March 16, 2023
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 the Transfer of Trust Beneficial Interests of Domestic Real Estate(Urban Park Gokokuji)Star 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 transfer the domestic real estate
trust beneficial interest of “Urban Park Gokokuji” (hereinafter referred to as the "Asset to be Transferred", andthe transfer of the Asset to be Transferred is referred to as the “Transfer”) as described below.
1.

Summary of Transfer(1)
Asset to be Transferred
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)

Property nameLocation (Indication of residential address)
Asset type
Expected sales price (Note 1)
Book value (Note 2)
Anticipated gain on transfer (Note3)
Date of transfer decision
Signing date of sale and purchase agreement
Planned transfer date (Note 4)

(11)
(12)
(13)
(14)

Date of Receipt of Proceeds (Note 4)
Planned purchaser
Existence of intermediary
Use of sales proceeds

Trust beneficial interest in which the main
entrusted asset is domestic real estate
Urban Park Gokokuji
1-5-4 Zoushigaya, Toshima-ku, Tokyo
Residence
1,800 million yen
1,494 million yen
271 million yen
March 16, 2023
March 16, 2023
August 31, 2023 or such other date to be
separately agreed by SAR and the purchaser
Planned transfer date
A.D.Works corporation

Yes (Note 5)
The remaining proceeds to be appropriated to
cash-on-hand to be used mainly as funds for future
property acquisitions. We will consider using theproceeds for the acquisition of preferred securities
as described in the "Notice Concerning signing ofRight of First Refusal Agreement for Acquisition ofAssets (Preferred Equity Securities) and Receipt ofa Letter of Intent regarding Lending of thePreferred Equity Securities (HAKUSAN HOUSE)"

1

(15)

announced today.
92,742,300 yen to be received as deposit money on
the signing date of sale and purchase agreement,
land the remaining amount is to be received in
lump-sum payment on the planned transfer date.

Settlement method(Note 1) This figure is the sales price of the Asset to be Transferred which is stated in the trust beneficial interest
sale and purchase agreement for the Asset to be Transferred (and does not include various sale related
expenses or consumption tax).
(Note 2) “Book Value” represents the book value as of July 31, 2022.
(Note 3) The anticipated gain on transfer is calculated by deducting anticipated book value and expenses related
to the disposition from transfer price, rounded down to the nearest million yen.
(Note 4) This is the transfer date which is stated in the trust beneficial interest sale and purchase agreement.
(Note 5) The intermediary of the Transfer does not fall under “interested persons, etc.” as defined under theOrder for Enforcement of the Act on Investment Trusts and Investment Corporations or “Interested
Parties” as defined in the “Rules on Transactions with Interested Parties” which are internal rules of theAsset Manager.

2.

Reason for the Transfer
SAR and the Asset Manager are constantly aiming to maximize unitholders’ interests, and are pursuing
various possibilities to strengthen the portfolio, such as by improving the profitability of individual properties
being managed through redevelopments, and realizing the potential value of properties through asset
replacement and accompanying sale of such properties.
The Asset to be Transferred is located at a 7-minute walking distance from “Zoushigaya” station on theTokyo Metro Fukutoshin Line, in an area where many universities and junior colleges are concentrated, andalso given good access to the commercial center of Ikebukuro etc. by using the Tokyo Metro Fukutoshin Lineand Yurakucho Line, the property is a single-type residence which is attractive to mainly students and the
younger generation workforce for single use. Although occupancy rates became lower for a certain period
during 2021given the impact of COVID-19, due to implementation of various measures to improve theoccupancy rates, currently it has recovered.
On the other hand, with respect to the Asset to be Transferred, given that increases in the life-cycle costs
such as repair costs and capital expenditures were envisioned for the future, SAR had the recognition that itwas necessary to take drastic measures in order to improve the property’s profitability.
Under this recognition, SAR and the Asset Manager have continued to consider both of the following two
options: (1) reconstruction etc. through redevelopment based on the premise of continued holding of theproperty, and (2) securing funds for future external growth by property sale and realizing a gain-on-sale.
From SAR’s perspective, as a result of comparing and verifying both (1) and (2) stated above, SAR has
determined that realizing a gain-on-sale through sale of the Asset to be Transferred and securing the sales
proceeds for funding future growth would contribute to maximization of unitholders’ interests.
T Furthermore, if the transfer of the Property is realized, SAR intends to position the transaction together
with the asset expected to be acquired described in the announcement made today entitled “NoticeConcerning signing of Right of First Refusal Agreement for Acquisition of Assets (Preferred Equity Securities)
and Receipt of a Letter of] Intent regarding Lending of the Preferred Equity Securities (HAKUSAN HOUSE)” as
the 9th asset replacement.

2

3.

Description of Asset to be Transferred

PropertyNo.

RSC-06

Property

Urban Park Gokokuji

nameCategory

Residence

Overview of the specified asset
Type of specified asset

Beneficial interest in trust

Trustee

Expected sales price1,800 million yen

Planned transfer date

Location

1-346-1 Zoushigaya, Toshima-ku, Tokyo

Indication of residential
address
Nearest station
Form ofLand

ownership
Site area

August 31, 2023 or such other date to be
separately agreed by SAR and the purchaser

1-5-4 Zoushigaya, Toshima-ku, Tokyo
Approx. 7-minute walk from Zoushigaya Station on the Tokyo Metro Fukutoshin Line
Proprietary ownership
942.66㎡ (note1)

Building
coverage

Sumitomo Mitsui Trust Bank

Neighborhood commercial

Use district

zone

Floor area ratio

80 %300 % (Note2)

ratio
Building

Form ofownership
Total floor
area

Proprietary ownership

Construction February 28, 1990
completion
Property management

Apartment complex, office, parking,Use

2,451.72㎡

warehouses, building manager room

Structure and floors

Reinforced concrete structure
1 floor below ground / 5 floors above ground

Haseko Livenet Inc.

Master lease company

Haseko Livenet Inc.

Type of master lease

Pass-throughSecurity

Unsecured

Trust expiration date

January 31, 2027

(PM) company

Status of leasing (as of the end of January 2023)
Total leasable area

Total leased area
Security and guarantee
deposits

Total number of

1,964.04㎡

tenants

106

Monthly rent (including

1,898.52

common area㎡

JPY 7,985,000

maintenance fee)

JPY 3,729,000

Occupancy rates
September 2022
98.3 %
Special notation

October 2022
99.2%

November 2022
99.3%

December 2022

January 2023

95.8 %

Not applicable.

(Note 1) 50.85m2 of the site area has been provided to Toshima ward as a road (special ward road) free of charge.
(Note 2) Due to the building standing on two different use districts (neighborhood commercial zone and category 1

medium-to-high-rise exclusive residential zone) and the width of the front road, the permitted weighted averaged
floor area ratio is 278.68%.

3

96.7 %

4.

Impact on SAR’s finance in the case where the forward commitments etc. are not performed.
The Transfer falls under forward commitment etc. by an investment company (Note 1) as set forth in the“Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.” prescribed by
the Financial Services Agency.
Each of SAR and the planned purchaser may, in the case where either party breaches the provisions of thesale and purchase agreement for the Transfer (the “Agreement”) or breaches representations or warranties, andsuch breach violation is material to the extent that it is recognized that the purpose of the Agreement cannot
be achieved due to such breach, the non-breaching party may make a demand to terminate the Agreement tothe violating party by providing for a reasonable period, and may claim penalty money for 20% worth of thesales proceeds of the Asset to be Transferred.
SAR is of the view that the probability that the forward commitment etc. related to the assignment of theproperty under the Transfer would have a material impact on SAR’s finances and distribution payments is low.
(Note 1) This refers to forward dated sale and purchase agreements, where it is intended that settlement ordelivery is to occur after 1 month or more from the date of signing of the agreement, and any othersimilar agreements.

5.

Profile of the planned purchaser

Name

A.D.Works corporation

Location

2-2-3 Uchisaiwai-cho, Chiyoda-ku, Tokyo

Representative

CapitalChief Executive Officer Hideo Tanaka
1. Sale of real estate and brokerage service.
2. Leasing, supervision, holding and management services of real estate.
3. Real estate appraisal service.
4. Consulting work related to real estate.
5. Consulting work related to personal property.
6. Civil engineering, measurement, and design services.
7. Civil engineering and construction works.
8. Management of a registered architect office.
9. to 30． Omitted
31. All businesses incidental to the above.
100,000,000 yen

EstablishedMay 5, 1936

Main business description

Net asset
Total asset
Major shareholders and

The information is undisclosed as consent to disclosure has not been obtained from the company.

shareholding ratio
Relationship with SAR or the Asset Manager
Capital relationship
Personnel
relationship
Businessrelationship
Related party or not

There is no capital relationship to report.
There is no personnel relationship to report.
In the 12th fiscal period (ended January 31, 2022), SAR has signed a sale and purchase agreement
for acquisition of real estate property with the said company, and has acquired 1 property. Other
than this property, there are no business relationships to report.
The company does not fall under the category of interested person, etc. of SAR or the AssetManager.

4

6.

Future outlook
The Transfer is included in the assumptions underlying management status forecast announced in the“Financial Report for Fiscal Period Ended January 31, 2023” dated March 16, 2023, and thus there are no
revisions to the management status forecasts for the fiscal period ending July 2023 (February 1, 2023 toJuly 31, 2023) and for the fiscal period ending January 2024 (August 1, 2023 to January 31, 2024).

7.

Summary of Appraisal Report(Unit: Yen)
Summary of Real Estate Appraisal Report
Property nameUrban Park Gokokuji

Appraisal value

1,570,000,000

Appraisal firm

Japan Real Estate Institute

Date of value

January 31, 2023
Item

Indicated value by income approach
Indicated value of direct
capitalization approach

Details
1,570,000,000

Description, etc.
Calculated by linking the value based on the direct capitalization method and thevalue based on the DCF method.

1,580,000,000(1) Operating revenue ((a)−(b))

93,144,000(a)Gross potential income

99,950,000

Appraised the rent level which can be stably received in the mid- to long-term, basedon the current rent levels and new rents etc. assuming new leases,
Appraised taking into consideration the occupancy status of the subject real estate(b) Vacancy loss, etc.

6,806,000

properties, the occupancy status of similar real estate properties, and future estimateof supply and demand.

(2) Operating expenses
Maintenance and management
Fee
Utilities expenses

32,092,000
6,716,000

4,600,000

Repair expenses

Appraised by referring to the actual recorded amounts and levels at similar real estate
properties.
Appraised by referring to the actual recorded amounts and levels at similar real estate
properties.
Appraised by referring to the actual recorded amounts of restoration-to-original-state

7,028,000

costs and repair costs, repair and renewal costs in the ER, and levels at similar realestate properties.

Property management fee

Tenant leasing cost, etc.

Taxes and other publiccharges
Insurance premium

Other expenses(3) Net operating income(NOI = (1)−(2))(4) Investment profits from
deposits(5) Capital expenditures

1,784,000

7,505,000

3,828,000

121,000
510,000

Appraised by referring to the contract conditions, and levels at similar real estate
properties.
Appraised by referring to actual recorded amounts, the contract conditions, and levels
at similar real estate properties.
Appraised by taking into account the actual recorded amounts, and the contents etc.
of tax burden adjustment measures.
Appraised by referring to the insurance contracts and levels at similar real estate
properties.
Internet usage fee has been recorded.

61,052,000

24,0005,750,000

The investment yield appraised at 1.0%.
Appraised taking into account the repair and renewal costs of the ER, and levels at

5

similar real estate properties.
(6) Net cash flow
(NCF = (3)+(4)−(5))(7) Capitalization rate

Indicated value of DCF method

3.5%

Appraised by comprehensively taking into account competitiveness etc. of the subject
real estate property.

1,560,000,000

Discount Rate

3.3 %Terminal capitalization rate

3.6 %Indicated value by cost approach

8.

55,326,000

1,110,000,000

Ratio of land

87.3 %

Ratio of building

12.7 %

Appraised by comprehensively taking into account competitiveness etc. of the subject
real estate property.
Appraised by comprehensively taking into account future trends, risks of the subject
real estate property, and market risks etc.
Calculated by multiplying the market correction rate to the total of the land price andthe building price.

Matters considered in reconciliation of indicated values and

The appraisal value was determined by adopting the income approach value, and thedetermination of appraisal values

value based on the cost approach was used as reference only.

Other matters necessary for investors to appropriately understand the relevant information and makedecisionsConcerning risks related to the Transfer, there are no changes to the contents described in “Part I: Fund
Information / Section 1 - Status of the Fund / 3. Investment Risks” of the Securities Report submitted on
October 28, 2022.

6

<Other press releases announced today>・(REIT) Financial Report for Fiscal Period Ended January 31, 2023
・Notice Concerning Signing of Building Lease Option Agreement Presupposing Extension of the Building(Funabashi Hi-tech Park Factory I)
・Notice Concerning signing of Right of First Refusal Agreement for Acquisition of Assets (Preferred Equity
Securities) and Receipt of a Letter of Intent regarding Lending of the Preferred Equity Securities (HAKUSAN
HOUSE)
・Notice Concerning Partial Amendment to the Management Guidelines of the Asset Manager<Appendix>
・Reference Material 1
・Reference Material 2・Reference Material 3

Summary of portfolio after the Transfer
Portfolio list after the Transfer
General Description of Asset to be Transferred – Explanation of various
terms＊ Star Asia Investment Corporation website address:

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

This is an English translation of the announcement in Japanese dated March 16, 2023. However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

7

Reference Material 1

Summary of portfolio after the Transfer etc.

The status of the portfolio after the transfer of the Asset to be Transferred and after acquiring the Class A
Beneficial Interests and Class B Beneficial Interests under the Mezzanine Loan Debt Investments as described in
the press release announced on February 1, 2023 entitled “Notice Concerning Acquisition of Mezzanine Loan
Debt - Star Asia Mezzanine Loan Debt Investment Series 8 (Class A Beneficial Interest and Class B Beneficial
Interest)” is as follows.
Furthermore, the Asset Manager has effective today amended a part of the Management Guidelines which areinternal rules of the Asset Manager. For details, please refer to the press release announced today entitled“Notice Concerning Partial Amendment to the Management Guidelines of the Asset Manager”.
<By Asset type (use)>
Asset type (use)Number of Properties

OfficeTotal Acquisition Price

Ratio (%)

(in million yen)

(Note 1)

21

74,787

38.6

Retail527,754

14.3

Residence

18

36,31918.7

Logistics

8

29,663

15.3

Hotel
Total

11

25,31413.1

63

193,837

100.0<By Region>
RegionTotal Acquisition Price

Ratio (%)

(in million yen)

(Note1)

Greater Tokyo Area (Note 2)

132,834

68.5

Major

61,00331.5

22,71011.7

193,837

100.0

Metropolitan

Other Ordinance-

Areas

Designated Cities Etc.
TOTAL

(Note 1) Ratios have been calculated based on the total acquisition price, and stated by rounding to the 2 nd decimal place.
Therefore, ratios may not add up to 100%.
(Note2) The figure includes mezzanine loan debt investments (2 transactions).
(Note3) The investment ratio for the Greater Tokyo Area excluding the 3 suburban-type retail facilities for which our policy is
to dispose of is 74.4%.

8

Reference Material 2 Portfolio list after the Transfer<Real Estate, etc.>
Acquisition
PropertyNo.

Location

Property Name

(Note 2)

(Note 1)Price(in million
yen)(Note 3)

Real estateappraisal

Investment

value

ratio

(in million

(%)

yen)

(Note 5)(Note 4)

OFC-01

Minami-Azabu Shibuya Building

Minato-ku, Tokyo

2,973

3,040

1.5

OFC-03

Honmachibashi Tower

Chuo-ku, Osaka-Shi, Osaka

6,065

7,090

3.1

OFC-04

Nishi-Shinjuku Matsuya Building

Shibuya-ku, Tokyo

1,763

2,660

0.9

OFC-06

Shibuya MK Building

Shibuya-ku, Tokyo

2,042

3,290

1.1

6,320

8,390

3.3

2,286

3,140

1.2

Kanagawa-ku, Yokohama-

OFC-08Asahi Building

OFC-09Hakata-eki East Place

OFC-10Nihonbashi Hamacho Park Building

Chuo-ku, Tokyo

1,450

1,500

0.8

OFC-11

Amusement Media Gakuin Honkan

Shibuya-ku, Tokyo

2,580

2,790

1.3

7,440

7,320

3.9

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

Higashinada-ku,

OFC-12

Higashi Kobe Center Building

OFC-13

Amusement Media Gakuin Shinkan

Shibuya-ku, Tokyo

1,020

1,240

0.5

OFC-14

Seishin BLDG.

Shinjuku-ku, Tokyo

11,20011,7005.8

OFC-15

Urban Center Kanda Suda-cho

Chiyoda-ku, Tokyo

5,350

5,440

2.8

OFC-16

Urban Center Kanda Tsukasamachi

Chiyoda-ku, Tokyo

4,590

4,630

2.4

OFC-17

Takadanobaba AccessShinjuku-ku, Tokyo

3,990

3,990

2.1

OFC-18

Azabu Amerex BLDG.

Minato-ku, Tokyo

2,780

2,910

1.4

OFC-19Hiei-Kudan BLDG.

Chiyoda-ku, Tokyo

2,400

2,390

1.2

OFC-20Urban Center Shin-Yokohama

Yokohama-Shi, Kanagawa

2,300

2,590

1.2

OFC-21The Portal Akihabara

Chiyoda-ku, Tokyo

1,510

1,490

0.8

OFC-22

Urban Center Tachikawa

Tachikawa-Shi, Tokyo

1,804

1,980

0.9

OFC-23

Urban Center Hakata

2,870

3,200

1.5

OFC-24

Urban Center Fujisawa

Fujisawa-Shi, Kanagawa

2,054

2,200

1.1

74,787

82,980

38.5

RTL-01

La Park Kishiwada

Kishiwada-Shi, Osaka

5,400

5,240

2.8

RTL-02

Suroy Mall Chikushino

Chikushino-Shi, Fukuoka

6,550

6,290

3.4

RTL-03

Seiyu Minakuchi

Koka- hi, Shiga

3,320

3,330

1.7

RTL-05

BAGUS Ikebukuro West

Toshima-ku, Tokyo

2,984

3,410

1.5

RTL-06abeno nini (Retail)

9,500

10,1004.9

27,75428,370

14.4

Kobe-Shi, Hyogo

Hakata-ku, Fukuoka-shi,
Fukuoka
Office Subtotal

Abeno-ku, Osaka-Shi,
Osaka
Retail Subtotal

RSC-01

Urban Park Azabujuban

Minato-ku, Tokyo

2,045

2,930

1.1

RSC-02

Urban Park Daikanyama

Shibuya-ku, Tokyo

6,315

10,100

3.3

1,490

1,550

0.8

1,186

1,200

0.6

RSC-05

Urban Park Namba

RSC-07

Urban Park Kashiwa

Naniwa-ku, Osaka-Shi,
Osaka
Kashiwa-Shi, Chiba

9

RSC-08

Urban Park Ryokuchi Koen

Suita-Shi, Osaka

1,550

1,720

0.8

RSC-09Urban Park Koenji

Suginami-ku, Tokyo

1,167

1,180

0.6

RSC-10Urban Park Ichigao

1,810

2,170

0.9

RSC-11

Urban Park Gyotoku

Ichikawa-Shi, Chiba

1,430

1,600

0.7

RSC-12

Shiroi Logiman

Shiroi-Shi , Chiba

2,470

2,520

1.3

RSC-13

Urban Park Sekime

Osaka-Shi, Osaka

2,150

2,460

1.1

RSC-14

Urban Park Imazato

Osaka-Shi, Osaka

993

1,100

0.5

RSC-15

Urban Park Yoyogi

Shibuya-ku, Tokyo

1,740

1,990

0.9

RSC-16

Urban Park Tokiwadai Koen

3,506

3,960

1.8

RSC-17

Urban Park Mitsuike Koen

3,160

3,580

1.6

RSC-18

Urban Park Ryogoku

1,115

1,280

0.6

RSC-19Urban Park Mizonokuchi

2,019

2,100

1.0

RSC-20Urban Park Miyamaedaira

1,060

1,260

0.6

RSC-21

Urban Park Tsurumi

1,113

1,190

0.6

37,77942,480

18.9

6,942

7,690

3.6

3,560

4,340

1.8

Aoba-ku, Yokohama-Shi,
Kanagawa

Hodogaya-ku, YokohamaShi, Kanagawa
Tsurumi-ku, YokohamaShi, Kanagawa
Sumida-ku, Tokyo
Takatsu-ku, Kawasaki-Shi
Kanagawa
Miyamae-ku, Kawasaki-Shi
Kanagawa
Tsurumi-ku, Yokohama-Shi
Kanagawa
Residence Subtotal
Iwatsuki-ku, Saitama-Shi,

LGC-01

Iwatsuki Logistics

LGC-02

Yokohama Logistics

LGC-03

Funabashi Logistics

Funabashi-Shi, Chiba

7,875

8,930

4.1

LGC-04

Baraki Logistics

Ichikawa-Shi, Chiba

4,700

5,030

2.4

LGC-05Tokorozawa Logistics

Tokorozawa-Shi, Saitama

1,300

1,550

0.7

LGC-07

Funabashi Nishiura Logistics II

Funabashi-Shi, Chiba

821

891

0.4

LGC-08

Matsubushi Logistics

Kitakatsushika, Saitama

2,755

3,240

1.4

LGC-09Funabashi Hi-Tech Park Factory I

Funabashi-Shi, Chiba

1,710

1,710

0.9

Logistics facility Subtotal

29,66333,510

15.4

Kita-ku, Osaka-Shi, Osaka

2,069

2,280

1.1

1,750

1,440

0.9

3,827

3,470

2.0

3,248

3,210

1.7

1,970

1,920

1.0

HTL-01R&B Hotel Umeda East

HTL-02

Smile Hotel Namba

HTL-03REMBRANDT STYLE Tokyo Nishikasai

HTL-04

BEST WESTERN Yokohama

HTL-05
HTL-06
HTL-07
HTL-08

Saitama
Kanagawa-ku, YokohamaShi, Kanagawa

Naniwa-ku, Osaka-Shi,
Osaka
Edogawa-ku, Tokyo
Tsurumi-ku, YokohamaShi, Kanagawa

The BREAKFAST HOTEL FUKUOKA

Chuo-ku, Fukuoka-Shi,

TENJIN

Fukuoka

GLANSIT AKIHABARA

Chiyoda-ku, Tokyo

2,500

2,440

1.3

Edogawa-ku, Tokyo

3,180

3,140

1.7

2,000

1,420

1.0

REMBRANDT STYLE Tokyo Nishikasai
Grande
KOKO HOTEL Osaka Namba

Naniwa-ku, Osaka-Shi,
Osaka

10

HTL-09

Abeno-ku, Osaka-Shi,

abeno nini (Hotel)(Note 1)

3,600

3,690

1.9

Hotel Subtotal

24,14423,010

12.5

Total

192,667

211,630

100.0

Osaka

“Property No” categorizes the assets held by SAR by offices (OFC), retail (RTL), residences (RSC), logistics (LGC), and hotels (HTL), andnumbers the properties separately for each category. The same applies below.

(Note 2)

“Location” states the minimum individual administrative division in the region where the held assets are located.

(Note 3)

” Acquisition price” means the sale and purchase proceeds (excluding consumption tax) described in the sale and purchase agreement
related to each held asset. With respect to “Minami-Azabu Shibuya Building”, as it is based on a sale and purchase agreement for
multiple properties where no price is established for each individual property, the amount derived by prorating the total sales priceof the multiple properties based on the ratio of the appraisal values of each individual property as of the time of their acquisition isstated as the “Acquisition Price”. Also, for real estate properties which were succeeded to as a result of the merger, the appraisal value
stated in the real estate appraisal report which indicates the value as of July 31, 2020 which is the acceptance price is stated.

(Note 4)

” Real estate appraisal value” states the appraisal values stated in the real estate appraisal reports based on the price as of January
31, 2023.

(Note 5)“Investment ratio” shows the ratio of the (planned) acquisition price of each of acquired assets or Assets to be Acquired against thesum of the acquisition price for acquired assets (real estate etc.) or the planned acquisition price for Assets to be Acquired, rounded
to the first decimal place.

<Mezzanine Loan Debt Investments>
The table below includes the acquisition of Class A and Class B beneficial interests under the mezzanine loan debt
investments described in the press release announced on February 1, 2023, entitled “Notice Concerning Acquisition of

Mezzanine Loan Debt - Star Asia Mezzanine Loan Debt Investment Series 8 (Class A Beneficial Interest and Class B
Beneficial Interest)”.

Investment
Asset no.

Asset type

ratio (%)

Asset name(Note 1)

Acquisition

Investment
price (million Interest rate ratio to theentire(Note 3)yen)
portfolio (%)(Note 4)(Note 2)

MEZ-07

MEZ-08Mezzaninebonds

Beneficiaryinterest in
trustStar Asia Mezzanine Loan Debt Investment
Series 7－ Haneda Hotel Development GK Series 2
Item A Unsecured Bonds －34.2

Star Asia Mezzanine Loan Debt Investment
Series 8－ Centurion Two GK Class B Beneficiaryinterest in trust－

29.1

Star Asia Mezzanine Loan Debt Investment
Series 8－ Centurion Two GK Class A Beneficiaryinterest in trust－

36.8

Mezzanine loan debt investments

Total

Base rate
400(Note 5)

0.2

+5.0%
Base rate
340(Note 5)

0.2

+7.3%
Base rate
430(Note 5)

0.2

+5.3%
100.0

1,170

－

0.6

(Note 1) “Investment ratio” is the acquisition price expressed as a percentage of the sum total of mezzanine loan debt.
(Note 2) “Acquisition price” is the sale and purchase price in the bond transfer agreement and the sale price of beneficiaryinterest in the beneficiary interest transfer agreement (each does not include transfer-related costs), each rounded
down to the nearest million yen.
(Note 3) “Interest rate” is the interest rate for bonds, and the dividend ratio for trust beneficial interests.

11

(Note 4) “Investment ratio to the entire portfolio” is the ratio of the acquisition price of each mezzanine loan debt as apercentage of the sum total of acquisition price of the portfolio (including the mezzanine loan debt) after the Transferof the Assets to be Transferred(Note 5) Base rate is JBA 3-month JPY TIBOR. The Japanese yen TIBOR can be confirmed on the website of the JBA TIBOR
Administration (http://www.jbatibor.or.jp/english/rate/). For each interest calculation period, the rate announced at
11 a.m. (Tokyo time) two business days prior to the last day of the previous calculation period of the relevant
calculation period will be applied as the base rate.

12Reference Material 3: General Description of Asset to be Transferred – Explanation of various terms(A)

Explanations of the “Property No.” and “Category” columns
The “Property No.” and “Category” columns states the numbering of the Asset to be Transferred by SAR,
which categorizes the assets by as offices (OFC), retail (RTL), residences (RSC), logistics, (LGC), and hotels(HTL), and then numbers the assets according to each category. In the case where a single property is acomplex facility with multiple uses, such property is categorized within the asset category with thehighest assumed total rent revenue.

(B)

Explanation of the “Overview of the Specified Asset” sectiona.

The “Trust expiration date” column states the trust expiration date stated in the agreement existing
as of the day of this announcement.

b.

The “Expected sales price” column states the sales proceeds for the Asset to be Transferred asstated in the sale and purchase agreement for the Asset to be Transferred (which does not include
consumption tax and expense required for the acquisition), rounded to the nearest 1 million yen.

c. The “Planned transfer date” column states the date on which SAR expects to execute the assignment.
d. The “Location” column states the lot number address as indicated in the real estate registry. The“Indication of residential address” column states the indication of the residential address, andwhere the indication of residential address has not been implemented, the location of the building
found in the real estate registry has been stated (if there are multiple locations, one of them has
been stated).
e.

The “Indication of Residential Address” column states the indication of residential address, or ifsuch indication of residential address has not been defined and the register describes multiple
locations of the buildings, only one of such locations is stated.

f.

Explanations of the “Land” section(i) The “Form of ownership” column states the type of right held by the trustee with respect to
the Asset to be Transferred.
(ii) The “Site area” column state the parcel area as described in the real estate registry, unlessotherwise stated in the annotation. Therefore, the stated area may not be the same as theactual current state.
(iii) The “Use district” states the type of use district as listed in Article 8 Paragraph 1 Item 1 of theCity Planning Act (Act No.100 of 1968, including any amendments made thereto) (hereinafterreferred to as the “City Planning Act”).
(iv) The “Building coverage ratio” column and “Floor area ratio” column, respectively, states
numbers as prescribed under the Building Standards Act, City Planning Act, and other related
laws and regulations.

g.

Explanations of the “Building” section(i) The “Form of ownership” column states the type of right held by, or is expected to be held by,
the trustee with respect to the Asset to be Transferred.
(ii) The “Total floor area” column states the total floor area indicated in the real estate registry,
unless otherwise annotated. Therefore, the stated total floor area may not be the same as theactual current state.
(iii) The “Use” column states the main use within the uses indicated in the real estate registry, an13may not be the same as the actual current state.
(iv) The “Construction completion” column states the timing of new construction of the mainbuilding as indicated in the real estate registry.
(v) The “Structure and floors” column states the structure indicated in the real estate registry forthe main building, and may not be the same as the actual current state. Concerning sectional
ownership buildings, the structure and number of floors of the entire building which includes
the sectional ownership building is stated.
h.

The “Property management (PM) company” column states, as of the date of this announcement,
the property management company to which property management operations is entrusted or is
expected to be entrusted.

i.

The “Master lease company” column states, as of the date of this announcement, the master lease
company to which master lease operations is entrusted or is expected to be entrusted.

(C)

Explanations of the “Status of leasing” sectiona.

The “Total leasable area” column states the total floor area of the building pertaining to the Assetto be Transferred which is leasable (in the case where the common-use area is leased, the floor area
for such space is included), and does not include leasable areas for parking lots or other land used
for other purposes. The total leasable area does not state the area indicated in the real estateregistry, but states the area indicated in lease agreements or area calculated based on the building
drawing etc., and therefore does not necessarily coincide with the floor are indicated in the realestate registry.

b.

The “Total leased area” column states, of the total leasable area, the total of leased areas asindicated in lease agreements pertaining to the Asset to be Transferred as of January 31, 2023, anddoes not include leased space of parking lots or land used for other purposes.

c.

The “Occupancy rates” column states the ratio of total leased area to total leasable area for the
Asset to be Transferred, rounded to the second decimal place.

d.

The “Total number of tenants” column states the total number of tenants as indicated in leaseagreements related to the asset to be transferred as of January 31, 2023. In the case where a single
tenant is leasing multiple rooms for rent within the asset to be transferred, such tenant is counted
as one tenant for the relevant asset to be transferred, however, in the case where a single tenant isleasing rooms for rent for multiple assets to be transferred, the tenant shall be counted separately
for each asset to be transferred. In the case where a pass-through type master lease agreement isentered into with respect to an asset to be transferred, the total number of end tenants is stated.

e.

The “Monthly rent (including common area maintenance fee)” column states the total amount ofmonthly rents (including common-use fees, but does not include usage fees for trunk rooms,
signage, or parking lots etc., and only includes room rent. Also, free rent as of January 31, 2023 is
not taken into account) as indicated in lease agreements with each effective tenant as of January
31, 2023, rounded to the nearest 1000 yen.

f.

The “Security and guarantee deposits” column states the total amount of security deposits andguarantee deposits which are required under each lease agreement (limited to those where thetenants have already commenced occupying the property) related to the Asset to be Transferred asof January 31, 2023. In the case where a master lease agreement has been signed with respect tothe relevant asset to be transferred, the column states the total amount of security deposits and14

guarantee deposits in lease agreements signed with the end tenants.
(D)

Explanations of the “Special notation” column
The “Special notation” column states matters which are believed to be important in relation to the rights
and obligations of the Asset to be Transferred or its usage etc., as well as matters which are believed to
be important when considering the degree of impact on the appraisal value, profitability, or disposabilityof the Asset to be Transferred.

(E)

Explanations of the “Summary of Real Estate Appraisal Report” sectiona.

The “Summary of Real Estate Appraisal Report” section has been written based on the real estateappraisal report prepared by Japan Real Estate Institute (a General Incorporated Association) withrespect to the Asset to be Transferred.

b.

The “Appraisal value” column merely states an indication of opinion regarding the value of the realestate property subject to appraisal as of the time of appraisal given by the real estate appraiserthat has conducted the appraisal pursuant to the Real Estate Appraisal Act (Act No. 152 of 1963, as
amended) and real estate appraisal standards etc.

c.

Even if the same real estate property is reappraised, there is a possibility that the appraisal value
may differ depending on the real estate appraiser conducting the appraisal, the appraisal method,
and timing of appraisal. Furthermore, the appraisal of real estate gives no guarantee or promise of
the possibility that the subject real estate property may be sold or purchased at the relevant
appraisal value as of today or in the future.

d.

The Japan Real Estate Institute (a General Incorporated Association) that conducted the appraisal
and SAR / the Asset Manager do not have any special interest relationships.

15