April 18, 2019
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 Establishment of Interest Rate SwapStar Asia Investment Corporation (“SAR”) announces today the establishment of an interest rate swap (the“Establishment of Interest Rate Swap”) concerning long-term borrowings described in “Notice Concerning DebtFinancing (refinancing)” dated April 12, 2019, as described below. Moreover, please refer to the press releasementioned above for the details of borrowing for which the Establishment of Interest Rate Swap was performed.
1. Reason for establishment
SAR intends to fix interest rate payments and hedge the risk of interest rate fluctuation pertaining to theborrowings under an individual term loan agreement concluded today as described in “2. Details of theestablished swap” below.
2. Details of the established swap
(1) Borrowing for which an interest rate swap agreement was concluded
Term(Note 1)

Borrowing
Lenderamount(million yen)Interest

Date of

Borrowing

Maturity

Repaymentrateborrowing

methoddatemethod

Borrowing based

A syndicate

on the individualof lenders

term loan

withagreement dated

SumitomoLong-term

Base

MitsuiBanking
Corporationand Mizuho

8,000

Lump sum
repayment

April 22,

based on therate2019

basic agreement+0.60%

April 22, 2024with Sumitomo

on maturity
date

Unsecured
andunguaranteed

Mitsui Banking
Corporation asarrangers

an agent dated(Note 2)

(Note 2)

April 18, 2019,

interest

Bank, Ltd. as(Note 1)

Security

April 15, 2016.

“Long-term” refers to borrowings due after one year. The same applies hereinafter.
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. and Mizuho Trust & Banking
Co., Ltd.

(2) Details of interest rate swap agreement1Counterparty
Notional principal
Interest rate (Note)

Sumitomo Mitsui Trust Bank, Limited
8,000 million yen
Fixed interest rate payable: 0.15315%
Floating interest rate receivable: JBA 1-month yen TIBOR
Commencement date
April 22, 2019
Termination date
April 22, 2024
Interest payment dates
The first interest payment will be May 5, 2019, and subsequent interest payments willbe the 20th of every month.
(Note) The interest rate for long-term borrowing will be effectively fixed at 0.75315% with the conclusion of theEstablishment of Interest Rate Swap.
3.

Future outlook
Since the impact of the Establishment of Interest Rate Swap on the operating results for the fiscal period
ending July 2019 (February 1, 2019 to July 31, 2019) and January 2020 (August 1, 2019 to January 31, 2020)
announced in “Financial Report for Fiscal Period Ended January 31, 2019 (REIT)” dated March 15, 2019 isminimal, 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 Establishment of Interest Rate Swap, there are no changes to“Part 1. Fund Information, I. Overview of the Fund, 3. Investment Risks” stated in the semiannual securities
report (Japanese only) on October 30, 2018.

* Star Asia Investment Corporation website address: http://starasia-reit.com/en/2