November 30, 2020
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

Star Asia Announces Preferential Negotiation Rights for the Acquisition of Additional Assets
Star Asia Investment Corporation (“SAR”) announces that today it has entered in to a preferential negotiationrights agreement with Star Asia Sogo Kaihatsu Co., Ltd. (“Star Asia Sogo Kaihatsu”), a member of Star Asia
Group, in relation to “City Heim Kamezawa” (residence) (the “Property”) for the purpose of securing future
resources for growth. Details are as follows.

1.

Reason for Signing of the Agreements on Preferential Negotiation Rights
SAR, since commencement of management, has expanded its asset size from JPY 61.4 billion at the time oflisting by more than 2.7 times to JPY 166.7 billion (see Note 1), based on external growth founded on thestrong sponsor support by Star Asia Group and due to the merger with Sakura Sogo REIT Investment
Corporation on August 1, 2020. Furthermore, SAR is aiming to accumulate properties subject topreferential negotiation rights as a resource for future growth, in order to achieve further external growth.
The Property which is subject to the preferential negotiation rights agreement is a family-type residence
located in the Tokyo area, which has maintained high occupancy due to the high level of traffic convenience
for access to major business districts in central Tokyo. SAR believes that if the Property is acquired, it would
improve the stability of portfolio income.
Furthermore, SAR has already secured preferential negotiation rights for 7 properties (3 offices, 1commercial retail facility, 1 residence, and 2 student residences) apart from the Property. The total
preferential negotiation price etc. or appraisal values etc. of the 8 properties including the Property isapproximately JPY 23.4 billion (see Note 2), and SAR intends to aim for further external growth by utilizing
the preferential negotiation rights for these 8 properties and by continuing to co-work with Star Asia Group
going forward as well.
(Note 1) This states the total amount after executing the assignment of the quasi-co-ownership interest in Alphabet
Seven, and also the (expected) acquisition price after execution of the 7th asset replacement announced today.
(Note 2) For definitions of the preferential negotiation prices etc. and appraisal values etc. and details of the total value,please refer to section “4. Preferential Negotiation Rights held by SAR” below.

2.

Summary of the agreements on preferential negotiation rights with respect to the Property(1) City Heim Kamezawa
Counterparty
Star Asia Sogo Kaihatsu Co., Ltd. (Note1)1Major rights given

The contract counterparty is expected to acquire the Property by the end of March
2022, and during the subject period stated below, in the case where the contract
counterparty is to start activities to sell or purchase the Property (if it is before thecontract counterparty executes the purchase, this means the assignment of thecontract counterparty’s status as purchaser under the sale and purchase agreement),
SAR will be able to receive information in priority to third parties, and also, If SAR
desires to acquire the Property, the contract counterparty must consult with SAR ingood faith towards agreement on the basic terms and conditions etc. of the sale andpurchase.
The Property
City Heim Kamezawa✓ The date of signing of the preferential negotiation rights agreement for the Property is today(November 30, 2020), and the preferential negotiation period (subject period) shall be from today up
to the end of March 2022.
✓ When deciding to acquire the Four Properties, it is necessary for Star Asia Investment ManagementCo., Ltd. to take necessary procedures including conducting due diligence which includes obtaining
real-estate appraisals, and SAR has no obligation to acquire the Four Properties.
✓ Upon entering into the agreements on preferential negotiation rights, SAR shall not pay any
consideration to the counterparties.
3.

General Description of the Four Property(1) City Heim Kamezawa
Name of the Property
City Heim Kamezawa
Address
3-12-5 Kamezawa, Sumida-ku, Tokyo (residence indication)
Access from nearby
Approximately a 9-minute walk from “Ryogoku” Station on the Toei Oedo Linetrain stations
Approximately an 11-minute walk from “Kinshi-cho” Station on the JR Line and Tokyo
Metro Hanzomon LineAsset typeResidence
Site area
669.98 m2 (Note)
Total floor area
2,531.42 m2 (Note)
Steel reinforced concrete (SRC) construction, flat roof, 9 stories (Note)
Structure/ Number of Stories
Planned completion
October 31, 1997
Features
The Property is a family-type residence consisting of 32 housing units centered on
3LDK layouts, and is located in a highly traffic convenient area accessible to“Ryogoku” station and “Kinshi-cho” station. Given the access to 2 train stations, it has
good access to the central metropolitan areas, and the Property is anticipated tohave stable operations.
In the Kamezawa area surrounding the property, there is the “Sumida HokusaiMuseum”, “Edo-Tokyo Museum”, “Kokugikan Sumo Arena”, and “Former Yasuda
Garden” etc., and it is an area which is focusing on disseminating cultural informationand formation of landscapes.
The Property has a high level of living convenience, and is highly appealing to families
seeking proximity to central Tokyo.
(Note) Figures shown are current plans and subject to change until completion.

4.

Preferential Negotiation Rights held by SAR
As of today, SAR has entered into agreements on preferential negotiation rights for acquiring properties,
with respect to the following 8 properties in total which include the Four Properties.

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Completion/No.

Name of the Property

Asset Type

Location

Value Etc.

Plannedcompletion

1

OHA Building

OfficeTachikawa-shi,Tokyo

Total amount of thepreferentialMay 1990

negotiation prices
2

Nishi-Ikebukuro 1 Chome

RetailBuilding

Toshima-ku,
Tokyo

etc.
5,090

November 1992

Million yen(Note 1)

Purpose-built
3

HAKUSAN HOUSE

student
accommodation

4

KAMIKITA HOUSE(Former) Shimotakaido Project

Purpose-builtstudent
accommodation

Bunkyo-ku,Suginami-ku,December 2019

TokyoURBAN CENTER HAKATA

Total amount of theFormer (Tentative Name)
5February 2018

Tokyo

Hakata-ku Hataka-eki

OfficeMinamiFukuoka-shi,

appraisal values etc.

Fukuoka

18,403Million yen

September 2020

(Note 2)3-Chome Office Project
Osaka-shi,

6

URBAN CENTER MIDOSUJI

Office7

Miyamae-ku, Kodai

Residence

8

City Heim Kamezawa

Residence(Note 1)

The total amount of the preferential negotiation prices etc. means the total amount of (1) if a preferential

OsakaApril 2019

Kawasaki-shi,June 2021

Kanagawa(planned)

Sumida-ku,TokyoOctober 1997

negotiation price or desired purchase price is stated in the agreement on preferential negotiation rights, suchprice, and (2) if not stated, the scheduled purchase price at which Star Asia Group is expecting to purchase theproperty.
(Note 2)The ‘Total amount of the appraisal values etc.” means the total of (i) the appraisal values in cases whereappraisals have been obtained, and (ii) the expected acquisition price by Star Asia Group in cases whereappraisals have not been obtained.

5.

Future Prospects
Signing of the above-mentioned agreements on preferential negotiation rights are not expected to have any
impact on the performance of SAR.

* SAR HP URL: http://starasia-reit.com/en/
This is an English translation of the announcement in Japanese dated November 30, 2020. However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

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<Annex documents>

Photographs of properties and conceptual drawings
OHA Building

Nishi-Ikebukuro 1 Chome Building

HAKUSAN HOUSE

KAMIKITA HOUSE(Former) Shimotakaido Project

URBAN CENTER HAKATAURBAN CENTER MIDOSUJI(Former) (Tentative Name) Hakata-ku Hataka-eki
Minami 3-Chome Office Project

Miyamae-ku, Kodai

City Heim Kamezawa(Note)(Note) Kodai in Miyamae-ku which is subject to the preferential negotiation rights is currently under construction, so a map has been
inserted.

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