August 25, 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

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 FinancingTerm(Note 1)

short-term

LenderA syndicate oflenders withSumitomo MitsuiBanking
Corporation andMizuho Bank, Ltd.
as arrangers (Note2)

Borrowingamount2,150
million yen

Interestrate(Note 5)(Note6)

Baseinterestrate(JapaneseYen 1M
TIBOR）

Date ofborrowing

Borrowing method

August 31,
2020

Borrowing based on
the individual termloan agreement
expected to bedated August 27,
2020 based on thebasic agreement
dated July 29, 2020
between Sumitomo
Mitsui Banking
Corporation asagent.

+0.20%

1Principal
Repayment Date(Note 7)

Repayment
methodSecurity

August31, 2021

Lump sum
repaymentonprincipal
repaymentdate(Note8)

UnsecuredandUnguaranteedlong-termlong-term(Note 1)

A syndicate oflenders with
Sumitomo Mitsui
Banking
Corporation andMizuho Bank, Ltd.
as arrangers (Note3)

A syndicate oflenders with
Sumitomo Mitsui
Banking
Corporation andMizuho Bank, Ltd.
as arrangers (Note4)

500
million yen

Baseinterestrate(JapaneseYen 3M
TIBOR）

August 31,2020

Borrowing based on
the individual termloan agreement
planned to be dated
August 27, 2020
based on the basicagreement dated
July 29, 2020
between SumitomoMitsui Banking
Corporation as anagent.

August 31,2020

Borrowing based on
the individual termloan agreement
planned to be dated
August 27, 2020
based on the basicagreement dated
July 29, 2020
between Sumitomo
Mitsui Banking
Corporation as anagent.

+0.45%

8,250
million yen

Baseinterestrate(JapaneseYen 3M
TIBOR）+0.60%

February29, 2024

Lump sum
repayment
on principal
repayment(Note8)

UnsecuredandUnguaranteedAugust29, 2025

Lump sum
repayment
on principal
repaymentdate(Note8)

UnsecuredandUnguarantee
dShort-term borrowings refers to borrowings where the period up to the repayment date is less than one year, andlong-term borrowings refers to borrowings where the period up to the repayment date is one year or more. The
same applies hereinafter for short-term borrowings and long-term borrowings.

(Note 2)The syndicate of lenders consists of Shinsei Bank, Limited, The Bank of Fukuoka, Ltd., and Resona Bank, Limited.

(Note 3)The syndicate of lenders consists of The Bank of Fukuoka, Ltd.

(Note 4)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Aozora Bank, Ltd.,Sumitomo Mitsui Trust Bank, Limited, The Nishi-Nippon City Bank, Ltd., and Resona Bank, Limited.

(Note 5)

Financing fees and other charges payable to the lenders are not included.

(Note 6)

The first interest payment date is September 30, 2020, and thereafter, interest payment dates are the last day ofeach month and the principal repayment date for loans with base interest rates of JPY 1 month TIBOR, and thelast day of every 3 months and the principal repayment date for loans with base interest rates of JPY 3 monthTIBOR. However, if such date is a non- business day, the interest payment date shall be the immediately following
business day, or if such date falls in the next month, the interest payment date shall be the immediately precedingbusiness day. For borrowings with floating interest rates, the base interest rate applicable to the calculation period
for payment of interest on any given interest payment date is, for borrowings with a base interest rate of JPY 1
month TIBOR, the one month interest rate, and for borrowings with a base interest rate of JPY 3 month TIBOR,
the three month interest rate, respectively, of the Japanese Yen TIBOR as announced by JBA TIBOR Administration
at 11 a.m. (Tokyo time, the same applies hereinafter) or at the point of time after 11 a.m. and as close to 11 a.m.
as possible, on the date which is two business days prior to the immediately preceding interest payment date (ortwo business days before the drawdown date for the first interest payment date). However, if Japanese Yen TIBOR
corresponding to an interest rate calculation period does not exist in the above mentioned display of Japanese
Yen TIBOR, either the interest rate displayed for the period which is shorter than and nearest to the relevant
period and the interest rate displayed for the period which is longer than and nearest to the relevant period,
whichever is higher, shall be applied.

For Japanese Yen TIBOR announced by the JBA TIBOR Administration whichis used as the base interest rate, please check with the JBA TIBOR Administration website(http://www.jbatibor.or.jp/english/rate/). SAR will consider fixing interest rate payments by arrangements such2

as interest rate swaps for long-term borrowings within the Debt Financing.
(Note 7)

If a principal repayment date is not a business day, repayment shall be made on the next business day; however,
if such date falls on the next month, repayment shall be made on the immediately preceding business day.

(Note 8)

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 partprior to maturity.

(Note 9)Certain financial covenants, such as stipulating that certain financial figures should be maintained based on assets
and liabilities, are expected to be established for the Debt Financing.

2.

Reasons for Debt Financing
The proceeds from the Debt Financing will be appropriated to repayments for the long-term borrowings ofJPY 6,000 million and the short-term borrowings of JPY 4,900 million which are to mature on August 31, 2020.
For details of the long-term borrowings, please refer to the press release announced by Sakura Sogo REIT
Investment Corporation (see Note) on September 9, 2006 entitled “Notice Concerning Execution of Debt
Financing (Japanese only. No English translation available)”, and for details of the short-term borrowings,
please refer to the press release announced by Sakura Sogo REIT Investment Corporation (see Note) onFebruary 18, 2020 entitled “Notice Concerning Debt Financing (Refinancing)” (Japanese only. No English
translation available)”. (The Debt Financing together with repayments of the existing borrowings shallhereinafter be referred to as the “Refinancing”.)(SAR seeks to improve the soundness of its financial base by the Debt Financing and considering fixing ofinterest-rate payments by entering into the interest rate swap agreements for its long-term borrowings within
the Debt Financing.
(note)SAR has succeeded the debts of Sakura Sogo REIT Investment Corporation (“SSR”) following the executionof an absorption-type merger effective August 1, 2020, whereby SAR was the surviving company
and SSR was the dissolving company.

3.

Total amount of funds to be procured by the Debt Financing, use of funds and schedule of expenditures(1) Amount of funds to be procured
10,900 million yen in total(2) Specific use of funds to be procured and schedule of expenditures4.

Specific use of funds

Amountmillion yen

Schedule ofExpenditures

To be allocated to repayment of the Existing Loans stated inSection 2 above.

10,900August 31, 2020

Status of Borrowings etc. after the Refinancing

Short-term borrowings
Long-term borrowings
Total borrowings
Investment corporation bonds
Total borrowings and Investment corporation bonds
Other interest-bearing liabilities
Total interest-bearing liabilities

3

Before theRefinancing
4,900
78,62083,520―83,520―83,520(Unit: million yen)
After theChange
Refinancing
2,150-2,750
81,3702,750
83,520―――83,520―――83,520―5.

Future outlook
The impact of the Refinancing on the operating results is insignificant, and the impact on the forecast ofoperating results for the fiscal period ending January 31, 2021 (August 1, 2020 to January 31, 2021) which
was announced by SAR in the “Notice Concerning the Forecast of Operating Results and Distributions
Subsequent to the Merger of Star Asia Investment Corporation and Sakura Sogo REIT Investment Corporation
for the Fiscal Periods Ending January 31, 2021 and July 31, 2021” dated March 2, 2020 and in the “(REIT)
Financial Report for Fiscal Period Ended January 31, 2020” dated March 13, 2020 is minimal, and there areno changes to the forecast.

6.

Other matters required for investors to appropriately understand and evaluate the above information.
In conjunction with 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 (Japaneseonly) submitted on April 28, 2020.

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

This is an English translation of the announcement in Japanese dated August 25, 2020.However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

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