August 28, 2024
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 (Change to Borrowing Amount)Star Asia Investment Corporation (“SAR”) announces today that with respect to the debt financing announced
in the press release dated August 19, 2024 entitled “Notice Concerning Debt Financing (Green Loans)”(hereinafter referred to as the “Debt Financing”), it has decided to change the borrowing amount as described
below (hereinafter referred to as the “Change”).
1.

Change to the Debt Financing(1) Increase in the borrowing amount
Regarding the Debt Financing announced in the “Notice Concerning Debt Financing (Green Loans)”
dated August 19, 2024, the total borrowing amount will be increased from JPY 17,460 million yen to JPY
19,040 million yen.
(2)

Reason for the Change
It has been decided to increase the borrowing amount, because the amount procured by the issue of
new investment units as announced in the “Notice Concerning Issuance of New Investment Units andSecondary Offering of Investment Units” dated August 19, 2024 has been fixed, and such amount was
lower than the initially expected amount.

(3)

Details of the Debt Financing after the Change
There are no changes other than the increase in the borrowing amount. The parts that were changed
are underlined.
Method of Borrowing: Borrowings under individual term loan agreements signed today from the lenders
described below
BorrowingTerm(Note 1)

Lenders

PrincipalamountInterest rate

Date of

Repayment(million(Note 2)

borrowing

Dateyen)(Note 5)

Repayment
methodSecurity(Note 6)Base
Lump suminterest
Short‐termborrowings

rate

Sumitomo
Mitsui Banking
Corporation

1,200

Floating

January 31,(JPY 1M

August 30,

TIBOR)

2024+0.20%(Note 3)12025
(Note 7)

repaymentonprincipal
repayment
date

UnsecuredandUnguaranteedBase

Lump suminterest
Short‐termborrowings

Sumitomo
Mitsui Banking

rate800

Floating

Corporation(JPY 1M
TIBOR)

August 29,
August 30,
2024

2025
(Note 8)+0.20%

repaymentonprincipal
repayment

Unsecuredand
Unguaranteed

date(Note 3)
A syndicate oflenders with
Sumitomo
Mitsui Banking
Long‐term

Corporation andborrowings

Mizuho Bank,
Ltd. as arrangers(Note 9)(Green Loan)

Base(BeforeLump suminterestchange)

repayment

rate

7,440

(JPY 3M

August 30,

August 30,(AfterTIBOR)

2024

2029change)+0.60%

8,840(Note 4)

Floatingonprincipal
repayment

UnsecuredandUnguaranteed

date(Note 11)
A syndicate oflenders with

Base

Sumitomo

interest

Mitsui Banking(Beforeratechange)(JPY 3M

Long‐term

Corporation andborrowings

Mizuho Bank,
Ltd. as arrangers(Note 10)(Green Loan)

8,200

FloatingTIBOR)

Lump sum
repayment
August 30,February

2024

28, 2031+0.75%

onprincipal
repayment

UnsecuredandUnguaranteeddate(Note 4)(Note 11)
(Note 1)

“Short‐term borrowings” refer to borrowings due within one year. “Long‐term borrowings” refer to borrowings where theperiod up to the repayment date is one year or more. The same applies below.

(Note 2)Financing fees and other charges payable to the lenders are not included.

(Note 3)

The first interest payment date is September 30, 2024, and thereafter, interest payment dates shall fall on the last day of every
1 month and on the principal repayment date. 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 theimmediately preceding business day. For borrowings with floating interest rates, the base interest rate applicable to thecalculation period for payment of interest on any given interest payment date is the one‐month TIBOR for Japanese Yen asannounced by JBA TIBOR Administration at 11 a.m. (Tokyo time, the same applies hereinafter) or at the point of time after 11a.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 (or two business days before the drawdown date for the first interest payment date). However, if there is no baserate that corresponds to an interest calculation period, the base rate will be calculated by the formula set forth in the individual
term loan agreements. For Japanese Yen TIBOR announced by the JBA TIBOR Administration, which is used as the base interestrate, please confirm on the JBA TIBOR Administration website (https://www.jbatibor.or.jp/english/). SAR may consider fixing
interest rate payments by interest rate swap agreements for the Debt Financing.

(Note 4)

The first interest payment date is September 30, 2024, and thereafter, interest payment dates shall fall on the last day of every
3 months and on the principal repayment date. 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 theimmediately preceding business day. For borrowings with floating interest rates, the base interest rate applicable to thecalculation period for payment of interest on any given interest payment date is the three‐month TIBOR for Japanese Yen as
announced by JBA TIBOR Administration at 11 a.m. (Tokyo time, the same applies hereinafter) or at the point of time after 11a.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 (or two business days before the drawdown date for the first interest payment date). However, if there is no baserate that corresponds to an interest calculation period, the base rate will be calculated by the formula set forth in the individual
term loan agreements. For Japanese Yen TIBOR announced by the JBA TIBOR Administration, which is used as the base interest
rate, please confirm on the JBA TIBOR Administration website (https://www.jbatibor.or.jp/english/). SAR may consider fixing
interest rate payments by interest rate swap agreements for the Debt Financing.

(Note 5)

If the principal repayment date is a non‐business day, the repayment date shall be the immediately following business day;2

however, if such date falls in the next month, repayment date shall be the immediately preceding business day.
(Note 6)

If certain conditions, such as advance notification in writing by SAR, are met during the period between the date of borrowing(Note 7)The loan is scheduled to be repaid prior to maturity during the fiscal period ending January 31, 2025, due to the proceeds fromand the principal repayment date, SAR may prepay the borrowed amounts either in whole or in part prior to maturity.

the sale of the properties.
(Note 8)The loan is scheduled to be repaid prior to maturity during the fiscal period ending July 31, 2025, due to the refund ofconsumption tax, etc.

(Note 9)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., SBI Shinsei Bank, Limited.,
Sumitomo Mitsui Trust Bank, Limited., Resona Bank, Limited., The Kiyo Bank, San ju San Bank, Ltd., The Juhachi‐Shinwa Bank,Ltd., The Yamagata Bank, Ltd., The Hokuriku Bank, Ltd., Kansai Mirai Bank, Limited, The Gunma Bank, Ltd. and Suruga Bank Ltd.

(Note 10) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., SBI Shinsei Bank, Limited.,
Sumitomo Mitsui Trust Bank, Limited., Resona Bank, Limited., The Bank of Fukuoka, Ltd., San ju San Bank, Ltd., The Ogaki
Kyoritsu Bank, Ltd., and Kansai Mirai Bank, Limited, The Gunma Bank and Suruga Bank Ltd.
(Note 11) The borrowings are to be made as financing of funds required to acquire assets which satisfy the green eligibility criteria underthe Framework. For details of the Framework, please refer to the "Green Finance Framework" page on SAR's website.
（https://starasia‐reit.com/en/esg/greenfinance.html）(Note 12)

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

2.

Reason for the Debt Financing
To be allocated to the payment of a part of the acquisition funds and related expenses for acquisition of
the real estate beneficiary interests in trust for 4 properties to be acquired on August 30, 2024 (totalanticipated acquisition price: 34,700 million yen) described as Assets to be Acquired in the “NoticeConcerning Acquisition of Real Estate Beneficiary Interests in Trust and Lease Contract with New Tenants”
announced on August 2024 and to the reduced cash on hand due to the acquisition of the Asset to beAcquired (Real Estate Properties etc.), as announced in the “Notice Concerning Acquisition of Real Estate
Beneficiary Interest in Trust and Mezzanine Loan Debt, and Transfer of Real Estate Beneficiary Interests inTrust (11th Asset Replacement)” dated August 2, 2024.
SAR may consider fixing interest rate payments by an arrangement such as interest rate swaps for the Debt
Financing to improve stability of its financial foundation.

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
19,040 million yen in total(2) Specific use of funds to be procured and schedule of expenditures
There are no changes other than the increase in the borrowing amount. The parts that were changed
are underlined.
Specific use of funds
AmountSchedule of Expenditure
To be allocated to the payment of a part ofthe acquisition funds and related expenses forthe real estate beneficiary interests in trustfor 4 properties to be acquired on August 30,(Before change)
2024 (expected acquisition price: 34,700
17,640 million yen
million yen) described as Assets to beAugust 30, 2024
(Afterchange)
Acquired and to the reduced cash on hand
19,040 million yen
due to the acquisition of the Asset to beAcquired (Real Estate Properties etc.) which isacquired in August 16, 2024, as stated inSection 2 above.
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4.

Status of Borrowings etc. after the Debt Financing(Unit: million yen)

Short‐term borrowings
Long‐term borrowings
Total borrowings
Investment corporation bonds
Total of borrowings andinvestment corporation bonds

Before theDebt Financing
1,000
119,840
120,840
1,000

After theDebt Financing
3,000
136,880
139,880
1,000

121,840

140,880

Increase/Decrease
2,000
17,04019,040－19,040

5.

Outlook
The impact of the change to the Debt Financing on SAR’s operating results is immaterial, and there are
no changes to the forecasts of operating results for the fiscal period ending January 31, 2025 (August 1,2024 to January 31, 2025) and the fiscal period ending July 31, 2025 (February 1, 2025 to July 31, 2025)
which were announced by SAR in the “Notice Concerning Revision to Forecasts for Operating Results andDistribution for the 17th Fiscal Period Ended July 31, 2024 and Revision to Forecasts for Operating Resultsfor the 18th Fiscal Period Ending January 31, 2025 and Forecasts for Operating Results and Distribution for
the 19th Fiscal Period Ending July 31, 2025” on August 19, 2024. The brief report on closing of accounts forthe fiscal year ended July 31, 2024 (February 1, 2024 to July 31, 2024) is scheduled to be announced on
September 13, 2024.

6.

Other matters necessary for investors to appropriately understand and evaluate the above information.
In conjunction with the risks pertaining to the change to the Debt Financing, there are no changes to“Part II. Reference Information / II. Information Supplementary to Reference Documents / 3. InvestmentRisks” stated in the Securities Registration Statement (Japanese only) submitted on August 19, 2024.

*SAR HP URL: https://starasia‐reit.com/en/

This is an English translation of the announcement in Japanese dated August 28, 2024. However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

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