December 1, 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 Acquisition of Land with Leasehold Right (acquisition of the limited proprietary
right of land with leasehold right of Higashi Kobe Center Building)Star Asia Investment Management Co., Ltd. (the “Asset Manager”), to which Star Asia Investment
Corporation (“SAR”) entrusts the management of its asset, announces today its decision to acquire the land withleasehold right of “Higashi Kobe Center Building” (the “Acquired Asset”, and the transaction to acquire thisownership is referred to as the “Acquisition”).
1.

Overview of the Acquired Asset(1)
Acquired Asset(2)

Property name

(3)
(4)
(5)
(6)

Location (Lot number)
Acquisition priceContract date
Acquisition date

： Real estate property (limited proprietary right of land with leasehold
right) / area 794.18 square meters.
SAR plans to additionally entrust the Acquired Asset as real estate
property immediately after the Acquisition, and hold the asset as atrust beneficial interest.
： Higashi Kobe Center Building(limited proprietary right of land with leasehold right)：：：：

8-20 Motoyama-minami-machi, Higashinada-ku, Kobe-shi, Hyogo
160 million yen (Note)
December 1, 2023
December 1, 2023

：
：
：
：

Please refer to “5.Profile of Seller” below.
Cash on hand
Payment of entire amount on acquisition date
Yes.
Please refer to “7. Overview of Broker” below.

(delivery and settlement
date)

(7)
(8)
(9)
(10)

SellerAcquisition financing
Settlement method
Presence or absenceof broker(Note) With respect to the “acquisition price”, the sales price found in the agreement with the Seller is stated. The
sales proceeds amount does not include any consumption tax, local consumption tax, and expenses required
for the acquisition.

2.

Reason for the Acquisition
Although SAR had already acquired “Higashi Kobe Center Building”, some of the land was limited
proprietary right of land with leasehold right. The purpose of the Acquisition is to acquire the land withleasehold right, in order to gain full proprietary ownership interest in “Higashi Kobe Center Building”, which
in turn is expected to increase the liquidity of the asset, as well as enhance the property’s asset value.

1

Furthermore, after the Acquisition, as it will no longer be necessary to pay the land rental fee, SAR believes
that the profitability of the property will also improve.
3.

Description of the Acquired Asset
Please refer to the table below for details of the Acquired Asset. Concerning the terms used in the table,please refer to the “Reference Material 3”.

PropertyNo.

OFC-12

Property
nameHigashi Kobe Center Building(limited proprietary right of land withleasehold right)

Type

OFFICE

Overview of specified asset
Type of specified asset

Real estate property (limited
proprietary right of land with Trustee
leasehold right)-

Acquisition price

160 million yen

December 1, 2023

Appraised value

168 million yen (Note 1)
SellerNot disclosed
8-20 Motoyama-minami-machi, Higashinada-ku, Kobe-shi, Hyogo

Location
Indication of residential
address
Nearest station
Type ofLand
ownership
Site area
Building
coverage
ratioType of
Building
ownership
Total floor
area
Construction
completion
Property managementcompany

Acquisition date

8-6-26 Motoyama-minami-machi, Higashinada-ku, Kobe-shi, Hyogo
Approx. 9-minute walk from “Settsu Motoyama” Station of JR Tokai Line
Proprietary ownership (Note 2)
794.18 ㎡

Use district

Neighborhood commercial district

80%

Floor area ratio

300%

-

Use

-

-

Structure and floors--

Master lease company-

Type of master lease-

Security

Unsecured

Trust expiration date--

Status of leasing-

Monthly rent (includingcommon area
maintenance fee)
Security and guarantee
deposits

Total leasable area
Total leased area
Total number of tenants

-

-

-

Occupancy rate
June 2023

July 2023

August 2023

Special notation-

September 2023-

October 2023-

Not applicable(Note 1) After the Acquisition, SAR intends to additionally entrust the Acquired Asset, and hold it as beneficiary interest in
trust.
(Note 2) The land lease agreement between the Seller and the trustee pertaining to the Acquired Asset is expected to be
extinguished due to merger of rights resulting from the additional entrustment described in Note 2 above.

4.

Summary of Real Estate Appraisal Report2-

Main information for valuation indicated in the appraisal report concerning the Acquired Asset is as
described below.
Appraisal value
168 million yen
Appraisal firm

Tanizawa Sogo Appraisal Co., Ltd.

Date of value

October 31, 2023

[1]
[2]
[3]
[4]
[5]
[6]

Ordinary price of the Acquired Asset
Price of existing properties(building and its land (including leasehold right))
Price concerning building and its land (100% ownership) after
Acquisition
Incremental value by adjoining lands ([3]-([1]+[2]))Value allocated to Asset to be Acquired from [4](≒ [4] x distribution ratio (see * below))
Appraisal value concerning Asset to be Acquired ([1]+[5])119 million yen
7,330 million yen
7,570 million yen
121 million yen
49 million yen
168 million yen(*) The distribution ratio for distribution of the incremental value to the Acquired Asset has been assessed as 40.47%, by using (1) the
50/50 method, (2) the total amount ratio method, and (3) the purchase limit ratio method, while placing emphasis on the 50/50
method, and also comparing and considering results obtained by the total amount ratio method and the purchase limit ratio method.

5.

Profile of Seller
Details are not disclosed, as consent for disclosure has not been obtained from the Seller, and this fact falls
under unavoidable circumstances for non-disclosure.
There are no capital relationship, personnel relationship, or business relationship which is worthy of note
between SAR or the Asset Manager and the Seller.

6.

Status of the Seller of the property
The Acquisition is not a transaction to acquire from a person with a special interest with SAR or the AssetManager.

7.

Overview of Broker(1) Overview of the Broker
Details are not disclosed, as consent for disclosure has not been obtained from the Broker which is adomestic company, and this fact falls under unavoidable circumstances for non-disclosure. The broker does
not fall under the category of interested party, etc. under the Investment Trusts Act or “Interested Parties”
as defined in the “Rules on Transactions with Interested Parties” which are internal rules of the AssetManager.

8.

9.

(2) Amounts and breakdown of the brokerage fee
Details are not disclosed, as consent for disclosure has not been obtained from the Broker, and this fact falls
under unavoidable circumstances for non-disclosure.
Transactions with Interested Parties
None
Schedule for the Transaction
December 1, 2023

Acquisition decided
Conclusion of the sale and purchase agreement
Acquisition of the property

10. Settlement method
The settlement for the Acquired Asset is expected to take place by making lump-sum payment of theacquisition price on the planned acquisition date.

3

11. Future outlook
The impact of the Acquisition on the operating results is immaterial, and there are no changes to theforecast of operating results for the fiscal period ending January 31,2024 (August 1, 2023 to January 31,2024) and the fiscal period ending July 31, 2024 (February 1, 2024 to July 31, 2024) announced in the“(REIT) Financial Report for Fiscal Period Ended July 31, 2023” on September 13, 2023.

<Reference Materials>
Reference Material 1: Location maps/photos of exterior property
Reference Material 2: Portfolio list after the Transaction
Reference Material 3: The terms used in the table of Description of Asset to be Acquired* Star Asia Investment Corporation website address: https://starasia-reit.com/en/

4

Reference Material 1

Location maps/photos of exterior of property

OFC-12 Higashi Kobe Center Building5

Reference Material 2
Property
No.

Portfolio list after the Transaction
Property Name

Location(Note 1)

AcquisitionPrice(millionyen)(Note 2)
2,973

Real estateappraisalvalue(million yen)
(Note 3)3,040

Investment
ratio
(%)
(Note 4)

OFC-01

Minami-Azabu Shibuya Building

Minato-ku, Tokyo

OFC-03

Honmachibashi Tower

Chuo-ku, Osaka-Shi, Osaka

6,065

7,080

2.5

OFC-04

Nishi-Shinjuku Matsuya Building

Shibuya-ku, Tokyo

1,763

2,690

0.7

OFC-06

Urban Center Shibuya East(Note 5)
Urban Center Yokohama West(Note5)

Shibuya-ku, Tokyo
Kanagawa-ku,
Yokohama-Shi, Kanagawa
Hakata-ku, Fukuoka-Shi,
Fukuoka
Chuo-ku, Tokyo

2,042

3,290

0.8

6,320

8,400

2.6

2,286

3,260

0.9

1,450

1,500

0.6

2,580

2,790

1.1

7,600

7,570

3.2

OFC-081.2

OFC-09Hakata-eki East Place

OFC-10Nihonbashi Hamacho Park Building

OFC-11

Amusement Media Gakuin Honkan

OFC-12

Higashi Kobe Center Building

OFC-13

Amusement Media Gakuin Shinkan

Shibuya-ku, Tokyo
Higashinada-ku,
Kobe-Shi, Hyogo
Shibuya-ku, Tokyo

1,020

1,230

0.4

OFC-14

Seishin BLDG.

Shinjuku-ku, Tokyo

11,20011,7004.7

OFC-15

Urban Center Kanda Suda-cho

Chiyoda-ku, Tokyo

5,350

5,440

2.2

OFC-16

Urban Center Kanda Tsukasamachi

Chiyoda-ku, Tokyo

4,590

4,570

1.9

OFC-17

Takadanobaba AccessShinjuku-ku, Tokyo

3,990

3,930

1.7

OFC-18

Azabu Amerex BLDG.

Minato-ku, Tokyo

2,780

2,890

1.2

OFC-19Hiei-Kudan BLDG.

2,400

2,400

1.0

OFC-20Urban Center Shin-Yokohama

2,300

2,570

1.0

OFC-21The Portal Akihabara

Chiyoda-ku, Tokyo
Kohoku-ku, Yokohama-Shi,
Kanagawa
Chiyoda-ku, Tokyo

1,510

1,490

0.6

OFC-22

Urban Center Tachikawa

1,804

2,010

0.7

OFC-23

Urban Center Hakata

2,870

3,250

1.2

OFC-24

Urban Center Fujisawa

Tachikawa-Shi, Tokyo
Hakata-ku, Fukuoka-shi,
FukuokaFujisawa-Shi, Kanagawa

2,054

2,200

0.9

74,947

83,300

31.1

RTL-01

La Park Kishiwada

Kishiwada-Shi, Osaka

5,400

5,200

2.2

RTL-02

Suroy Mall Chikushino

Chikushino-Shi, Fukuoka

6,550

6,310

2.7

RTL-03

Seiyu Minakuchi

Koka- hi, Shiga

3,320

3,330

1.4

RTL-05

BAGUS Ikebukuro West

Toshima-ku, Tokyo

2,984

3,500

1.2

RTL-06abeno nini (Retail)Abeno-ku, Osaka-Shi, Osaka

9,500

10,500

3.9

Retail Subtotal

27,754

28,840

11.5

RSC-01

Urban Park Azabujuban

Minato-ku, Tokyo

2,045

2,950

0.8

RSC-02

Urban Park Daikanyama

6,315

10,100

2.6

RSC-05

Urban Park Namba

1,490

1,540

0.6

RSC-07

Urban Park Kashiwa

Shibuya-ku, Tokyo
Naniwa-ku, Osaka-Shi,
Osaka
Kashiwa-Shi, Chiba

1,186

1,200

0.5

RSC-08

Urban Park Ryokuchi Koen

1,550

1,730

0.6

RSC-10Urban Park Ichigao

1,810

2,180

0.8

RSC-11

Urban Park Gyotoku

Suita-Shi, Osaka
Aoba-ku, Yokohama-Shi,
Kanagawa
Ichikawa-Shi, Chiba

1,430

1,610

0.6

RSC-12

Shiroi Logiman

Shiroi-Shi , Chiba

2,470

2,520

1.0

RSC-13

Urban Park Sekime

Jyoto-ku, Osaka-Shi, Osaka

2,150

2,470

0.9

Office Subtotal

6

RSC-14

Urban Park Imazato

Ikuno-ku, Osaka-Shi, Osaka

993

1,110

0.4

RSC-15

Urban Park Yoyogi

1,740

1,990

0.7

RSC-16

Urban Park Tokiwadai Koen

3,506

4,090

1.5

RSC-17

Urban Park Mitsuike Koen

3,160

3,620

1.3

RSC-18

Urban Park Ryogoku

1,115

1,310

0.5

RSC-19Urban Park Mizonokuchi

2,019

2,100

0.8

RSC-20Urban Park Miyamaedaira

1,060

1,250

0.4

RSC-21

Urban Park Tsurumi

1,113

1,190

0.5

RSC-22

Urban Park Mitaka

Shibuya-ku, Tokyo
Hodogaya-ku,
Yokohama-Shi, Kanagawa
Tsurumi-ku, Yokohama-Shi,
Kanagawa
Sumida-ku, Tokyo
Takatsu-ku, Kawasaki-Shi
Kanagawa
Miyamae-ku, Kawasaki-Shi
Kanagawa
Tsurumi-ku, Yokohama-Shi
Kanagawa
Mitaka-shi, Tokyo

743

1,010

0.3

RSC-23

Urban Park Kamata Minami I

Ota-ku, Tokyo

641

864

0.3

RSC-24

Urban Park Kamata Minami II

Ota-ku, Tokyo

1,375

1,720

0.6

RSC-25

Urban Park Umejima

Adachi-ku, Tokyo

1,032

1,140

0.4

38,94347,694

16.2

6,942

7,690

2.9

3,560

4,330

1.5

7,875

8,950

3.3

LGC-01

Iwatsuki Logistics

LGC-02

Yokohama Logistics

LGC-03

Funabashi Logistics

Residence Subtotal
Iwatsuki-ku, Saitama-Shi,
Saitama
Kanagawa-ku,
Yokohama-Shi, Kanagawa
Funabashi-Shi, Chiba

LGC-04

Baraki Logistics

Ichikawa-Shi, Chiba

4,700

5,230

2.0

LGC-05Tokorozawa Logistics

Tokorozawa-Shi, Saitama

1,300

1,550

0.5

LGC-07

Funabashi Nishiura Logistics II

Funabashi-Shi, Chiba

821

891

0.3

LGC-08

Matsubushi Logistics

Kitakatsushika, Saitama

2,755

3,310

1.1

LGC-09Funabashi Hi-Tech Park Factory I

Funabashi-Shi, Chiba

1,710

2,070

0.7

29,66334,021

12.3

Kita-ku, Osaka-Shi, Osaka
Naniwa-ku, Osaka-Shi,
Osaka

2,069

2,280

0.9

1,750

1,460

0.7

Edogawa-ku, Tokyo

3,827

3,440

1.6

3,248

3,200

1.3

1,970

1,930

0.8

2,500

2,440

1.0

3,180

3,140

1.3

2,000

1,450

0.8

3,600

3,770

1.5

Chuo-ku, Tokyo
Chuo-ku, Sapporo-Shi,
Hokkaido
Chuo-ku, Fukuoka-Shi,
FukuokaMinami-ku, Hiroshima -Shi,
Hiroshima

17,80018,600

7.4

6,700

7,040

2.8

5,000

5,370

2.1

4,100

4,280

1.7

Kagoshima-shi, Kagoshima

3,800

4,260

1.6

Logistics facility Subtotal
HTL-01R&B Hotel Umeda East

HTL-02

Smile Hotel Namba

HTL-03REMBRANDT STYLE Tokyo
Nishikasai

HTL-04

BEST WESTERN Yokohama

HTL-05
HTL-06
HTL-07The BREAKFAST HOTEL FUKUOKATENJIN
GLANSIT AKIHABARAREMBRANDT STYLE Tokyo
Nishikasai Grande

HTL-08

KOKO HOTEL Osaka Namba

HTL-09abeno nini (Hotel)

HTL-10

KOKO HOTEL Ginza 1-Chome

HTL-11

KOKO HOTEL Sapporo Ekimae

HTL-12

KOKO HOTEL Fukuoka Tenjin

HTL-13

KOKO HOTEL Hiroshima Ekimae

HTL-14

KOKO HOTEL Kagoshima
Tenmonkan

Tsurumi-ku, Yokohama-Shi,
Kanagawa
Chuo-ku, Fukuoka-Shi ,FukuokaChiyoda-ku, Tokyo
Edogawa-ku, Tokyo
Naniwa-ku,Osaka-Shi,
Osaka
Abeno-ku, Osaka-Shi, Osaka

7

HTL-15

Fino Hotel Sapporo Odori

HTL-16

Best Western Plus Fukuoka
Tenjin-minami

Chuo-ku, Sapporo-Shi,
Hokkaido
Chuo-ku, Fukuoka-Shi,
Fukuoka
Hotel Subtotal

Total

4,200

4,250

1.7

3,800

4,390

1.6

69,54471,30028.9

240,851

265,155100.0(Note 1) “Location” indicates the minimum independent administrative district of which each asset held by SAR as oftoday (the “Existing Assets (real estate, etc.)”) and Asset to be Acquired is located except for mezzanine loan
debt and silent partner equity interest described in the <Other Assets> below.
(Note 2) “Acquisition price”, with respect to each asset already acquired (real estate properties etc.) other than
“Minami-Azabu Shibuya Building”, is the purchase price stated in the respective sale and purchase agreement.
With respect to Higashi Kobe Center Building which includes the Acquired Asset, the total amount of the sales
price stated in the respective agreements with Seller has been stated. The sales price does not include any
consumption tax, local consumption tax, and expenses required for the acquisition. However, with respect to“Minami-Azabu Shibuya Building”, as it is a sale and purchase agreement for multiple real estate properties
where the price has not been set for each individual property, the stated “acquisition price” is the amountcalculated by taking the aggregate purchase price of the multiple properties, and pro-rating such amountbased on the ratio of the appraisal value amounts at the time of acquisition of the properties. Furthermore,regarding properties which were inherited due to merger, the amounts stated in the real estate appraisal
reports with the valuation date as of July 31, 2020 which is the acceptance value have been stated.
(Note 3) Real estate appraisals are outsourced to the Japan Real Estate Institute (JREI), Daiwa Real Estate Appraisal Co.,
Ltd, and the Tanizawa Sogo Appraisal Co., Ltd. Concerning “Real estate appraisal value”, for already acquired
assets (real estate properties etc.) the appraisal values stated in the real estate valuation reports withvaluation dates as of July 31, 2023 are stated, and with respect to the property decided to be acquired asannounced in the press release dated August 7, 2023 entitled “Notice Concerning Acquisition and Lease
Contract with New Tenants, and Transfer, of Real Estate Beneficiary Interests in Trust”, the appraisal value
amount stated in the real estate appraisal report with the valuation date of July 1, 2023 is stated. Regarding
the Acquired Asset, the normal price for the complete real estate (full ownership) which has been calculated
in order to calculate the appraisal value within the real estate appraisal report with the valuation date being
October 31, 2023 is stated. All such amounts have been rounded to the nearest million yen.
(Note 4) “Investment ratio” is the ratio of acquisition price for each Existing Asset (real estate, etc.) / Acquired Asset to
the total of acquisition prices of each Existing Asset (real estate, etc.) / Acquired Asset each rounded to thefirst decimal place.
(Note 5) Property No. RSC-23 “Urban Park Kamata Minami I”, Property No. RSC-24 “Urban Park Kamata Minami II”, andProperty No. RSC-25 “Urban Park Umejima” were acquired on December 1, 2023.

8

Reference Material 3

The terms used in the table of Description of Acquired Asseta. Explanation on “Property no.” and “Type”
Property Number column and Type column: Each Acquired Asset by SAR is categorized by use as OFC (office), RTL(commercial / retail), RSC (residential), LGC (logistics), or HTL (hotel). Then, for each category, serial numbers are
given to the assets in the category. In case of a property which could straddle two or more categories, it shall fallunder the category from which the property generates the largest sum of assumed rent income.
b. Explanation on “Overview of specified asset”(a) "Acquisition price" column: Herein is shown the planned acquisition price of the Asset to be Acquired as
described in the purchase agreement of the Acquired Asset (excluding consumption tax, local consumption tax,
and expenses required for the acquisition), after rounded to the nearest million yen.
(b) "Acquisition Date" column: Herein is shown the date (MMDDYY) of acquisition by SAR.
(c) "Location" column: Herein is shown the certified address in registry. "Indication of residential address" column:
Herein is shown the postal address. If postal address is not available, registered address of the property (if there
are two or more of them, one is selected) is shown.
(d) "Appraisal value" column: The appraisal value amount stated in the real estate appraisal report where the date of
the valuation is October 31, 2023 is stated, with amounts rounded to the nearest million yen.
(e) There is no special interested relationship between The Tanizawa Sogo Appraisal Co., Ltd. and SAR or AssetManager.
(f) "Land" column:(i) "Type of ownership" column: Herein is shown the type of right(s) held by respective trustee of the Acquired
Asset.
(ii) "Site area" column: Herein is shown the land area as recorded in registry, unless otherwise noted. For thisreason, it possibly might not be equal to the actual.
(iii) "Use district" column: Herein is shown the type of use in accordance with Article 8, Paragraph 1 and Item 1 of
the Urban Planning Act (Act No.100 of 1968; including its amendments) (“Urban Planning Act”).
(iv) "Building coverage ratio" column and "Floor area ratio" column: Herein is shown the pertinent figure in eachcolumn in accordance with the relevant laws and regulations (the Building Standards Act, the Urban Planning Act,etc.).
(g) Explanation on “Special notations”
Special notation column: Herein is shown a description not only on the items considered material in relation to
the involved rights and assumed uses but also on the appraisal value of, profitability of, and the other items
considered material in relation to the disposability of the Acquired Asset.

9