July 25, 2019
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: 03-5425-1340

Star Asia Group Supports Nippon Kanzai’s Views on Merger
Star Asia Also Strongly Believes Merger Between Star Asia REIT and Sakura Sogo REIT Is in the BestInterest of All Unitholders

Star Asia Investment Corporation (“SAR”) and Star Asia Investment Management Co., Ltd. (the “AssetManager”), the asset manager for SAR, received a notice today from Lion Partners GK (“LPGK”, Representative
Director: Toru Sugihara), an affiliate of Star Asia Group. LPGK is one of the largest unitholders of Sakura Sogo
REIT Corporation (“SSR”) holding 3.6% of the total investment units as of June 30, 2019. The notice from LPGK
is related to the statement announced by Nippon Kanzai Co. Ltd. (hereinafter “Nippon Kanzai”) yesterday (July24, 2019) entitled “Our View regarding the ‘Notice Concerning Proposal for Merger between Sakura Sogo REITInvestment Corporation and Star Asia Investment Corporation’ ” (hereinafter referred to as the “NK Statement”).
Details are as follows:

1.

Star Asia Group’s Response Regarding the Opinions of Nippon Kansai Announced in the NK Statement.

<Nippon Kanzai’s Comment (1)>We firmly believe that having SSR and SAR proceed with discussions in an amicable manner, with the objectiveof maximizing the enterprise value of SSR should be most beneficial to the interests of all SSR unitholders.
< Star Asia Group’s Response>Star Asia Group strongly believes that SSR as well as SSR’s Executive Director and Representative Director haverepeatedly taken actions which clearly contradict their claims that they wish to maximize unitholders’ value. In fact,
SSR has continually rejected legitimate and lawful requests from unitholders to convene a general meeting of allunitholders. However, as soon as the official permission to convene the unitholders’ meeting was granted to LPGK
by the Kanto Finance Bureau, SSR made the improper decision to hold its own unitholders’ meeting on the same
day as the unitholders’ meeting to be held called by unitholders. Clearly, SSR could have decided to hold its own
general meeting at the request and for the benefit of unitholders for weeks prior but refused to do so. Furthermore,
SSR has unlawfully rejected legitimate requests made by unitholders to inspect and receive a copy of theunitholders register. Subsequently, SSR was ordered by the Court to allow for the inspection and copying of the1unitholders register. Currently, SSR is yet again rejecting the legitimate and lawful request for the inspection andreceipt of a copy of the meeting minutes for the SSR board of directors’ meetings.
SSR has already received therecommendation from the Kanto Finance Bureau to comply with such request to disclose such documents.
As described above, SSR has repeatedly taken actions which do not comply with the legitimate and lawful
requests from unitholders and therefore are not acting in the best interest of unitholders. Given these detrimentaland bad faith acts by SSR, Star Asia Group has recognized that it would be extremely difficult to have constructive
discussions with SSR which might lead to a beneficial path forward. However, if Nippon Kansai, as one of thesponsors of SSR, could act as a mediator and create a forum to have constructive discussions, Star Asia Group isprepared to seriously consider participating in such discussions.
<Nippon Kanzai’s Comment (2)>Up to now, our Group has provided various building-related services to enhance the values of properties,
including the introduction of additional properties to SSR since before its establishment. In particular, we havecontributed to the long-term performance of SSR by proposing the optimum maintenance and management cost
structures which we have developed as a building management company, and also by providing persistent rent
negotiations in leasing activities aiming towards improvement of profitability, and proposing large-scale renovation
works to improve the value of buildings, etc.. Our Group’s basic policy with respect to the building management
contract with SSR is to continue to provide the same building services as we have provided to date, and to continue
to cooperate with SSR’s development.
<Star Asia Group’s Response>Star Asia Group has been a very active and successful real estate investor in Japan for many years. Based on thisextensive experience, Star Asia Group truly recognizes the role and track record of the on-site property
management company is an extremely important factor in maintaining and increasing the value of real estate
properties. Nippon Kanzai has been entrusted with the building management for the assets owned by SAR as well,and have performed very well. Given this track record as well as the overall strong reputation of Nippon Kanzai
Group, Star Asia Group believes that Nippon Kanzai is one of the most highly regarded and capable property
management companies in Japan.
Star Asia Group believes that Nippon Kanzai, which has been entrusted with the management of SSR-owned
properties for several years dating back to SSR’s predecessor, Galileo Japan Trust, understands the specificcharacteristics and nuances of the SSR owned properties better than any group. Therefore, Star Asia strong
asserts that Nippon Kanzai must continue to act as the onsite building management company after the merger
between SSR and SAR. Nippon Kansai’s ability to materially contribute to the maintenance and improvement ofthe property values in the middle and long-term, will undoubtedly lead to maximizing value for all unitholders ofthe merged SAR and SSR companies.

2.

Reference Information
Please also refer to the following press releases for further information.
<Disclosed on May 10th, 2019>・ Notice Concerning Proposal for Merger between Sakura Sogo REIT Investment Corporation and Star Asia
Investment Corporation
・Supplementary Explanatory Material Regarding Today’s Timely Disclosure (1)~Proposal Material from the Star Asia Group to all unitholders of Sakura Sogo REIT Investment Corporation~
・Supplementary Explanatory Material Regarding Today’s Timely Disclosure (2)~Explanatory Material to all unitholders of Star Asia Investment Corporation~2

<Disclosed on May 16th, 2019>
・Notice Concerning Application for Permission of Holding Sakura Sogo REIT Investment Corporation’s Unitholders’Meeting by Star Asia Group<Disclosed on June 28th, 2019>
・Star Asia Group Receives Approval to Hold Unitholders’ Meeting of Sakura Sogo REIT Investment Corporation<Disclosed on July 1st, 2019>
・Notice Concerning Holding Unitholders' Meeting of Sakura Sogo REIT Investment Corporation By Star Asia Group<Disclosed on July 4th, 2019>
・Lion Partners Files Petition with Tokyo District Court Seeking Injunction Given Illegal Acts Conducted by theExecutive Director of Sakura Sogo REIT (“SSR”). Also Takes Other Further Actions to Protect and Defend the BestInterests of SSR Unitholders<Disclosed on July 5th, 2019>・Supplementary Explanatory Material Regarding Timely Disclosure announced on July 4th, 2019
<Disclosed on July 17th, 2019>
・Lion Partners to Acquire Additional Investment Units of Sakura Sogo REIT
<Disclosed on July 19th, 2019>
・Lion Partners－Further Increases Amount of Additional Acquisition of Sakura Sogo REIT Units－<Disclosed on July 25th, 2019>
・Important Notice Regarding the Sakura Sogo REIT Unitholders’Meeting to be Convened by Lion Partners(Scheduled to begin from 10:00 am on Friday August 30, 2019 )3. Future Policy
If circumstances should arise which warrant further disclosures, such matters shall be disclosed as deemed
appropriate in a timely manner.
＊ SAR HP URL: http://starasia-reit.com＊ Star Asia Group HP URL: http://starasiamanagement.com/＊ SAR official YouTube channel URL: https://www.youtube.com/channel/UCYasJn4xrns2fhyZFKMAELw
This is an English translation of the announcement in Japanese dated July 25, 2019. However, no assurance or warranties aregiven for the completeness or accuracy of this English translation.

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