October 16, 2020

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: Akiko Kanno
Director and CFO
TEL: +81-3-5425-1340

Notice Concerning Establishment of Interest Rate SwapStar Asia Investment Corporation (“SAR”) announces today the establishment of an interest rate swap (the“Establishment of Interest Rate Swap”) concerning the borrowing described below within the long-termborrowings described in “Notice Concerning Debt Financing (refinancing)” dated October 14, 2020, as described
below. Moreover, please refer to the press release mentioned above for details of the borrowing for which theEstablishment of Interest Rate Swap was performed.
1.

Reason for establishment
The interest rate swap has been established in order to fix interest rate payments and hedge interest rate
fluctuation risk pertaining to the borrowings under an individual term loan agreement concluded onOctober 16, 2020, as described in “2. Details of the established swap” below.

2. Details of the established swap
(1) Borrowing for which an interest rate swap agreement was concluded
TermLender

Borrowing

Interest

Date ofamountrateborrowing(2)

Corporation(Note 1)

and Mizuho

Baseinterestrate(Japanese Yen 3M
TIBOR）

Bank, Ltd. as+0.60%

Sumitomo
Mitsui
Banking

Date

3,600
million yen

loan agreement

Repayment
methodSecurity

Lump sum

dated October 16,
October 20,
2020

2020 based on thebasic agreement
dated July 29, 2020
between Sumitomo
Mitsui Banking

arrangers

repayment
October 31,

on the2025

principal

UnsecuredandUnguaranteed

repayment
dateCorporation as(Note 2)

(Note 1)

Repayment

the individual term

lenders withlong-term

Borrowing method

Borrowing based on

A syndicate ofborrowing

Principalagent.

Long-term borrowings refers to borrowings where the period up to the repayment date is one year or more. The
same applies hereinafter for long-term borrowings.

(Note 2)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited and Aozora Bank, Ltd.

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(2) Details of interest rate swap agreement
Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
3,600 million yen
Interest rate (Note)
Fixed interest rate payable: 0.08500%
Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement date
October 20, 2020
Termination date
October 31, 2025
Interest payment dates
The first interest payment date will be November 30, 2020, and subsequent interest
payment dates will be every 3 months at the end of the month.
(Note) The interest rate for long-term borrowings will be effectively fixed at 0.68500% with the conclusion of theEstablishment of Interest Rate Swap.
3.

Future outlook
The impact of the Refinancing on the operating results is insignificant, and the impact on the forecast ofoperating results for the fiscal period ending January 31, 2021 (August 1, 2020 to January 31, 2021) and thefiscal period ending July 31, 2021 (February 1, 2021 to July 31, 2021) which was announced by SAR in the“(REIT) Financial Report for Fiscal Period Ended July 31, 2020” dated September 14, 2020 is minimal, andthere are no changes to the forecast.

4.

Other matters required for investors to appropriately understand and evaluate the above information.
In conjunction with the risks pertaining to Establishment of the Interest Rate Swap, there are no changes to“Part 1. Fund Information, I. Overview of the Fund, 3. Investment Risks” stated in the securities report(Japanese only) submitted on April 28, 2020.

* Star Asia Investment Corporation website address: http://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated October 16, 2020. However, no assurance
or warranties are given for the completeness or accuracy of this English translation.

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