August 21, 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: +81-3-5425-1340

Notice Concerning Partial Amendment to the Management Guidelines of the Asset Manager
Star Asia Investment Management Co., Ltd. (the “Asset Manager”), to which Star Asia Investment
Corporation (“SAR”) entrusts the management of its assets, announces today the Asset Manager’s resolution tomake a partial amendment to the management guidelines, which are internal rules of the Asset Manager, at theBoard of Directors meeting held today. Details are as follows.

1.

Summary and Background of the Amendment
SAR invests in office, retail, residential, logistics and hotel properties as a diversified REIT with an aim
to maximize unitholders’ interests and pursue the development of a portfolio by which SAR can achieve
income “stability” (prevention of reduction of income as a result of change of economic environment) and“growth” (future increase of income) by accurately grasping the features of each asset type.
By way of the partial amendment to the management guidelines, which are internal rules of the AssetManager, “purpose-built student accommodation” was newly added as one of SAR’s investment target
asset types. The reason of the amendment is as follows.
<Reason for adding “purpose-built student accommodation”>
In anticipation of the increasing number of foreign exchange students to Japan, SAR and the AssetManager’s sponsor, Star Asia Group, expanded their business into the development, management, andoperation of international purpose-built student accommodations (Note 1) in Japan as a joint effort withGlobal Student Accommodation Group (“GSA Group”) (Note 2). GSA Star Asia K.K. (“GSA Star Asia”), asubsidiary of GSA Star Asia Japan Limited (“GSASA LTD”) (Note 3) which Star Asia Group and GSA Group
have each contributed 50% equity into, will be developing, managing, and operating purpose-built student

Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to the decision of partial amendment
to the management guidelines of the asset manager, and not for the purpose of soliciting any investment, within or outsideof Japan. Additionally, this press release is not an offer of securities for sale in the United States. The securities referr ed toherein have not been, and will not be registered under the United States Securities Act of 1933, as amended (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 theabove-mentioned transactions. This press release is not for publication, distribution or release, directly or indirectly in or
into the United States of America.

1accommodations in Japan. Their mid-to long-term supply target is to build 20,000 beds for student use. The
first such development project was HAKUSAN HOUSE which was completed in February 2018.
By and between SAR and GSASA LTD, an investment advisor for equity investors of the TMK that owns
the HAKUSAN HOUSE, an agreement on preferential negotiation rights for the HAKUSAN HOUSE wasexecuted in January 2018. For more details, please refer to the “Notice Concerning Execution of Agreement
on Preferential Negotiation on HAKUSAN HOUSE” announced on January 12, 2018. Also, by and between
SAR and GSASA LTD, another agreement on preferential negotiation rights for the Project Shimotakaido(the second development project of GSA Star Asia) was executed today. For more details, please refer tothe “Notice Concerning Execution of Agreement on Preferential Negotiation Rights to secure Acquisition
Pipeline for Future Growth” announced today.
As explained above, (1) Star Asia Group is expected to continue supplying purpose-built student
accommodations developed by GSA Star Asia and it is expected that SAR will be given more opportunity topreferentially consider acquiring such purpose-built student accommodations as with implemented for theHAKUSAN HOUSE and Project Shimotakaido, and (2) as stated below in “SAR’s evaluation of purpose-built
student accommodations”, purpose-built student accommodations are deemed to retain uniquecharacteristics compared to other asset types that are SAR’s investment targets. Hence, SAR has identified
purpose-built student accommodations as an independent investable asset type, and consequently, hasmade appropriate amendments to the management guidelines to reflect such insight.
(Note 1)“International purpose-built student accommodations” refer to student accommodation that havecharacteristics which are not so common in Japan with respect to facility and operational characteristics.
Outside of Japan, purpose-built student accommodations operated by the GSA Group are built withmulti-purpose rooms, shared kitchen space, dining rooms, and other student facilities that maximize
communal space helping to cultivate an environment where local and foreign students alike can engage incultural exchange. In addition to this, student-oriented events are hosted at the facilities and multi-lingual
concierge services are available.

(Note 2)

GSA Group has been engaged in development, management and operations of purpose-built student
accommodations globally for more than 10 years since it launched its operations in London and Australia in
2007.

(Note 3)

GSASA LTD is a 50/50 joint venture established by GSA Group (a global player in the purpose-built student
accommodation sector) and Star Asia Group, and is a wholly owning parent company of GSA Star Asia.

(Note 4)

GSA Star Asia is a wholly-owned subsidiary of GSA SA LTD. Based on its expectation that the number ofinternational students will increase going forward backed by the “Super Global Daigaku Sosei Shien Jigyou”
project promoted by the Japanese government, GSA Star Asia aims to develop, manage and operate
purpose-built student accommodations for international students and Japanese students looking forinter-cultural exchange with international students.

(Note 5)

SAR does not own any purpose-built student accommodations and has not determined to acquire any
purpose-built student accommodations as of today. In addition, there is no guarantee that SAR will acquireor hold any purpose-built student accommodations in the future.

<SAR’s evaluation of purpose-built student accommodations>
As part of the Japanese government’s objective to improve Japan’s competitiveness in the global area
and to foster global-minded resources, it is promoting the “Super Global Daigaku Sosei Shien Jigyou”. TheNote： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to the decision of partial amendment
to the management guidelines of the asset manager, and not for the purpose of soliciting any investment, within or outsideof Japan. Additionally, this press release is not an offer of securities for sale in the United States. The securities referr ed toherein have not been, and will not be registered under the United States Securities Act of 1933, as amended (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 theabove-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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government has set goals on the ratio of foreign exchange students for each university participating in theproject which is deemed as one of the performance indicators for success of the project. In addition, thegovernment will provide assistance for universities that are strengthening their capabilities to foster
global-minded students.
Against such backdrop, SAR and the Asset Manager deem that it is feasible to provide a hospitablecommunity environment for foreign exchange students and Japanese students looking for inter-cultural
exchange with international students whose number is projected to increase going forward. Given that theunderlying demand for such environment is expected to increase and that they are quite resilient toeconomic impacts, SAR expects that purpose-built student accommodations developed by GSA Star Asia
will generate stable revenue. In addition, judging from tenant characteristics, rent revisions are plausible
simultaneously with the periodic replacement of student tenants. Hence, such positive characteristics may
contribute to revenue growth when market conditions are favorable. Hence, SAR expects purpose-built
student accommodations to contribute to both income stability and growth.
<Concept of GSA Star Asia’s purpose-built student accommodations>
Provide both hard (dwelling, communal space, and facility components) and soft aspects (operationalcomponents) that make up a hospitable and stress-free living environment for Japanese and foreign
students alike that augments the cultivation of intercultural exchange and foster collegiate communities.
The following hard and soft aspects were provided at the HAKUSAN HOUSE upon its completion inFebruary 2018.
1. Ample communal space (shared kitchen and dining, study rooms and theater rooms)
2. Student-oriented events to promote cultural and collegiate exchange
3. Concierge services (offered in English as well)
4. Clear and transparent rent structure where individual tenant contracts between providers are
not required for utilities, internet connection and basic lifestyle infrastructure as the relevantcosts are included in the rent.

2.

Overview of the Amendment to Management Guidelines“Purpose-built student accommodations” were added as an investment target asset type, and otherancillary changes have been made.
① Added investment target asset type
Before the management guidelines were amended, SAR invested in office, retail, residential,
logistics and hotel properties. With the newly added purpose-built student accommodations into themix, SAR’s investment target asset types are office, retail, residential, logistics, hotel properties, andpurpose-built student accommodations.
② Amended investment target area
By identifying purpose-built student accommodations as an investment target asset type,
SAR’s investment target area has been changed as follows. The parts that were changed areunderlined.

Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to the decision of partial amendmentto the management guidelines of the asset manager, and not for the purpose of soliciting any investment, within or outsideof Japan. Additionally, this press release is not an offer of securities for sale in the United States. The securities referr ed toherein have not been, and will not be registered under the United States Securities Act of 1933, as amended (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 theabove-mentioned transactions. This press release is not for publication, distribution or release, directly or indirectly in or
into the United States of America.

3AreaUseTokyo Area (70% orhigher investment ratio(acquisitionpriceTarget Area
Tokyo 23 wards, Kawasaki-shi andOffice and retail facility
Residence,logistics

Yokohama-shi
facility,hotel,base))

purpose-built student accommodation

Osaka Area

All asset types

Tokyo, Kanagawa, Saitama and Chiba
Osaka-shi, Osaka (Note 1)

Nagoya Area

Nagoya-shi, Aichi (Note 2)

Fukuoka Area

Fukuoka-shi, Fukuoka (Note 3)

Sapporo Area

Sapporo-shi, Hokkaido
Sendai-shi, Miyagi
Niigata-shi, Niigata

OtherKyoto-shi, Kyoto

government

Sakai-shi, Osaka

designated cities

Kobe-shi, Hyogo
Hiroshima-shi, Hiroshima
Kitakyushu-shi, Fukuoka(Note 1) Residence and logistics facilities include the neighboring areas of Osaka-shi, Osaka(Note 2) Residence and logistics facilities include the neighboring areas of Nagoya-shi, Aichi(Note 3) Residence and logistics facilities include the neighboring areas of Fukuoka-shi, Fukuoka

In accordance with the amendment to management guidelines, SAR’s portfolio management policy ismodified as follows. Below are the excerpts of SAR’s portfolio management policy and changes areunderlined.
(Omitted)
Gaining income stability and growth through diversification of asset types
SAR aims to suppress the fluctuation of revenue due to the economic cycle by making diversified
investment (diversify asset type) in office, retail, residential, logistics, hotel and purpose-built student
accommodation properties, and investment ratio for each asset type shall be 50% (acquisition price basis)or less in principle. Besides, SAR can also pursue income stability (suppression of the fluctuation of revenue
due to the economic cycle) from residential and logistics properties and income growth (future revenuegrowth) from office, retail and hotel properties. In regard to purpose-built student accommodation
properties, SAR can pursue both income stability and growth. Residential and logistics are considered as thestability-driven properties, office, retail and hotel as the growth potential-driven properties andpurpose-built student accommodation as the properties for both stability and growth potential.
(Omitted)
Strategic investment in large-size assets exclusively in 5 central wards of Tokyo
SAR thinks there exists strong demand for office, retail, residential and purpose-built student
accommodation properties in 5 central wards of Tokyo, and the vacancy risks and downside risk of rent are
relatively low in the area. Demand for hotels is also expected to be highly stable on the back of theincreasing number of tourists and business guests. Hence, SAR thinks it is possible to secure stable revenue
by exclusive investment in large assets in the area and SAR plans to implement such investment for
accelerating expansion of its asset size.
Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to the decision of partial amendment
to the management guidelines of the asset manager, and not for the purpose of soliciting any investment, within or outsideof Japan. Additionally, this press release is not an offer of securities for sale in the United States. The securities referr ed toherein have not been, and will not be registered under the United States Securities Act of 1933, as amended (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 theabove-mentioned transactions. This press release is not for publication, distribution or release, directly or indirectly in orinto the United States of America.

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(Omitted)
3.

Date of Change of Management Guidelines
August 21, 20184.

OthersThere is no impact from the partial amendment to the above management guidelines on theoperating results of SAR. However, please refer to the “Notice Concerning Revision to Forecasts forOperating Results for the 6th Fiscal Period Ending January 31, 2019 and Forecasts for Operating Results andDistribution for the 7th Fiscal Period Ending July 31, 2019” for details of new forecast.

<Reference >Other press releases published as of today- Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units- Notice Concerning Acquisition and Lease Contract with New Tenants, and Transfer of Real Estate
Beneficiary Interests in Trust- Notice Concerning Revision to Forecasts for Operating Results for the 6th Fiscal Period Ending January 31,
2019 and Forecasts for Operating Results and Distribution for the 7th Fiscal Period Ending July 31, 2019- Notice Concerning Debt Financing- Notice Concerning Execution of Agreements on Preferential Negotiation Rights to secure Acquisition
Pipeline for Future Growth- Notice Concerning Determination of the Planned Acquisition Date and Change of the Funds for Acquisition- Supplementary Material on Press Releases (Acquisition of Properties through Public Offering) Announced
as of Today* 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
publications of 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. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to the decision of partial amendment
to the management guidelines of the asset manager, and not for the purpose of soliciting any investment, within or outsideof Japan. Additionally, this press release is not an offer of securities for sale in the United States. The securities referr ed toherein have not been, and will not be registered under the United States Securities Act of 1933, as amended (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 theabove-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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