August 21, 2018
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:
Toru Sugihara
Director and CFO
TEL: +81-3-5425-1340

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

Details of Debt Financing

Term

Short-term(Note 1)

LenderSumitomo MitsuiBanking
Corporation andMizuho Bank, Ltd.

A

syndicatelenders

Borrowingamount(million yen)
(Note 5)Interestrate(Note 6)(Note 7)3,500
(Note 3)Baseinterest
rate+0.20%790(Note 4)

4,000

Sumitomo MitsuiLong -term

Banking(Note 1)

Corporationas arrangers(Note 2)September
6, 2018

Borrowingbased on theindividual termloan agreement
planned to be
dated
September 4,2018 based onthebasicagreement
dated April 15,
2016 between
SumitomoMitsui Banking
Corporation as
an agent.

interest
rate+0.45%

andMizuho Bank, Ltd.

Borrowing
methodBaseofwith

Date ofborrowing

Base
4,840

interest
rate+0.60%

Maturitydate(Note 8)

Repayment
methodSecurity

Lump sum
repayment
on maturity
date(Note 9)

UnsecuredandUnguaranteed

December20, 2018
August 20,
2019

March 22,2022

September
20, 2023

Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to the decision of debt financing, andnot for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein
have not been, and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”)
and may not be offered or sold in the United States absent registration or an exemption from registration under t he
Securities Act. No offering or sale of securities in the United States will be made in connection with the above -mentionedtransactions. This press release is not for publication, distribution or release, directly or indirectly in or into the Unite dStates of America.

1

(Note 1)

Short-term refers to borrowings due within one year, and long-term refers to borrowings due after one year.

(Note 2)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited, Aozora Bank, Ltd., Shinsei Bank, Limited, Resona Bank, Limited, The Bank of Fukuoka, Ltd.,
Mizuho Trust & Banking Co., Ltd., and The Nishi-Nippon City Bank, Ltd.

(Note 3)

We expect to make partial repayment ahead of the maturity date using proceeds from the transfer of 49% ofquasi-co-beneficiary interest of Hakata-eki Higashi 113 Building (1,396.5 million yen) (which is scheduled to betransferred on December 3, 2018) and Urban Park Shin-Yokohama (2,775 million yen) (which is scheduled to betransferred on October 11, 2018), both of which are scheduled to be transferred in the 6th fiscal period, ending
January 31, 2019.

(Note 4)

For 330 million yen out of the anticipated short-term debt balance of 790 million yen from Sumitomo Mitsui
Banking Corporation and Mizuho Bank, Ltd., we expect to repay the partial amount in the 6th fiscal period, ending
January 31, 2019, through funds raised by issuance of new investment units by way of the third-party allotment, if
all or a part of investment units to be newly issued in the third-party allotment resolved at SAR’s Board ofDirectors meeting on August 21, 2018 (Please refer to “Notice Concerning Issuance of New Investment Units andSecondary Offering of Investment Units” announced today; the ”Third-Party Allotment.”) related to the offering
have been issued, and to repay the rest of the amount through consumption tax refund expected to be received inthe 7th fiscal period ending June 31, 2019, ahead of the maturity date. Please note that, as the number of theinvestment units to be issued in the actual Third-Party Allotment and the amount of the consumption tax refund
are both subject to change, it is possible that early repayment may not take place at all depending on such
number or amount.

(Note 5)

Borrowing amount may be changed before the actual date of borrowing, in consideration of the amount ofproceeds from the issuance of new investment units through public offering resolved at SAR’s Board of Directorsmeeting on August 21, 2018 (Please refer to “Notice Concerning Issuance of New Investment Units and Secondary
Offering of Investment Units” announced today.) and other relevant factors.

(Note 6)

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

(Note 7)

The first interest payment date is September 20, 2018 and following interest payment dates are 20th of every
month thereafter and the principal repayment date (maturity date). However, if such date is not a business day,the immediately following business day, or if such date falls on the next month, the immediately precedingbusiness day is respectively set as the interest payment date. For borrowings with floating interest rates, the baseinterest rate applicable to the calculation period for interest to be paid on each interest payment date is the one
month interest rate of the Japanese Yen TIBOR 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
two business days immediately before each interest payment date (two business days before the drawdown datefor the first interest payment date). However, in case the concerned interest rate is not announced for somereasons, the interest rate (annual rate) determined reasonably by the agent (Sumitomo Mitsui BankingCorporation) shall be used, or in case the period corresponding to the first interest rate calculation period or theinterest rate calculation period does not exist, base rate corresponding to the concerned period and calculated
based on methods determined in the contracts shall be used. For Japanese Yen TIBOR announced by the JBA
TIBOR Administration which is 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 anNote： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to the decision of debt financing, andnot for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein
have not been, and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”)
and may not be offered or sold in the United States absent registration or an exemption from registration under t he
Securities Act. No offering or sale of securities in the United States will be made in connection with the above -mentionedtransactions. This press release is not for publication, distribution or release, directly or indirectly in or into the Unite dStates of America.

2arrangement such as interest rate swaps for long-term borrowings out of the Debt Financing.
(Note 8)

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 9)If certain conditions, such as advance notification in writing by SAR, are met during the period between the dateof borrowing and the maturity date, SAR is eligible to repay the borrowed amounts either in whole or in part prior
to the maturity date.

(Note 10) Financial covenants, such as stipulating that certain financial figures should be maintained based on assets andliabilities, are expected to be set for the Debt Financing.

2.

Reasons for Debt Financing
To be allocated for a part of the acquisition price and acquisition-related expenses of real estate
beneficiary interests in trust (Number of property: 6, total anticipated acquisition price: 19,670 million yen)described in “Notice Concerning Acquisition and Lease Contract with New Tenants, and Transfer of Real
Estate Beneficiary Interests in Trust” announced today, “Notice Concerning Acquisition and Transfer (AssetReplacement) of Real Estate Beneficiary Interests in Trust” announced on July 23, 2018 and “NoticeConcerning Determination of the Planned Acquisition Date and Change of the Acquisition Financing”
announced today.

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
13,130 million yen in total(2) Specific use of funds to be procured and schedule of expenditure

4.

Specific use of funds

AmountSchedule ofExpenditure

To be allocated for a part of the acquisition price andacquisition-related expenses of real estate beneficiaryinterests in trust (Number of property: 6, total anticipatedacquisition price: 19,670 million yen) stated in Section 2above.

13,130
million yen

September 6,2018

Status of Loans etc. after Debt Financing

Short-term borrowings
Long-term borrowings
Total borrowings
Investment corporation bonds
Total borrowings and Investment corporation bonds

Before theBorrowing―
43,23043,230―43,230(Unit: million yen)
After theChange
Borrowing
4,290
4,290
52,0708,840
56,36013,130――56,360
13,130Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to the decision of debt financing, andnot for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein
have not been, and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”)
and may not be offered or sold in the United States absent registration or an exemption from registration under t heSecurities Act. No offering or sale of securities in the United States will be made in connection with the above -mentionedtransactions. This press release is not for publication, distribution or release, directly or indirectly in or into the Unite dStates of America.

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Other interest-bearing liabilities
Total interest-bearing liabilities
5.

―43,230―56,360―13,130

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, etc., there are no changes
to “Part II. Reference Information / II. Information Supplementary to Reference Documents / 3. Investment
Risks” stated in the Securities Registration Statement submitted today (August 21, 2018).

<Reference>
Other press releases published as of today- Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units- Notice Concerning Acquisition and Lease Contract with New Tenants, and Transfer of Real Estate
Beneficiary Interests in Trust- Notice Concerning Revision to Forecasts for Operating Results for the 6th Fiscal Period Ending January 31,
2019 and Forecasts for Operating Results and Distribution for the 7th Fiscal Period Ending July 31, 2019- Notice Concerning Partial Amendment to the Management Guidelines of the Asset Manager- Notice Concerning Execution of Agreements on Preferential Negotiation Rights to secure Acquisition
Pipeline for Future Growth- Notice Concerning Determination of the Planned Acquisition Date and Change of the Funds for Acquisition- Supplementary Material on Press Releases (Acquisition of Properties through Public Offering) Announced
as of Today* This material is distributed to the press club of the Tokyo Stock Exchange (Kabuto Club), the press club of theMinistry of Land, Infrastructure, Transport and Tourism, and the press club for construction trade
publications of the Ministry of Land, Infrastructure, Transport and Tourism.
* Star Asia Investment Corporation website address: http://starasia-reit.com/en/

Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to the decision of debt financing, andnot for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein
have not been, and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”)
and may not be offered or sold in the United States absent registration or an exemption from registration under t he
Securities Act. No offering or sale of securities in the United States will be made in connection with the above -mentionedtransactions. This press release is not for publication, distribution or release, directly or indirectly in or into the Unite dStates of America.

4