August 31, 2016
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 Obtainment of Preferential Negotiation Rights Pertaining to Acquisition of Assets, etc.
Star Asia Investment Corporation (SAR) announces that it today concluded a “Sale Preferential Negotiation Right
Agreement” with each of the limited liability companies (Godo Kaisha) belonging to SAR’s Sponsor Group (to be
defined below), and obtained preferential negotiation rights pertaining to four properties (collectively orindividually, in accordance with context, the “Properties” or “Property”), as described below.
In addition, SAR announces the minimum purchase prices for the two properties for which SAR holds preferential
negotiation rights, announced in “Notice Concerning Obtainment of Preferential Negotiation Rights Pertaining to
Acquisition of Assets” dated July 8, 2016.
1. Overview of Sale Preferential Negotiation Right Agreement(1) Hakata-eki East PlaceCounterparty
GK Topper
Main details of right
The right for SAR to be able to preferentially negotiate on the acquisition of the asset
subject to the preferential negotiation right when SAR offers the purchase of the Property
during the preferential negotiation period (as defined below), and, by meeting othercertain conditions as well as the requested purchase price being equivalent or higher thanthe minimum purchase price specified below, to request GK Topper to agree to the saleand the sales terms thereof and to sell the asset pursuant to the agreement, unless there
are any prevailing reasonable grounds.
Minimum purchase 2,255,000,000 yen (excluding consumption tax on buildings, etc.)
price
Target asset
Hakata-eki East Place
Agreement execution August 31, 2016
datePreferential
From August 31, 2016 to February 28, 2017
negotiation period
Other
Upon acquisition of the Property, SAR will make decisions in compliance with theinterested-party transaction guidelines of Star Asia Investment Management Co., Ltd.
(the “Asset Manager”) after performing the necessary due diligence and obtaining realestate appraisal. The acquisition date of the Property will be decided upon discussion
between both parties when SAR offers the purchase of the Property within the abovementioned preferential negotiation period.

Although SAR has been granted the preferential negotiation right for the Property, SAR is
not obliged to acquire the Property or may not actually acquire the Property.
Furthermore, SAR will pay no consideration to the counterparty concerning theobtainment of the preferential negotiating right.
(2) Urban Park Kashiwa
Counterparty
GK SAPR4
Main details of right
The right for SAR to be able to preferentially negotiate on the acquisition of the asset
subject to the preferential negotiation right when SAR offers the purchase of the Property
during the preferential negotiation period (as defined below), and, by meeting othercertain conditions as well as the requested purchase price being equivalent or higher thanthe minimum purchase price specified below, to request GK SAPR4 to agree to the saleand the sales terms thereof and to sell the asset pursuant to the agreement, unless there
are any prevailing reasonable grounds.
Minimum purchase 1,186,000,000 yen (excluding consumption tax on buildings, etc.)
price
Target asset
Urban Park Kashiwa
Agreement execution August 31, 2016
datePreferential
From August 31, 2016 to February 28, 2017
negotiation period
Other
Upon acquisition of the Property, SAR will make decisions in compliance with theinterested-party transaction guidelines of the Asset Manager after performing thenecessary due diligence and obtaining real estate appraisal. The acquisition date of theProperty will be decided upon discussion between both parties when SAR offers thepurchase of the Property within the above-mentioned preferential negotiation period.
Although SAR has been granted the preferential negotiation right for the Property, SAR is
not obliged to acquire the Property or may not actually acquire the Property.
Furthermore, SAR will pay no consideration to the counterparty concerning theobtainment of the preferential negotiating right.
(3) BEST WESTERN Tokyo NishikasaiCounterparty
GK Melges
Main details of right
The right for SAR to be able to preferentially negotiate on the acquisition of the asset
subject to the preferential negotiation right when SAR offers the purchase of the Property
during the preferential negotiation period (as defined below), and, by meeting othercertain conditions as well as the requested purchase price being equivalent or higher thanthe minimum purchase price specified below, to request GK Melges to agree to the saleand the sales terms thereof and to sell the asset pursuant to the agreement, unless there
are any prevailing reasonable grounds.
Minimum purchase 3,805,000,000 yen (excluding consumption tax on buildings, etc.)
price
Target asset
BEST WESTERN Tokyo Nishikasai
Agreement execution August 31, 2016
datePreferential
From August 31, 2016 to February 28, 2017
negotiation period
Other
Upon acquisition of the Property, SAR will make decisions in compliance with theinterested-party transaction guidelines of the Asset Manager after performing thenecessary due diligence and obtaining real estate appraisal. The acquisition date of theProperty will be decided upon discussion between both parties when SAR offers thepurchase of the Property within the above-mentioned preferential negotiation period.
Although SAR has been granted the preferential negotiation right for the Property, SAR is
not obliged to acquire the Property or may not actually acquire the Property.
Furthermore, SAR will pay no consideration to the counterparty concerning theobtainment of the preferential negotiating right.
(4) BEST WESTERN Yokohama
Counterparty
GK Melges
Main details of right
The right for SAR to be able to preferentially negotiate on the acquisition of the asset
subject to the preferential negotiation right when SAR offers the purchase of the Property
during the preferential negotiation period (as defined below), and, by meeting othercertain conditions as well as the requested purchase price being equivalent or higher thanthe minimum purchase price specified below, to request GK Melges to agree to the saleand the sales terms thereof and to sell the asset pursuant to the agreement, unless there
are any prevailing reasonable grounds.
Minimum purchase 3,185,000,000 yen (excluding consumption tax on buildings, etc.)
price
Target asset
BEST WESTERN Yokohama
Agreement execution August 31, 2016
datePreferential
From August 31, 2016 to February 28, 2017
negotiation period
Other
Upon acquisition of the Property, SAR will make decisions in compliance with theinterested-party transaction guidelines of the Asset Manager after performing thenecessary due diligence and obtaining real estate appraisal. The acquisition date of theProperty will be decided upon discussion between both parties when SAR offers thepurchase of the Property within the above-mentioned preferential negotiation period.
Although SAR has been granted the preferential negotiation right for the Property, SAR is
not obliged to acquire the Property or may not actually acquire the Property.
Furthermore, SAR will pay no consideration to the counterparty concerning theobtainment of the preferential negotiating right.
2.

Reasons for the obtainment of preferential negotiation rights
SAR was newly granted the preferential negotiation rights from the Sponsor Group (Note 2) for the propertiesof which information SAR obtained based on the “Sponsor Support Agreement” concluded among threeparties, which are SAR, the Asset Manager and Star Asia Management Limited (Note 1), the sponsor of SAR.
SAR obtained the preferential negotiation rights for the Properties in order to secure opportunities to acquire
the Properties which can expect stable income continuously.
With this, SAR aims to achieve external growth by expanding its asset size and further strengthening theportfolio.

(Note 1) Star Asia, including Star Asia Management Limited, is an independent real estate investment group with an
aim to manage funds from investors who seek long-term investment, such as overseas (mostly the U.S.) university

funds, foundations and pension funds, by investing in assets related to real estate, etc. in Japan and other Asian
countries.
(Note 2) The Sponsor Group is (a) Sponsor, (b) Star Asia Management Japan Limited, (c) the Asset Manager’s parent
company (Star Asia Asset Management Co., Ltd.), (d) Malcolm F. MacLean IV, (e) Taro Masuyama and (f) investment
vehicles in Japan that are the investment destination of funds for which Malcolm F. MacLean IV and Taro Masuyama
make investment judgement and that own or acquire investment assets such as real estate.

3.

Features of properties for which preferential negotiation rights were granted(1) Hakata-eki East Place
Property nameHakata-eki East Place
Location
3-15-2 Hakataeki Higashi, Hakata-ku, Fukuoka-shi, Fukuoka and other
Asset type
OfficeSite area
1,129.86m2
Total floor area
6,243.13m2 (including an accessory building (94m2))
Steel-framed reinforced concrete structure
Structure and9 floors above groundfloorsCompletion date February 24, 1986
Property
The Property is a multi-tenant office building in the Hakata-eki-higashi area, which has
information
one of the highest concentrations of office buildings in Fukuoka, and is located an
approximate 9-minute walk from Hakata Station on the JR and Fukuoka City Subway
lines.
The Hakata-eki higashi area is an area which can expect further development going
forward with the completion of the Hakata Station area redevelopment project
including the well-known KITTE Hakata and JRIP Hakata Building opened in 2016 spring.
The Property features include an elegant appearance, enhanced by renovations to theentrance hall, etc. in 2015 on top of the high-class aluminum-wall-curtain-based
façade. It also fully meets the standards typically sought by tenants with regard tovarious facilities, making it appealing to tenant companies from a wide range of fields.
(2) Urban Park Kashiwa
Property nameUrban Park Kashiwa
Location
3-808-1 Kashiwa, Kashiwa-shi, Chiba and other
Asset type
Apartment complex
Site area
1,597.85m2
Total floor area
4,243.7m2
Structure andSteel-framed reinforced concrete structure
floors1 floor below ground / 8 floors above ground
Completion date
Property
information

August 28, 1997
The Property is a family-type residence located an approximate 7-minute walk from
Kashiwa Station on the JR Joban and Tobu Noda Lines. The Kashiwa area, where theProperty is located, boasts high living convenience due to concentration of large retailfacilities in front of Kashiwa Station, such as the well-known Kashiwa Takashimaya as
well as being able to access central Tokyo in about 30 minutes by train (Note). In
addition, it has the characteristics of an academic city centering on the Kashiwanoha
campus, and together with the rich nature it has become an area with a strong appeal
particularly to family households which are the target of the Property. Furthermore,
the area in front of Kashiwa Station can expect further development going forward with
the Kashiwa Station area redevelopment project including Day One Tower completed
at the east exit of Kashiwa Station last year.
The Property features include an elegant tiled façade and high-grade household

facilities in some renovated units, making it highly appealing to family households
which are the main targets of the Property.
(Note) Approximate required time from JR Kashiwa Station to JR Tokyo Station (by JR Joban
Line special rapid service train).

(3) BEST WESTERN Tokyo Nishikasai
Property nameBEST WESTERN Tokyo Nishikasai
Location
6-17-10 Nishikasai, Edogawa-ku, Tokyo and other
Asset type
Hotel
Site area
1,418.00m2
Total floor area
5,293.88m2
Structure andSteel-framed reinforced concrete structure
floors1 floor below ground / 9 floors above ground
Completion date March 19, 1991
Property
The Property is a business hotel located an approximate 2-minute walk from Nishi-kasai
information
Station on the Tokyo Metro Tozai Line. The Kasai/Nishi-kasai area where the Property is
located is known as Tokyo’s bedroom suburbs due to its convenient access to central
Tokyo (about 15 minutes by train (Note)). At the same time, since the area is only 4km
away in direct distance from Maihama Station, which is the nearest station to Tokyo
Disney Resort (“TDR”), it can also take in tourism demand, especially package tours for
TDR.
The Property features include its wide range of guest room types suitable for various
uses, such as single (113 rooms), double (8 rooms), twin (33 rooms) and others (33rooms), as well as restaurants and multi-purpose rooms that can hold various parties,
meetings, seminars and such. Therefore, it is a hotel with strong appeal to a broad range
of users.
(Note) Approximate required time from Nishi-kasai Station on the Tokyo Metro to Otemachi
Station on the Tokyo Metro (using the Tokyo Metro Tozai Line).

(4) BEST WESTERN Yokohama
Property nameBEST WESTERN Yokohama
Location
4-29-1 Tsurumichuo, Tsurumi-ku, Yokohama-shi, Kanagawa
Asset type
Hotel
Site area
782.66m2
Total floor area
4,686.09m2
Structure andSteel-framed reinforced concrete structure
floors1 floor below ground / 9 floors above ground
Completion date
Property
information

September 21, 1987
The Property is a business hotel located an approximate 3-minute walk from Tsurumi
Station on the JR Keihin-Tohoku Line and Keikyu Tsurumi Station on the Keikyu Line. The
Tsurumi area where the Property is located is known as Tokyo’s bedroom suburbs due
to its convenient access to Tokyo Station (about 30 minutes by train (Note)). Not only
that, the area in front of Tsurumi Station has a high level of commercial traffic withconcentration of office buildings, retail facilities, business hotels, etc. affected by the
Tsusumi Station Higashi Area Redevelopment Project, which was completed in 2011.
Furthermore, having good access (20 minutes or less train ride) to major areas in
Kanagawa Prefecture such as Yokohama and Kawasaki as well as to Tokyo International
Airport (Haneda Airport), it is an area which can take in both business and tourism

demands.
The Property features include its wide range of guest room types suitable for various
uses, such as single (144 rooms), double (22 rooms), twin (19 rooms), as well as
restaurants and multi-purpose rooms that can hold various parties, meetings, seminars
and such. Therefore, it is a hotel with strong appeal to a broad range of users.

4.

Preferential negotiation rights pertaining to acquisition of assets obtained as of today
Properties for which SAR has obtained the preferential negotiation rights pertaining to acquisition as of today,
including the two properties announced in “Notice Concerning Obtainment of Preferential Negotiation Rights
Pertaining to Acquisition of Assets” dated July 8, 2016, and their minimum purchase prices (excluding
consumption tax on buildings, etc.) are as follows.
Property name
Asset type
Location
Minimum
purchase price(mn yen)(Tentative name) Baraki Logistics (Note)

Logistics facility

Joytel Gokokuji (Note)

Apartmentcomplex
OfficeHakata-eki East PlaceUrban Park Kashiwa
BEST WESTERN Tokyo Nishikasai

Apartmentcomplex
Hotel

BEST WESTERN Yokohama

Hotel
Total

Ichikawa-shi,
Chiba
Toshima-ku, Tokyo
Fukuoka-shi,
Fukuoka
Kashiwa-shi,
Chiba
Edogawa-ku,
Tokyo
Yokohama-shi,
Kanagawa

4,700
1,460
2,255
1,186
3,805
3,185
16,591(Note) Properties announced in “Notice Concerning Obtainment of Preferential Negotiation Rights Pertaining to
Acquisition of Assets” dated July 8, 2016.

5.

Future outlook
Since the impact of the obtainment of the preferential negotiation rights on the operating results forecast for
the fiscal period ending January 31, 2017 (August 1, 2016 – January 31, 2017) announced on April 20, 2016 is
minimal, there is no revision to the forecast.

* This material is distributed to the press club of the Tokyo Stock Exchange (Kabuto Club), thepress club of the Ministry of Land, Infrastructure, Transport and Tourism, and the press club forconstruction trade publications of the Ministry of Land, Infrastructure, Transport and Tourism.
* Star Asia Investment Corporation website address: http://starasia-reit.com/en/