May 27, 2022
For Immediate Release
Real Estate Investment Trust Securities Issuer
Star Asia Investment Corporation
Representative: Atsushi Kato, Executive Officer(Code: 3468)
Asset Management Company
Star Asia Investment Management Co., Ltd.
Representative:
Atsushi Kato
President and CEO
Contact:
Akiko Kanno
Director and CFO
TEL: +81-3-5425-1340

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

Details of the Debt Financing
Method of Borrowing: Borrowing under individual term loan agreements from the lenders described below.
(Contract date: May 27, 2022)
BorrowingamountLenders

Long-termborrowings

A syndicate oflenders with
Sumitomo Mitsui
Banking
Corporation andMizuho Bank, Ltd.
as arrangers(Note 2)

(Note 1)

Borrowings with a repayment period of 1 year or less are classified as “short-term” and borrowings with

2,100
million yen

Interest rate
(Note 3)

Fixed

0.87375 %(Note 4)

Date ofborrowing

PrincipalRepayment
Date(Note 5)

Term
(Note 1)

May 31,2022

May 31,2027Repayment
methodSecurity

Lump sum
repayment on
principal
repaymentdate(Note 6)

UnsecuredandUnguaranteed

repayment periods exceeding 1 year are classified as “long-term”. The same applies below.
(Note 2)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Shinsei Bank, Limited., Aozora Bank,Ltd., and The Kiyo Bank, Ltd.

(Note 3)Financing fees and other charges payable to the lenders are not included.

(Note 4)

The first interest payment date is August 31, 2022, and thereafter, interest payment dates shall fall on the last dayof each 3 month, and on the principal repayment date. However, if such day is a non-business day, the interest
payment date shall be the immediately following business day, or if such day falls in the next month, the interest
payment date shall be the immediately preceding business day.

(Note 5)

If the principal repayment date is a non-business day, repayment shall be made on the next following business
day; however, if such date falls in the next month, repayment shall be made on the immediately precedingbusiness day.

(Note 6)

If certain conditions, such as advance notification in writing by SAR, are met during the period between the dateof borrowing and the principal repayment date, SAR may prepay the borrowed amounts either in whole or in part1

prior to maturity.
(Note 7)

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

2.

Reason for the Debt Financing
The proceeds from the Debt Refinancing will be appropriated to the repayment of the JPY 1,600 million
long-term borrowing and the JPY 500 million short-term borrowing each to mature on May 31, 2022. Withrespect to the JPY 1,600 million long-term borrowing, please refer to the press release disclosed by Sakura
Sogo REIT Investment Corporation dated May 24, 2019 entitled “Notice Concerning Borrowing” and May
30, 2019 entitled “Notice Concerning Determination of Interest Rate on Borrowings”, and with respect tothe JPY 500 million short-term borrowing, please refer to the press release by SAR dated March 16, 2022
entitled “Notice Concerning Debt Financing (Refinancing)”. (The Debt Financing and the relevant
repayments of existing borrowings are collectively referred to as the “Refinancings”).
(Note) Due to the absorption-type merger executed on August 1, 2020 , where SAR was the juridical person surviving
the absorption-type merger, and Sakura Sogo REIT Investment Corporation was the investment corporation
extinguished in the absorption-type merger, SAR has assumed the liabilities under the relevant borrowing of Sakura
Sogo REIT Investment Corporation.

3.

Total amount of funds to be procured by the Debt Financing, use of funds and schedule of expenditure(1) Amount of funds to be procured
JPY 2,100 million in total(2) Specific use of funds to be procured and schedule of expenditureSpecific use of funds
AmountTo be allocated to repayment of the existing
2,100 million yen
borrowings stated in Section 2 above.

4.

Schedule of Expenditure
May 31, 2022

Status of Borrowings etc. after the Refinancing(Unit: million yen)
Before theRefinancing
Short-term borrowings
Long-term borrowings
Total borrowings
Investment corporation bonds
Total interest-bearing liabilities

500
88,14088,6401,000
89,640After theRefinancing－88,14088,640
1,000
89,640Change-500
500－－－

5.

Future Outlook
The impact of the Refinancing on the forecast of operating results for the fiscal period ending July 31,2022 (February 1, 2022 to July 31, 2022) and the fiscal period ending January 31, 2023 (August 1, 2022 toJanuary 31, 2023) has already been reflected in the “(REIT) Financial Report for Fiscal Period Ended
January 31, 2022” which SAR announced on March 16, 2022.

6.

Other matters required for investors to appropriately understand and evaluate the above information
Concerning the risks pertaining to the repayment of the Debt Financing, there are no changes to “Part
1. Fund Information, I. Overview of the Fund, 3. Investment Risks” stated in the securities report(Japanese only) submitted on April 27, 2022.

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

This is an English translation of the announcement in Japanese dated May 27, 2022. However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

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