL-16

Best Western Plus Fukuoka
Tenjin-minami

Tsurumi-ku, Yokohama-Shi,
Kanagawa
Chuo-ku, Fukuoka-Shi,
FukuokaChiyoda-ku, Tokyo
Edogawa-ku, Tokyo
Naniwa-ku, Osaka-Shi,
Osaka
Abeno-ku, Osaka-Shi, Osaka

3,600

3,850

1.3

Chuo-ku, Tokyo
Chuo-ku, Sapporo-Shi,
Hokkaido
Chuo-ku, Fukuoka-Shi,
FukuokaMinami-ku, Hiroshima -Shi,
Hiroshima

17,80019,100

6.4

6,700

7,080

2.4

5,000

5,410

1.8

4,100

4,320

1.5

Kagoshima-shi, Kagoshima

3,800

4,280

1.4

4,200

4,270

1.5

3,800

4,410

1.4

Chuo-ku, Sapporo-Shi,
Hokkaido
Chuo-ku, Fukuoka-Shi,
FukuokaNote: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

27

HTL-17
HTL-18
HTL-19
HTL-20

KOKO HOTEL Tsukiji Ginza
KOKO HOTEL Residence Asakusa
Kappabashi
KOKO HOTEL Residence Asakusa
Tawaramachi
KOKO HOTEL Osaka Shinsaibashi

Chuo-ku, Tokyo

17,00018,800

6.1

Taito-ku, Tokyo

4,300

5,060

1.6

Taito-ku, Tokyo

5,900

6,780

2.1

Hotel Subtotal

7,500
102,494

7,990
71,2002.7
37.1

Real Estate Properties Total

273,699

303,506

99.0

Type

Interest
rate

Corporate bonds

Base rate
+5.0%

400

0.1

Base rate
+5.3%

430

0.2

Base rate
+7.3%

340

0.1

Trust beneficiary interest

Base rate
+5.0%

130

0.0

Preferred equity security

Lending
Fee: 4.0%

1,562

0.6

Chuo-ku, Osaka-shi, Osaka<Securities>
Asset No.

MEZ-07

MEZ-08

MEZ-09

TK-03

Name of the Security
Star Asia Mezzanine Loan Debt
Investment Series 7Star Asia Mezzanine Loan Debt
Investment Series 8Class A Beneficial InterestStar Asia Mezzanine Loan Debt
Investment Series 8Class B Beneficial InterestStar Asia Mezzanine Loan Debt
Investment Series 9
GSA JP Project 1
Tokutei Mokuteki
Kaisha (TMK) Preferred
Equity Securities

AcquisitionPrice(million yen)
(Note 2)

Investment
ratio
(%)
(Note 4)

Trust beneficiary interest

Securities Subtotal

2,862

1.0

Total

276,561100(Note 1)“Location” states the minimum individual administrative division in the region where the assets held by SAR as of today (hereinafter “Already Acquired Assets(Real Estate Etc.)”) and the Assets to be Acquired are located.
(Note 2) “Acquisition price” means the sale and purchase proceeds described in the sale and purchase agreement related to each already acquired assets, except for“Minami-Azabu Shibuya Building”, and “Planned Acquisition Price” means the planned sale and purchase proceeds as stated in the agreement signed with theSeller in relation to the Assets to be Acquired, and each price is stated by rounding the amounts of less than 1 million yen to the nearest 1 million yen. The
Acquisition Price and the Planned Acquisition Price do not include consumption tax, local consumption tax, or expenses required for acquisition. However, withrespect to “Minami-Azabu Shibuya Building”, as it is based on a sale and purchase agreement for multiple properties where no price is established for eachindividual property, the amount derived by prorating the total sales price of the multiple properties based on the ratio of the appraisal values of each individual
property as of the time of their acquisition is stated as the “Acquisition Price”. In addition, for the property succeeded by the merger, the appraisal value statedin the real estate appraisal report with the date of value as of the July 31, 2020, which is the accepted price, is stated.
(Note 3) The appraisal was commissioned to Japan Real Estate Institute, Daiwa Real Estate Appraisal Corporation and Tanizawa Sogo Appraisal Co., “Real estate appraisal
value” states the appraisal values stated in the real estate appraisal reports based on the price which is rounded to the nearest 1 million yen as the end of January
31, 2024, for Already Acquired Assets (Real Estate Etc.), and the appraisal value stated in the real estate appraisal report based on the price which is rounded to
the nearest 1 million yen as of July 1, 2024 with respect to “Urban Forum Warabi”, which was acquired on August 16, 2024 and the Assets to be Acquired.
(Note 4) ”Investment ratio” shows the ratio of the (planned) acquisition price of each of Already Acquired Assets (Real Estate Etc.), each of already acq uired assets(Securities) or Assets to be Acquired against the sum of the (planned) acquisition price for Already Acquired Assets (Real Estate Etc.), already acquired assets(Securities) and Assets to be Acquired rounded to the first decimal point.
Real estate investment corporations, under securities listing regulations of the Tokyo Stock Exchange (TSE), are only permitted to hold assets other than realestate etc., real estate-related assets and current assets up to a maximum of 5% of the total amount of assets under management. The ratio of “real estate etc.,
real estate-related assets and current assets” to the total amount of SAR’s assets under management after the Acquisition is expected to be no less than 95%. **Determined based on the amount calculated by deducting the book value as of January 31, 2024 of the assets already transferred or which SAR has decided totransfer as of today from the total assets of the balance sheet as of January 31, 2024, and then adding the acquisition price of “Urban Forum Warabi,” “Star Asia
Mezzanine Loan Debt Investment Series 9” and the Assets to be Acquired.
(Note 5) On January 1, 2024, the property name of “Seishin Building” has been changed to “Urban Center Shinjuku” and on April 1, 2024, the property name of “FINO
Hotel Sapporo-Odori” has been changed to “KOKO Hotel Sapporo-Odori” and the above chart has stated the property names after such changes. The same applies
below.
(Note 6) Property No. RSC-05 “Urban Park Namba” which is managed as of the date of this document, a sale and purchase agreement has been signed on August 2,
2024 to the effect that it will be transferred on September 6, 2024 has been excluded from the description of the portfolio after the Acquisition.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

28

Reference Material 3
Type

OfficeRetailResidence

Summary of earthquake risk analysis

Propertyno.

Property name

PML
(%)

OFC-01

Minami-Azabu Shibuya Building

11.6

OFC-03

Honmachibashi Tower

5.5

OFC-04

Nishi-Shinjuku Matsuya Building

5.5

OFC-06

Urban Center Shibuya East

7.2

OFC-08

Urban Center Yokohama West

6.2

OFC-09Hakata-eki East Place

4.7

OFC-10Nihonbashi Hamacho Park Building

7.4

OFC-11

Amusement Media Gakuin Honkan

7.6

OFC-12

Higashi-Kobe Center Building

8.6

OFC-13

Amusement Media Gakuin Shinkan

9.6

OFC-14

Urban Center Shinjuku

5.5

OFC-15

Urban Center Kanda Suda-cho

8.4

OFC-16

Urban Center Kanda Tsukasamachi

9.4

OFC-17

Takadanobaba Access

3.5

OFC-18

Azabu Amerex BLDG.

10.2

OFC-19Hiei-Kudan BLDG.

3.6

OFC-20Urban Center Shin-Yokohama

4.4

OFC-21The Portal Akihabara

8.2

OFC-22

Urban Center Tachikawa

4.5

OFC-23

Urban Center Hakata

3.6

OFC-24

Urban Center Fujisawa

9.7

RTL-01

La Park Kishiwada

14.8

RTL-02

Suroy Mall Chikushino

2.2

RTL-03

Seiyu Minakuchi

4.2

RTL-05

BAGUS Ikebukuro West

4.6

RTL-06abeno nini (Retail)6.2

RTL-07

Urban Forum Warabi

4.3

RSC-01

Urban Park Azabujuban

7.5

RSC-02

Urban Park Daikanyama

8.1

RSC-07

Urban Park Kashiwa

4.9

RSC-08

Urban Park Ryokuchi Koen

6.4

RSC-10Urban Park Ichigao

9.8

RSC-11

Urban Park Gyotoku

5.1

RSC-12

Shiroi Logiman

3.5

RSC-13

Urban Park Sekime

11.5

RSC-14

Urban Park Imazato

12.0

RSC-15

Urban Park Yoyogi

7.7

RSC-16

Urban Park Tokiwadai Koen

9.6

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

29

Logistics

RSC-17

Urban Park Mitsuike Koen

9.7

RSC-18

Urban Park Ryogoku

6.0

RSC-19Urban Park Mizonokuchi

10.4

RSC-20Urban Park Miyamaedairai

4.5

RSC-21

Urban Park Tsurumi

9.9

RSC-22

Urban Park Mitaka

7.6

RSC-23

Urban Park Kamata Minami I

4.3

RSC-24

Urban Park Kamata Minami II

8.0

RSC-25

Urban Park Umejima

2.6

LGC-01

Iwatsuki Logistics

3.9

LGC-02

Yokohama Logistics

13.0

LGC-03

Funabashi Logistics

5.7

LGC-04

Baraki Logistics

3.8

LGC-05Tokorozawa Logistics

9.5

LGC-07

Funabashi Nishiura Logistics II

2.9

LGC-08

Matsubushi Logistics

2.2

Funabashi Hi-Tech Park Factory Ⅰ

5.7

Funabashi Hi-Tech Park Factory Ⅰ(Building Extension Portion)

3.2

HTL-01R&B Hotel Umeda East

9.0

HTL-03REMBRANT STYLE Tokyo Nishikasai

9.0

HTL-04

BEST WESTERN Yokohama

11.1

HTL-05The BREAKFAST HOTEL FUKUOKA TENJIN

5.0

HTL-06

GLANSIT AKIHABARA

3.7

HTL-07REMBRANT STYLETokyo Nishikasai Grande

6.1

HTL-08

KOKO HOTEL Osaka Namba

6.7

HTL-09abeno nini (Hotel)

6.2

HTL-10

KOKO HOTEL Ginza 1-Chome

5.9

HTL-11

KOKO HOTEL Sapporo Ekimae

2.2

HTL-12

KOKO HOTEL Fukuoka Tenjin

4.3

HTL-13

KOKO HOTEL Hiroshima Ekimae

2.3

HTL-14

KOKO HOTEL Kagoshima Tenmonkan

6.5

HTL-15

KOKO HOTEL Sapporo Odori

4.2

HTL-16

Best Western Plus Fukuoka Tenjin-minami

3.2

HTL-17

KOKO HOTEL Tsukiji Ginza

5.1

HTL-18

KOKO HOTEL Residence Asakusa Kappabashi

3.0

HTL-19KOKO HOTEL Residence Asakusa Tawaramachi

3.1

HTL-20

KOKO HOTEL Osaka Shinsaibashi

14.7

LGC-09Hotel

Entire portfolio (74 properties) (Note)

2.4(Note)The figure in the entire portfolio column is the PML for the entire portfolio of the Already Acquired Assets (Real Estate Etc. and the Assets to be Acquired (portfolio
PML) as of the date of this document based on “portfolio earthquake risk evaluation report” prepared by Tokio Marine dR Co., Ltd. dated June 2024.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

30

Reference Material 4 Location maps / photos
HTL-17 KOKO HOTEL Tsukiji Ginza

HTL-18 KOKO HOTEL Residence Asakusa Kappabashi / HTL-19

KOKO HOTEL Residence Asakusa Tawaramachi

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

31

HTL-20

KOKO HOTEL Osaka Shinsaibashi

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

32

Reference Material 5 The terms used in the table of Description of Assets to be Acquired(a) Explanation on “Property no.” and “Type”
Property Number column and Type column: Each of the Assets to be Acquired and the Already Acquired Assets(Real Estate Etc.) by SAR is categorized by use of OFC (office), RTL (commercial / retail), RSC (residence), LGC(logistics), or HTL (hotel). Then, for each category, serial numbers are given to the assets in the category. In case ofa property which could straddle two or more categories, it shall fall under the category from which the property
generates the largest sum of assumed rent income.
(b) Explanation on “Asset no.”Asset Number: Each of already acquired assets (Securities) acquired by SAR is categorized by mezzanine loan debt
(MEZ), anonymous association investment or preferred securities (TK) and serial number is given to the assets inthe category.
(c) Explanation on “Overview of specified asset”
a. “Planned Acquisition price” column: Herein is shown the sale price of the Assets to be Acquired as described in
the purchase and sale agreement of the Assets to be Acquired (excluding consumption taxes, local consumption
taxes, and expenses necessary for the acquisition), after rounded to the nearest million yen.
b. “Planned Acquisition Date” column: Herein is shown the planned MMDDYY of acquisition by SAR.
c. “Location” column: Herein is shown the certified address in registry. “Indication of residential address” column:
Herein is shown the postal address.
d. “Land” column:i.
“Type of ownership” column: Herein is shown the type of right(s) held by respective trustee of the Assets to
be Acquired.
ii.
“Site area” column: Herein is shown the land area as recorded in registry, unless otherwise noted. For thisreason, it possibly might not be equal to the actual.
iii.
“Use district” column: Herein is shown the type of use in accordance with Article 8, Paragraph 1 and Item 1of the Urban Planning Act (Act No.100 of 1968; including its amendments) (“Urban Planning Act”).
iv.
“Building coverage ratio” column and “Floor area ratio” column: Herein is shown the pertinent figure ineach column in accordance with the relevant laws and regulations (the Building Standards Act, the Urban
Planning Act, etc.)
e. “Building” column:i.
“Type of ownership” column. Herein is shown the type of right(s) held by respective trustee of the Assets to
be Acquired.
ii.
“Total floor area” column: Herein is shown the sum total of floor areas as recorded in registry, unlessotherwise noted. For this reason, it possibly might not be equal to the actual figure.
iii.
“Use” column: Herein is shown the registered use or, if multiple uses are registered the representative usefrom what are recorded in registry, it possibly might not be equal to the actual representative use. As for thebuilding with compartmentalized ownership, the type of use for the exclusively owned space by SAR isshown.
iv.
“Construction completion” column: Herein is shown MMDDYY of the representative building first built asrecorded in registry.
v.
“Structure and floors” column: Herein is shown the structure and number of floors of the representativebuilding, etc. as recorded in registry. It possibly might not be equal to the actual structure and number offloors. As for the building with compartmentalized ownership, the structure and the number of floors forthe entire building are shown.
f. “Property management company” column: Herein is shown the name of property management company (“PMCompany”), to which property management operation is (planned to be) entrusted as of today.
g. “Master lease company” column: Herein is shown the name of the master lease company, to which master lease
operation is (planned to be) entrusted, as of today.
h. “Type of master lease” column: Herein is shown whether the property is a pass-through master lease or a rentguaranteed master lease.
i. “Security” column: Herein is shown a summary of the security, if any, to be borne by SAR.
(d) Explanation on “Status of leasing”
a. “Total leasable area” column: Herein is shown the sum total of leasable floor areas of buildings of the Assets to
be Acquired (in case common space is also leased, area of that space is included in the total). The figure does notinclude the area of the land lots leasable for parking and other purposes. Leasable area is counted not from registrydata but from area data as described in lease agreements or from area data as calculated by using the architectural
drawings of the buildings, so it possibly might not be equal to the total floor area as recorded in registry.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

33

Please note that, unless noted otherwise, the source data for the column represent what were provided by thecurrent owner(s) of the Assets to be Acquired as of April 30, 2024. With respect to the Assets to be Acquired, thefigures stated are based on each lease agreement expected to be signed after SAR acquires the properties (thesame applies hereinafter, under the “Status of Leasing” sections, unless otherwise stated in the annotations).
b. “Total leased area” column: Herein is shown the sum total of the floor areas to be leased as described in leaseagreement for each of the Assets to be Acquired as of April 30, 2024 out of the leasable area. The figure does notinclude the area of the land lots to be leased for parking and other purposes. Please note that the source data forthe column represent what were provided by the current owner(s) of the Assets to be Acquired as of April 30,
2024.
c. “Occupancy rate” column: Herein is shown the percentage of total leased floor area over the total leasable floorarea of the Assets to be Acquired, after rounded to the first decimal point. Please note that the source data for thecolumn represent what were provided by the current owner(s) for the Assets to be Acquired as of April 30, 2024.
d. “Total number of tenants” column: Herein is shown the total number of tenants as confirmed with the leaseagreements effective as of April 30, 2024 of the Assets to be Acquired. In case a specific tenant uses two or morerooms in one of the Assets to be Acquired, such tenant is counted only once for the asset. Also, in case a specifictenant signs lease agreements for rooms in two or more assets, the tenant shall be counted for each of the assets
separately. In case a pass-through type of master lease agreement is executed for any of the Assets to be Acquired,total number of the actual (end) tenants under the master lease agreement for the asset is shown herein.
e. “Monthly rent (including common area maintenance fee)” column: Herein is shown the total of rent amounts as
described in lease agreements with respective tenants as of April 30, 2024 (confined to room rents; excluding thecharges for warehouses, sign boards and parking lots; but including the common service expenses; and free rent
cases as of the same date are not considered), after rounded to the nearest thousand yen. With respect to the
Assets to be Acquired, as of the date of this document, it is written as “－”, because the properties are managed by
the sellers by signing management entrustment agreements.
f. “Security and guarantee deposits” column: Herein is shown the sum total of refundable deposits as required inlease agreements effective as of April 30, 2024 (only for the tenants who actually were in respective rooms at thetime) of the Assets to be Acquired. In case a pass-through type of master lease agreement is executed for any of
the Assets to be Acquired, total amount of refundable deposits as described in the individual lease agreementswith respective (end) tenants is calculated to be shown in the column.
(e) Explanation on “Special notations”
Special notation column: Herein is shown a description not only on the items considered material in relation to theinvolved rights and assumed uses but also the other items considered material in relation to appraisal value of,profitability of, and disposability of the Assets to be Acquired.
(f) Explanation on “Summary of real estate appraisal report”
a. “Summary of real estate appraisal report” column: Herein is shown a summary of respective appraisal report,
which was prepared either by Japan Real Estate Institute for the Assets to be Acquired. If there are multiple
discount rate, the discount rate the appraiser adopted taking the current operating status into consideration isstated.
b. “Appraisal value” column: Herein is shown only the opinions on the value of respective property as of the dateof appraisal, expressed by the appraiser who did the appraisal of the property, in accordance with the Act on Real
Estate Appraisal (Act No.152 of 1963; including its amendments) and commonly accepted appraisal standards forreal estate properties, etc.
c. In case appraisal is once again undertaken for the same property, its result could be different from the previous
result because appraiser and/ or appraisal method and/ or appraisal timing is different. Also, it is requested to notethat any appraisal result for any property is not what guarantees or promises the actual tradability of the property
at the appraised value whether for right now or for any moment in the future.
d. None of Japan Real Estate Institute who conducted appraisal is an interested party of neither SAR nor the AssetManager.
(g) Explanation on “Property Features/ Key Points of Evaluation”
The basic characteristics, features, etc. of the property are described based on the Asset Manager's own
investigation, in reference to real estate appraisal reports and market reports, etc.

This is an English translation of the announcement in Japanese dated August 19, 2024. However, no assurance orwarranties are given for the completeness or accuracy of this English translation.
Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose ofannouncing to the public certain matters relating to the acquisition and lease contract with new tenants, and not for the purpose of soliciting any investment, withinor outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. SAR’s securities have not been, and will not be registeredunder the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned
acquisitions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

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