December 27, 2021
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 Redemption of Mezzanine Loan Debt (Series 5/ Class B Beneficiary Interest)
As stated in the press release dated March 2, 2020 entitled “Notice Concerning Acquisition of Mezzanine Loan
Debt Star Asia Mezzanine Loan Debt Investment Series 5 (B Beneficiary Interest)”, Star Asia Investment Corporation(“SAR”) has held in investment the subordinated beneficial interest (the “Class B Beneficial Interest”) related tothe trust established over a loan receivable (non-recourse loan) advanced towards a Godo Kaisha (the “GK”)
collateralized by a trust beneficial interest whose main entrusted asset was Sanmaison Ohorikoenkita (such trust
beneficial interest hereinafter referred to as the “Collateral Asset”). However, as the GK recently sold the Collateral
Asset to a third party, the loan receivable which was the underlying trust asset of the relevant subordinatedbeneficial interest was fully repaid, and the accrued interest on the underlying loan receivable fully paid, andaccordingly, today, the total principal amount of the subordinated beneficial interest held by SAR was fully
redeemed, and SAR also received payment of the relevant accrued interest. Details are described below.
Given this prepayment, of the 6 mezzanine loan debt investments executed by SAR to date, three of them havebeen redeemed.
1.

Overview of the Class B Beneficiary Interest
The Class B Beneficiary Interest is the subordinated beneficial interest related to the trust established over aloan receivable towards the GK, where the collateral asset is a trust beneficial interest with Sanmaison
Ohorikoenkita as the main entrusted asset. SAR acquired the Class B Beneficial Interest on March 6, 2020 for JPY
1.5 million, and continued to hold it, based on the judgement that the certainty of principal repayment was high,and also as the investment would bring about diversification of investments and produce dividend income by
the effective utilization of own capital, and as it was anticipated that the investment would have the effect ofincreasing distributable income.

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<Overview of the Class B Beneficiary Interest Structure (as of March 2, 2020)>
Operator: GKGK

Trustee(Class AABL Lender)

Collateral Asset
Sanmaison(Class B Beneficial[Borrowing][Loan]

Interest)

Non-recourse loan

Nonrecourse loan

150 million yen

Ohorikoenkita

SAR

1,140 million yen(note2)(Appraisal value)(Class C Beneficial(note1)

Interest)[Equity]
Silent partnership,
investment, etc.

(Note 1) The appraisal value as of February 1, 2020 is indicated.
(Note 2) The Class B Beneficiary Interest was acquired on March 6, 2020.
For details regarding the Class B Beneficiary Interest described above, please refer to “Notice Concerning
Acquisition of Mezzanine Loan Debt Star Asia Mezzanine Loan Debt Investment Series 5 (B Beneficiary Interest)”announced on March 2, 2020.
2. Redemption of the Class B Beneficiary Interest
Given the sale of the Collateral Asset by the GK, the underlying loan receivable which was the trust asset of thesubordinated beneficial interest was fully repaid together with the total amount of accrued interest, and in
return, the total principal amount of the subordinated beneficial interest was also fully repaid, and the total
amount of accrued interest was received.
3. Future outlook
Since the impact of the redemption of the Class B Beneficiary Interest on the forecast for operating results forthe fiscal periods ending January 2022 (August 1, 2021 to January 31, 2022) and July 2022 (February 1, 2022 toJuly 31, 2022) announced in “Financial Report for Fiscal Period Ended July 31, 2021 (REIT)” dated September 14,
2021 is minimal, there are no changes to the forecast.
4. Other matters required for investors to appropriately understand and evaluate the above information
In conjunction with the risks pertaining to the redemption of the Class B Beneficiary Interest, etc., there are nochanges to “Part 1. Fund Information, I. Overview of the Fund, 3. Investment Risks” stated in the securities report(Japanese only) submitted on October 26, 2021.
SAR will continue to consider investments in mezzanine loan debt, which not only realizes diversification ofinvestment targets, but also boosts distributable profits through effective use of cash on hand allowing SAR toreceive dividend income, as part of the active management strategy that leads to maximization of unitholders’value.
* Star Asia Investment Corporation website: http://starasia-reit.com/en/
This is an English translation of the announcement in Japanese dated December 27, 2021.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

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