July 25, 2023
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 Signing of Construction Contract for Building Extension (2)(Funabashi Hi-tech Park Factory I)
Star Asia Investment Management Co., Ltd. (the “Asset Manager”) to which Star Asia Investment Corporation(“SAR”) entrusts the management of its assets announces today that, concerning “Funabashi Hi-tech Park FactoryI” (the “Property”) which is an asset managed by SAR, it has been decided to sign a construction contract for thebuilding extension (2) of the Property (the “Building Extension”). Details are stated below.
1. The Purpose and Reason for the Building Extension (2)As a part of active management aiming to maximize unitholders’ interests and with the aim to improve
profitability of the portfolio, SAR is considering multiple options for each of the assets held such asredevelopment, building extension, and asset replacement etc.
Concerning the Property, as announced in the press release dated April 26, 2023 “Notice Concerning Signingof Construction Contract for Building Extension (Funabashi Hi-tech Park Factory I)”, extension construction
works are proceeding (hereinafter referred to as “Building Extension (1)”. This time, a request was received
from the current tenant it would like to dismantle the existing boiler room of the Property and newly build anoffice building utilizing unused capacity and sign a lease agreement.
In response to this request, the Asset Manager has confirmed specic details of the request for building
extension received from the current tenant and calculated the building extension cost based on it, negotiatedthe terms fo the lease after the building extension with the current tenant, and considered the profitability of
the Property after the building extension, and has been able to confirm that the profitability of the Property
will be improved by the building extension by utllizing the unused capacity from the building extension, andrecently has signed a construction contract for the relevant building extension (2) assuming that such extended
building portion will be acquired.
The key points of the Building Extension (2) are as follows.
【Key Points of the Building Extension (2)】
Revenue improvement measure for a long-term span
Contribute to increase in revenues, as rents will arise for the extended building portion. Also, by(1)providing for a non-cancellable period for the 10-year ordinary lease will contribute to long-term
stable revenues.

1(2)Effective use of unused floor area under floor area ratio restrictions
Increase NOI by effective use of unused floor area.

(3)

Rent revenues will continue to be received during the construction period
During the construction period, the current lease agreement will continue to be in effect, andthere is no downtime for rent revenues.

2. General Description of the Building Extension (1) and (2)Property

LGC-09No.

The Property

After extension (1)After extension (2)(before extension)(Note 1)

(Note 1)Name of specified asset

Funabashi Hi-tech Park Factory I

Type of specified asset

Trust beneficial interest

Trustee

Mitsubishi UFJ Trust and Banking Corporation

Location

606-11 Suzumi-cho, Funabashi-shi, Chiba and others

Date acquired (expected)

August 1, 2020

December 28, 2023

Form of ownership

Land

Proprietary ownership

Site area

13,420.44 ㎡

Use district

Industrial district

Building coverage
ratio(designated)

Floor area ratio(designated)(expected)

32.72% (60%)

34.88% (60%)

35.63% (60%)

62.16% (200%)

66.03% (200%)

66.64% (200%)

Form of ownership

Proprietary ownership

Total floor area

8,340.98 ㎡

UseFactory(Note 2)

8,868.22 ㎡(Note 3)

Factory

8,983.56 ㎡(Note 4)

Factory / OfficeConstruction works

Building

Timing ofconstruction

June 21, 2023

May 19, 2003

Structure/(Extension (1))

expected to begin in
August 2023 (expected)(Extension (1) and(2))

Steel construction, galvanized steel roof, 2-stories highno. of stories
PM Company

Tokyo Capital Management Co., Ltd.

Master lease company

SAR

Type of master lease

Pass-throughSecurity

UnsecuredSpecial notations

None
Toyo Construction Co.

DesignerLtd. First Class Architect

JFE CONFORM Co. Ltd. (Extension (1) and (2))

OfficeContractor

Toyo Construction Co.
Ltd.

JFE CONFORM Co. Ltd. (Extension (1) and (2))(Note 1) Stated based on the plan assumed by the Asset Manager based on the Lease Option Agreement, theconstruction confirmation application drawings etc., and the construction contract, etc, as of today. As oftoday, an appraisal report related to the appraisal value after the Building Extension (1) and (2) and theseismic risk evaluation report regarding earthquake resistance have not been obtained. Such appraisal reportand seismic risk evaluation report regarding earthquake resistance are planned to be obtained after the2construction is completed.
(Note 2)

Total floor space indicates the leasable floor space in the building lease agreement before the extension.

(Note 3)

The total floor area is the area of the entire building as indicated in the application for confirmation(building) for the building extension.

(Note 4)

The total floor area is the area of the entire building as indicated in the application for Confirmation of Changeof Plan (building) for the building extension.

3. Effect of the Building Extension (1) and (2)Before extension
Total rentable area
8,340.98 ㎡
Floor area usage ratio(Note 2)62.16 %/ 200 %(Current / Designated)
Appraisal value
1,710 million yen(Survey value)
110 million yen
Annual NOI(Note 3)After extension (1)After extension (2)8,819.65 ㎡
66.03% /200%

8,902.08 ㎡
66.64% /200%

Appraisal report is planned to be obtained after theconstruction is completed.

134 million yen(Note 4)140 million yen(Note 4)(Note 1) 0.1% of the total leasable area of the assets held as of the end of the fiscal period ended January 31, 2023.
(Note 2) Gross floor area (area subject to floor area ratio restrictions) ÷ site area × 100(Note 3) The figures stated are 2 times the actual figures recorded for the fiscal period ended January 31, 2023.
(Note 4) This is the annual estimate figure, based on the rents stated in the Lease Option Agreement, and after
excluding special factors of the year of construction completion.

4.

The timing and amounts of payment of the total project cost for the Building Extension (2)The total project cost of the Building Extension (2) is estimated to be approximately 53 million yen (excludingtaxes)(Note 1). The payments are planned to be made by appropriating own funds.
The schedule of payments are as follows:
Amount expected to be paid in fiscal period
53 million yen (estimated amount)ending January 31, 2024 (16th fiscal period)(Note)Includes design supervision fee, survey costs etc.
(Note)The appropriateness of the total project cost has been confirmed with construction estimates and otherdocuments. The additions (1) and (2) are the utilization of unutilized floor space, and do not involve theacquisition of new land or other assets.

5.

General Description of the Contractor
Name

JFE CONFORM Co. Ltd. (Note)

Location

Keihin Building 7th Floor
1-1 Minami-wataridacho, Kawasaki-ku, Kawasaki-shi, Kanagawa

Representative
Main Business

Representative Director and President, Akira Kido
1. Contract and consulting work for the design, supervision, and implementation ofcivil engineering and construction works.
2. Contract and consulting work for the design, supervision, and implementation ofextension, renovation, remodeling, repair, refurbishment works of residences,office buildings, factories and other buildings and ancillary facilities. Real estateappraisal work.
3. Design, supervision, and construction of exteriors and landscapes accompanying
the preceding item and related consulting work. Consulting related to personalproperty.

34.

CapitalManufacturing, sale, and construction implementation of lighting, air conditioning,plumbing facilities, furniture, interior decorations etc. related to each of thepreceding items.
5. Various demolition works.
6. All businesses incidental to or related to each of the above items.
300 million yen

Established

August 31, 1972

Net asset

Not disclosed, as consent for such disclosure has not been obtained from the company.

Total asset
Major shareholders andJFE Civil Engineering & Construction Corp.

100%

shareholding ratio
Relationship with SAR and the Asset Manager
Capital relationship

There is no capital relationship to report.

Personnel relationship

There is no personnel relationship to report.

Business relationship

There is no business relationship to report, other than the signing of the construction
contruct for the Building Extension.

Related party or not

The company is not a related party of SAR or the Asset Manager.

（Note）The contract counterparty is not a related party of SAR or the Asset Manager.

6. Details of the Lease Option Agreement (Note 1)
Contract counterparty
Current tenant (Number of tenants: 1) (Note 2)
Name of Property
Funabashi Hi-tech Park Factory I
Net rentable area
8,902.08 ㎡
Leased area
8,902.08 ㎡
Rent
Not disclosed (Note 3)
Deposit and Guarantee Money Not disclosed (Note 3)
Signing date of building lease
July 19, 2023
option agreement
Type of lease contract
Ordinary building lease contract
Term of lease contract
10 years from the delivery date, with provision for automatic renewal
every 3 years.
Revision of Rents
Revision possible at the time of contract renewal.
Early termination
Not allowed for 10 years.
(Note 1)

The above is described based on the Option Lease Agreement signed on July 19, 2023.

(Note 2)The contract counterparty is not a related party of SAR or the Asset Manager.

(Note 3)

“Rent” and “Deposit and Guarantee Money” are not disclosed, as consent for disclosure has not beenobtained from the current tenant.

7.

Building Extension (2) Time Schedule
July 25, 2023
Sign construction contract
Around August 2023
Commence building extension (2) construction works (expected)
Around December 2023
Complete building extension (1) and (2) construction works (expected)
Around January 2024
Begin operations of the extended building (expected)

8.

Future Outlook
The impact of the change to the planned acquisition date of the Class A Beneficial Interest on the operating
results is immaterial, and there are no changes to the forecast of operating results for the fiscal period ending
July 31, 2023 (February 1, 2023 to July 31, 2023) and the fiscal period ending January 31, 2024 (August 1,42023 to January 31, 2024).
9.

Other matters necessary for investors to appropriately understand the relevant information and makedecisions
Concerning the risks related to the Building Extension, there are no changes to the contents described in“Part I: Fund Information / Section 1 - Status of the Fund / 3. Investment Risks” of the Securities Reportsubmitted on April 28, 2023.

*Star Asia Investment Corporation website address:

https://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated July 25, 2023. However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

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