January 12, 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: 03-5425-1340

Notice Concerning Debt Financing
Star Asia Investment Corporation (“SAR”) announces today it has decided on debt financing (the “Debt financing”),
as described below.
1. Details of Debt financing
TermLong-term(Note 1)

LenderSumitomoMitsui
Banking
Corporationand Mizuho
Bank, Ltd.
A syndicateof lenders
withSumitomo
Mitsui
Banking
Corporationand Mizuho
Bank, Ltd. asarrangers

Borrowing

Interest rate

amount(Note 5)(million yen)

(Note 6)

1,470
(Note 3)(Note 4)

4,690

Date of

Borrowingborrowing

methodFebruary
2, 2018

Borrowingbased on theindividual
term loan
agreementplanned to
be dated
January 31,
2018 basedon the basic
agreement
dated April
15, 2016
assuming
Sumitomo
Mitsui
Banking
Corporation
as an agent.

Base interest
rate +0.20%

Base interest
rate +0.60%(Note 2)

Maturity

Principaldaterepayment(Note 7)methodSecurity

February 20,2019

Lump sum
repayment onmaturity date
(Note 8)

Unsecuredandunguaranteed

February 20,2023(Note 1) 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., and The Bank of Fukuoka, Ltd.
(Note 3) For 470 million yen out of the anticipated long-term debt balance of 1,470 million yen from Sumitomo Mitsui BankingCorporation and Mizuho Bank, Ltd., we expect to prepay the partial amount through funds raised assuming that all theinvestment units of the investment units to be newly issued in the third-party allotment (Please refer to “NoticeConcerning Issuance of New Investment Units and Secondary Offering of Investment Units” announced today; the“Third-Party Allotment.”) related to the offering have been issued in the 5th fiscal period, and to prepay the rest of theamount through consumption tax refund expected to be received in the 6th fiscal period. Note that, as the number ofissued units in the actual Third-Party Allotment and the amount of the consumption tax refund are both subject toNote:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to thedecision of debt financing, and not 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, asamended (the “Securities Act”) and may not be offered or sold in the United States absent registration or anexemption from registration under the Securities Act. No offering or sale of securities in the United States will
be made in connection with the above-mentioned transactions. This press release is not for publication,
distribution or release, directly or indirectly in or into the United States of America.

1change, it is possible that these amounts may not fully cover repayment of the amount of borrowings noted above.
(Note 4) Borrowing amount may be changed before the actual date of borrowing, in consideration of the amount of proceedsfrom the issuance of new investment units through public offering (Please refer to “Notice Concerning Issuance of New
Investment Units and Secondary Offering of Investment Units” announced today.) and other relevant factors.
(Note 5) Financing fees and other charges to the lenders are not included.
(Note 6) The first interest payment date is March 20, 2018 and following interest payment dates are 20th of every month
thereafter and the principal repayment 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 preceding business day are respectively set as
the interest payment date. For borrowings with floating interest rates, the base interest rate applicable to thecalculation 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 thepoint of time after 11 a.m. and as close to 11 a.m. as possible on the date two business days immediately before eachinterest payment date (two business days before the drawdown date for the first interest payment date). However, incase the concerned interest rate is not announced for some reasons, the interest rate (annual rate) determinedreasonably by the agent shall be used, or in case the period corresponding to the first interest rate calculation period
or the interest 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/).
(Note 7) If a principal repayment date is not a business day, repayment shall be made on the next business day; however, if suchdate falls on the next month, repayment shall be made on the immediately preceding business day.
(Note 8) If certain requirements, such as advance notification in writing by SAR, are met during the period after implementing
the Debt financing and by the maturity date, SAR is eligible to repay the borrowed amounts either in whole or in partprior to the maturity date.

2. Reasons for Debt financing
To be allocated for a part of the acquisition of real estate beneficiary interests in trust (Number of property: 6, total
anticipated acquisition price: 10,743 million yen) described in “Notice Concerning Acquisition of Real Estate
Beneficiary Interests in Trust and Lease Contract with New Tenants” announced today and partial payment ofacquisition-related expenses.
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
6,160 million yen in total(2) Specific use of funds to be procured and schedule of expenditureSpecific use of funds
To be allocated for a part of the acquisition of real estate beneficiaryinterests in trust (Number of property: 6, total anticipatedacquisition price: 10,743 million yen) and partial payment ofacquisition-related expenses stated in Section 2 above.

Note:

AmountSchedule ofexpenditure

6,160 million yen

February 2,2018This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to thedecision of debt financing, and not 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, asamended (the “Securities Act”) and may not be offered or sold in the United States absent registration or anexemption from registration under the Securities Act. No offering or sale of securities in the United States will
be made in connection with the above-mentioned transactions. This press release is not for publication,
distribution or release, directly or indirectly in or into the United States of America.

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4. Status of Loans etc. after Debt financing
Before theBorrowing
Short-term borrowings
Long-term borrowings
Total borrowings
Investment corporation bonds
Total borrowings and investment corporation bonds
Other interest-bearing liabilities
Total interest-bearing liabilities

37,35037,35037,35037,350(Unit: million yen)
After theChange
Borrowing
43,5106,160
43,5106,160
43,5106,160
43,5106,160

5. 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 “PartII. Reference Information /II. Information Supplementary to Reference Documents/3. Investment Risks” stated in
the Securities Registration Statement submitted on January 12, 2018.
<Other Press Releases Announced as of Today>- Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units- Notice Concerning Acquisition of Real Estate Beneficiary Interests in Trust and Lease Contract with New Tenants- Notice Concerning Revision to Forecasts for Operating Results for the 4th Fiscal Period Ending January 31, 2018
and 5th Fiscal Period Ending July 31, 2018, and Forecasts for Operating Results and Distribution for the 6th Fiscal
Period Ending January 31, 2019
- Supplemental Material on Press Releases (acquisition of properties through public offering) Announced as ofToday- Notice Concerning Execution of Agreement on Preferential Negotiation on HAKUSAN HOUSE* 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 publicationsof 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. Thispress release has been prepared for the purpose of announcing to the public certain matters relating to thedecision of debt financing, and not 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, asamended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. No offering or sale of securities in the United States will
be made in connection with the above-mentioned transactions. This press release is not for publication,
distribution or release, directly or indirectly in or into the United States of America.

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