January 30, 2020
For Translation Purpose Only
To All Concerned Parties
REIT Securities Issuer
Sakura Sogo REIT Investment Corporation
3-8-11 Kudan Minami, Chiyoda-ku, Tokyo
Representative: Toru Sugihara, Executive Director(Securities Code 3473)
Asset Management Company:
Sakura Real Estate Funds Management, Inc.
Representative: Robert Shoji Morikuni,
Representative Director andPresident
Contact:
Mayumi Kobiki,
Chief Financial Officer
Tel:+81-3-6272-6608
Notice Concerning Execution of Memorandum of Understanding and
Measures to Ensure Fairness Regarding Merger with Star Asia Investment Corporation
Sakura Sogo REIT Investment Corporation (“Sakura”) announces as follows that it resolved
at its board of directors meeting held today to execute a memorandum of understanding (the“MOU”) with Star Asia Investment Corporation (“Star Asia REIT”; together with Sakura, the“Investment Corporations”) on the merger of the Investment Corporations (the “Merger”) andhas executed the MOU with Star Asia REIT as of today’s date. In order to ensure the fairness
and transparency of the Merger, Sakura decided at its board of directors meeting held on
December 19, 2019 to establish a special committee, and the execution of the MOU has been
discussed by the special committee.
1.

Purpose of the MOU(1)Background of the MOU

On May 10, 2019, Sakura received a proposal toward the Merger (the “Star Asia Group
Proposal”) from Lion Partners G.K. (“Lion Partners”), which belongs to Star Asia REIT’s
sponsor group, the Star Asia Group, and is a minority unitholder of Sakura, and pursuant thereto,unitholder proposals (the “Unitholder Proposals”) were approved at the extraordinary
unitholders’ meeting of Sakura convened by Lion Partners on August 30, 2019 pursuant to the
Act on Investment Trusts and Investment Corporations (the “Extraordinary Unitholders’Meeting”) electing Toru Sugihara as executive director, terminating the asset managementagreement with Sakura Real Estate Funds Management, Inc. (“SREFM”), and executing a new
asset management agreement with Star Asia Investment Management Co., Ltd. (“SAIM”). (Asannounced separately, in regard to the approved Unitholder Proposals, Galaxy JREIT Pty
Limited, a unitholder of Sakura, filed an action for rescission of unitholders’ meeting
resolutions, a petition for an order of injunction to suspend performance of duties and to appointan acting representative, and a petition for an order of injunction to suspend the effect andenforcement of unitholders’ meeting resolutions, each of which is still pending.)

As the Unitholder Proposals, which were put forward for the purpose of promoting
discussion regarding the Merger, were approved at the Extraordinary Unitholders’ Meeting,
Sakura began considering the Merger. As set out in “(3) (i) Establishment of and Considerationby the Special Committee” below, considering that the inherent risk of conflicts of interest in
the Merger cannot be denied, for the purpose of ensuring the fairness of decisions when
considering the merits of conducting the Merger and the terms and conditions thereof, Sakura
established a special committee composed of Mr. Shigeru Kaneda and Mr. Hirotaka Isoyama,
who are supervisory directors of Sakura independent from the Star Asia Group and the Merger,
and Mr. Kiyoshi Kondaibo, who is a third party, at the board of directors meeting of Sakura
held on December 19, 2019 and tasked the special committee to consider the merits ofconducting the Merger and give an opinion to the board of directors of Sakura. (In regard to
the status of consideration by the special committee and other matters, see “(3) (i) Establishmentof and Consideration by the Special Committee” below.) Additionally, the special committee
approved the appointment of Mizuho Securities Co., Ltd. (“Mizuho Securities”) as financial
advisor to Sakura for the Merger and Mori Hamada & Matsumoto as legal advisor to Sakura
for the Merger, and the special committee is considering the Merger with advice from theseadvisors. For a summary of other measures to ensure the fairness of the terms and conditionsof the Merger taken by Sakura in considering the Merger (the “Measures to Ensure Fairness”),
please see “(3) Measures to Ensure Fairness” below.
Following that, while continuing with its consideration of the Merger and its discussions
with Star Asia REIT, as set out in “(2) Significance of Merger” below, Sakura reached thedetermination that based on its understanding of its current circumstances, by conducting theMerger with Star Asia REIT, an increase in its asset value can be expected, and the Merger
could lead to maximizing Sakura’s unitholder value through, in addition to the increase in asset
value, such means as further diversifying its portfolio in terms of both area and asset type,securing a pipeline of real estate from the Star Asia Group, strengthening unitholder returns byimproving and stabilizing profits and distributions through operating cost reductions, andachieving continual growth through acquisition of new real estate made possible by the increasein asset value; accordingly, on January 30, 2020, Sakura received an opinion from the special
committee that it is reasonable to execute the MOU and engage in consideration, negotiations,and due diligence to work towards a definitive agreement. Additionally, taking into accountthe progress of the pending legal actions stated above, the board of directors meeting of Sakura
held today resolved to execute the MOU with Star Asia REIT, and Sakura executed the MOU
as of today’s date.
Moving forward, while obtaining opinions and the like from the special committee, Sakura
intends to conduct due diligence on Star Asia REIT and engage in discussions and negotiations
with Star Asia REIT concerning the terms and conditions of the Merger, including the merger
ratio.
(2)

Significance of Merger

Understanding of Current Circumstances of Sakura
Sakura was listed on the REIT securities market of the Tokyo Stock Exchange in September
2016 with an asset value of JPY 57.3 billion (based on acquisition price) but has subsequently
been unable to achieve growth through the acquisition of new real estate in accordance with theinitial plan, and its asset value at the end of June 2019 was JPY 57.5 billion, nearly unchanged
from its listing. Excluding special factors such as fixed asset taxes, city planning taxes, and thelike, distributions per unit have failed to increase since the second fiscal year following listing.
As set out above, based on an awareness of issues such as relatively poor growth potential andstability in distributions caused by a latent lack of potential for growth by acquisition of new
real estate due to a lack of real estate pipelines, Sakura was reconsidering growth strategies that
include the possibility of a prospective merger.
Amid those circumstances, Sakura received the Star Asia Group Proposal on May 10, 2019
and approached multiple investment corporations, domestic and foreign funds, and otherentities except for the Star Asia Group regarding the possibility of collaboration, including
mergers, and other proposals, following which Sakura ultimately executed a merger agreementwith MIRAI Corporation, which was determined to be best in terms of contributing tomaximizing unitholder value. However, as the Unitholder Proposals were approved at theExtraordinary Unitholders’ Meeting held on August 30, 2019 while the merger agreement withMIRAI Corporation was not approved at the unitholders’ meeting convened by Sakura and heldon the same date, Sakura has continued considering the Merger and engaging in discussions
with Star Asia REIT up to the present.
Main Synergies Expected from Merger
Sakura expects an increase in its asset value through the Merger and has executed the MOU
with the intention of increasing its unitholder value through, in addition to the increase in asset
value, such means as further diversifying its portfolio in terms of both area and asset type,securing a pipeline of real estate from the Star Asia Group, strengthening unitholder returns byimproving and stabilizing profits and distributions through operating cost reductions, andachieving continual growth through acquisition of new real estate made possible by the increasein asset value. Sakura is aware of the issues stated in “Understanding of Current Circumstancesof Sakura” above but believes that by achieving synergy through the Merger, those issues canbe resolved, which it expects will contribute to the mid- to long-term growth of unitholder value.
Main Synergies Expected from Merger• Further diversification in terms of both area and asset type through increase in asset value;
increased stability of portfolio profits (comprehensive portfolio diversified and comprisedof primarily offices, more than two-thirds of which will be located in the greater Tokyo
area, as well as residential and logistic properties)• Streamlining operating costs (reducing real estate management costs and interest costs)• Improving total market value and liquidity (improve market presence through increased
asset value and liquidity as a result of merger)
Governance Systems for Maximizing Unitholder Interests
At the Extraordinary Unitholders’ Meeting, Sakura resolved to terminate the asset
management agreement with SREFM, its current asset management company, and execute an
asset management agreement with SAIM, which is to be its new asset management company.
Pursuant to that, it is intended that the asset management agreement with SREFM will beterminated on February 29, 2020 and that SAIM will take over the asset management agreementfrom March 1, 2020. SAIM has entered into an asset management agreement with Star Asia
REIT, the counterparty to the MOU, and there is overlap in the investment criteria of Sakura
and Star Asia REIT; therefore, until the Merger is conducted, it is possible that conflicts ofinterest could occur in the managing of assets, but Sakura will engage in discussions with SAIM
to ensure that Sakura’s unitholder value is not harmed by SAIM developing rigorous systems
to prevent conflicts of interest.

(3)Measures to Ensure Fairness(i)

Establishment of and Consideration by the Special Committee

Executive Director Toru Sugihara, who was elected through the Unitholder Proposals, wasa director of Star Asia REIT’s asset management company SAIM before the submission of theUnitholder Proposals, was a representative member of Lion Partners, which submitted theUnitholder Proposals, even after their submission, and is an employee of the Tokyo Brach ofStar Asia Management Japan Ltd., which is a subsidiary of Star Asia Management Ltd., which
in turn has executed a sponsor support agreement with Star Asia REIT and SAIM, so despite
the fact that, at present, Mr. Sugihara has already resigned as a director of SAIM and as arepresentative member of Lion Partners and is not engaged in any duties other than those as
executive director of Sakura, it still cannot be denied that his decision-making might beconsidered influenced by the Star Asia Group. Also there is an inherent risk of conflicts ofinterest stemming from the plan to change Sakura’s asset management company as of March 1,
2020 to SAIM, which is the same asset management company used by Star Asia REIT.
Considering these, at a meeting of Sakura’s board of directors held on December 19, 2019,
Sakura established, for the purpose of ensuring the fairness of decisions when considering
whether to conduct the Merger and the terms and conditions thereof, a special committee tasked
with considering whether to conduct the Merger and with giving an opinion to Sakura’s boardof directors.
Mr. Shigeru Kaneda and Mr. Hirotaka Isoyama, who have been supervisory directors of
Sakura from before the submission of the Unitholder Proposals and possess independence fromthe Star Asia Group and the outcome of the Merger, and Mr. Kiyoshi Kondaibo, who is a third
party, possesses independence from the Star Asia Group and the outcome of Merger, andpossesses abundant knowledge regarding J-REITs, were appointed as members of the special
committee. A brief history of Mr. Kondaibo’s career and the principal reasons for his
appointment are as described below.
Business career
April 1988

The Mitsubishi Bank, Ltd. (nowMUFG Bank, Ltd.)

December 1993

Mitsubishi Finance (Hong Kong)
LimitedAugust 1995

Singapore Branch of The
Mitsubishi Bank, Ltd. (nowMUFG Bank, Ltd.)

February 2000

Securitization Group, Financial
Instruments Development
Division, The Bank of TokyoMitsubishi, Ltd. (now MUFG
Bank, Ltd.)

July 2003

REIT Promotion Dept.,
Mitsubishi Securities Co., Ltd.
(now Mitsubishi UFJ Morgan
Stanley Securities Co., Ltd.)Principal reasons for appointment∙ Holds no vested interest in the Star
Asia Group∙ Holds 50 investment units in
Sakura, but his interests are
consistent with those of a generalunitholder, so it can be determinedthat he possesses independence
from the outcome of the Merger∙ He has worked at a Japanesefinancial institution and a foreign
investment bank, has been involvedin multiple M&A and REIT
dealings, and has excellent
knowledge of finance matters∙ He has served as an executive at an
asset management company for a
Japanese investment corporation

August 2005

Manager, Director Real Estate
Investment Bank Group, Deutsche
Securities Inc.

February 2008

Manager, Managing Director Real
Estate Investment Bank Group,
Deutsche Securities Inc.

December 2013

Vice President and Director,
Finance & Planning Division
Manager, Sojitz REIT Advisors
K.K. (retired in June 2017)and has excellent knowledge of
REIT operations

With respect to treatment of the special committee’s determinations, Sakura’s board of
directors resolved at a meeting concerning the establishment of the special committee (i) torespect the contents of the special committee’s determinations to the utmost degree in making
decisions regarding the Merger, including whether to agree to the Merger, as the board of
directors and (ii) not to proceed with the Merger if the special committee determined that
implementation of the Merger or any term or condition of the Merger transaction was
inappropriate; in addition, the board of directors has granted authority to the special committee
in relation to the following matters, among other matters: (a) the authority to negotiate with Star
Asia REIT in relation to the Merger; (b) the authority to appoint advisors on financial matters,
legal matters, and the like for its own or to nominate or approve advisors on financial matters,
legal matters, and the like for Sakura; and (c) the authority to receive from Sakura’s board of
directors information required to deliberate and make determinations regarding the Merger. It
has been decided to pay remuneration in accordance with hours worked as consideration for the
execution of duties by the members of the special committee, regardless of the contents of theirreports.
The special committee has held five meetings from December 19, 2019 to date and has also
held multiple discussions regarding the Merger by emails and other means as required.
Specifically, as stated in “(1) Background of the MOU” above, the special committee approved
the appointment of Mizuho Securities as financial advisor to Sakura for the Merger and Mori
Hamada & Matsumoto as legal advisor to Sakura for the Merger and has considered andapproved, with advice from Mori Hamada & Matsumoto, the contents of the Measures to
Ensure Fairness that should be implemented in considering the Merger. Further, whileobtaining advice from Mizuho Securities, the special committee has carefully and repeatedly
confirmed and discussed the circumstances leading to consideration of the Merger, conditions
and issues faced by Sakura, the contents of the merger proposal from Star Asia REIT, thesignificance and necessity of conducting the Merger with Star Asia REIT, the feasibility andanticipated outcomes of options other than the Merger, expected effects on the investment
corporation and unitholders as a result of the Merger, and other related matters. The special
committee has also inquired with multiple investment corporations, through Mizuho Securities,
matters including those pertaining to whether those corporations might consider a merger with
Sakura, while keeping in mind the feasibility of conducting such a merger that would benefit
Sakura. In the process of this deliberation, the special committee has received from Mizuho
Securities the provision of provisional materials and advice in relation to the Merger transaction
terms and conditions. The special committee has also offered its opinion on the contents of the
MOU, provided Mizuho Securities with instructions regarding the policy for negotiations withStar ASIA REIT, and confirmed the contents of this press release.

Further, the special committee submitted to Sakura’s board of directors an opinion, dated
January 30, 2020, to the effect that, as it is acknowledged that there is a reasonable possibility
that the Merger will lead to an improvement in Sakura’s value and the interests of Sakura’s
unitholders, it is reasonable to enter into the MOU and engage in consideration, negotiations,and due diligence to work towards a definitive agreement. Going forward, the special
committee plans to negotiate with Star Asia REIT in relation to the terms and conditions of the
Merger and other matters and, in compliance with the matters it has been tasked, report to
Sakura’s board of directors regarding the merits of the Merger.
(ii)

Non-involvement in decision-making related to the Merger by persons with vested
interests

As stated in “(3) (i) Establishment of and Consideration by the Special Committee,” it isundeniable that Executive Director Toru Sugihara’s decision-making might be considered
influenced by the Star Asia Group, so he has not participated in deliberations and resolutions
by Sakura’s board of directors in relation to execution of the MOU. As Sakura’s only executive
director, Mr. Sugihara has provided necessary explanations and information to the special
committee and conducted various administrative tasks to facilitate consideration of the Merger;
however, he has not participated in any actual decision-making by the special committee in
relation to the Merger.
(iii) Preferential negotiation obligation
Each of Sakura and Star Asia REIT has agreed under the MOU not to conduct solicitation
with respect to, or negotiate with, any third party other than each other with the aim of realizing
a merger or the like that conflicts with the Merger (which includes not allowing any third party(including, but not limited to, its own asset management company) to commit any such action).
However, if a counteroffer is made to Sakura by any third party other Star Asia REIT, Sakura
will not be precluded from conducting consultations, negotiations, and the like in relation tothat counteroffer to the extent judged reasonably necessary by the special committee, unlessthat counteroffer is the result of Sakura actively making new contact with a third party after the
execution of the MOU. If Sakura determines that execution of a transaction related to a third
party’s counteroffer is in the interests of Sakura’s unitholders, Sakura must consult with Star
Asia REIT before any legally binding agreement is made.
In this way, the fairness of procedures related to the Merger has been taken into account by
ensuring that opportunities for third parties to make counteroffers, and the consideration of suchcounteroffers, are not precluded.
2.

Summary of Merger(1)

Schedule of Merger

Sakura and STAR ASIA REIT will proceed with necessary procedures such as due diligence
and aim to conclude the merger agreement early.
(2)

Method for Merger

The method of the Merger will be determined upon subsequent discussion between Sakura
and Star Asia REIT.

(3)Allocation of Units upon Merger

Sakura and Star Asia REIT will determine the merger ratio for the Merger upon discussion
in good faith based on the results of due diligence and third party assessment.
(4)

Effective Period of MOU

The effective term of the MOU is from the date of signing the MOU to the earlier of: (i) May
31, 2020; or (ii) approval of the merger agreement by the general meeting of unitholders of both
Sakura and Star Asia REIT following execution of the merger agreement. However, the term
may be extended with the written agreement of Sakura and Star Asia REIT.
3.

Outline of Merging Parties
(1)

Name

(2)

Location(3)

Name of
Executive
Director
Unitholders’CapitalDate of
Incorporation
Total Numberof Outstanding
Investment
Units (Note 1)
Fiscal PeriodEnds
Main Assets
underManagement

SakuraSakura Sogo REIT Investment
Corporation
3-8-11, Kudan Minami,
Chiyoda-ku, Tokyo

Star Asia REIT
Star Asia Investment
Corporation
Atago Green Hills Mori Tower
18F,
2-5-1, Atago, Minato-ku,
Tokyo

Toru Sugihara

Atsushi Kato

29,254 million yen

52,745 million yen

April 1, 2016

December 1, 2015

333,001 units

540,824 units

June and December

January and July

Real estate and real estate
beneficiary interests in trust

Real estate and real estate
beneficiary interests in trust(9)

Total Numberof Assets(Note 1)

Office buildings
RetailResidence
Others(10)Book Value at
End of Fiscal
Period (Note1)

Office buildings 26,544 million
yen
Retail22,214 million yen
Residence
6,583 million yen
Others2,378 million yen

Office buildings
11
Residence
7
Logistics facility
8
Hotel
8
Office buildings: 36,068 million
yen
Residence 15,571 million yen
Logistics facility 30,877 million
yen
Hotel
20,634 million yen

(4)
(5)
(6)
(7)
(8)

8
4
4
2

(11)

(12)

(13)

Main
Financial
Banks

Large
Unitholders
and Holding
Ratio(Note 1)

Sumitomo Mitsui Banking
Corporation, and seven otherbanks
The Master Trust
Bank of Japan, Ltd.
7.6%
(Trust account)
Japan Trustee
Services Bank, Ltd.
6.2%
(Trust account)
Lion Partners Godo
3.6%
KaishaThe Nomura Trustand Banking Co.,
3.1%
Ltd. (Investment
trust account)
BNY GCMCLIENT
3.0%
ACCOUNT JPRD
AC ISG (FE-AC)

Sumitomo Mitsui Banking
Corporation, Mizuho Bank,
Ltd., and nine other banks
The Master Trust
Bank of Japan, Ltd.
9.2%
(Trust account)
Japan Trustee
Services Bank, Ltd.
7.1%
(Trust account)
STAR ASIA
4.5%
CAPITAL I LLC
STAR ASIA
CAPITAL II LLC

4.5%

STAR ASIA
CAPITAL III LLC

4.5%

STAR ASIA
CAPITAL IV LLC

4.5%

Business Results for Last 3 Fiscal Periods(in units of million yen unless otherwise specified; figures rounded down to the nearest
unit)
SakuraStar Asia REIT
Fiscal Period Ended:
Jun.
Dec.
Jun.
Jan.
Jul. 2018
Jul. 2019
2018
2018
2019
2019
Operating Revenue
1,768
2,362
2,394
2,810
3,844
3,785
Operating Profit
854
1,046
1,037
1,576
2,406
2,225
Ordinary Profit
615
885
874
1,305
2,073
1,965
Net Profit
615
886
885
1,305
2,049
1,964
Net Profit per Unit
1,847
2,661
2,660
2,775
3,889
3,632
(yen)
Distributions per Unit
1,848
2,662
2,660
2,773
3,720
3,625
(yen)
Net Assets per Unit
89,70090,51390,512 100,477 101,400 101,215(yen)
Net Assets
29,87030,14130,14047,287
54,83954,739Total Assets
62,752
61,64363,38993,553 111,079 110,240
Name of Asset Sakura Real Estate Funds
Star Asia Investment(14) Management
Management, Inc.
Management Co., Ltd.
Company(Note 2)
(Note 2)
Location of
Atago Green Hills Mori Tower
Asset
3-8-11, Kudan Minami,
18F,
(15)
Management
Chiyoda-ku, Tokyo
2-5-1, Atago, Minato-ku,
Company
Tokyo

(16)

(17)

Name and Title
of
Robert Shoji Morikuni,
Representative
Atsushi Kato, President andRepresentative Director andof AssetCEO
President
Management
Company
Relationship between Parties Involved
While there is no capital relationship required to be disclosed
between Sakura and Star Asia REIT, the asset management
CapitalRelationshipcompany for both Sakura and Star Asia REIT is expected to be(Note 2)
Star Asia Investment Management Co., Ltd., on and after March
1.
While there is no personnel relationship required to be disclosed
between Sakura and Star Asia REIT, it should be noted that Toru
Sugihara, Executive Director of Sakura, is an employee of the
Personnel
Tokyo Branch of Star Asia Management Japan Ltd., a subsidiary
Relationshipof Star Asia Management Ltd., with which Star Asia REIT and(Note 2)
Star Asia Investment Management Co., Ltd., Star Asia REIT’s
asset management company, have each executed a sponsor
support agreement.
There is no business relationship required to be disclosed between:
Business(a) Sakura and its asset management company, and their related
Relationshippersons and affiliates; and (b) Star Asia REIT and its asset(Note 2)
management company, and their related persons and affiliates.
Sakura and Star Asia REIT do not fall under related parties that
Status as
are required to be disclosed. However, the asset management
Related Party
company for both Sakura and Star Asia REIT is expected to be(Note 2)
Star Asia Investment Management Co., Ltd., on and after March
1.

(Note 1) The relevant figures are as of June 30, 2019 for Sakura, and as of July 31, 2019 for Star Asia
REIT. The “holding ratio” is rounded to the nearest tenth.
(Note 2) As stated in its “Announcement Concerning Notice of Termination of Asset Management
Agreement” dated September 5, 2019, Sakura notified its cancellation of the asset management
entrustment agreement with Sakura Real Estate Funds Management, Inc. on August 30, 2019.
Sakura plans to sign a new asset management entrustment agreement with Star Asia Investment
Management Co., Ltd., and the asset management entrustment agreement with SREFM isscheduled to be cancelled as of February 29, 2020. In response, SREFM has filed a petition
against Sakura for preliminary order to provisionally grant SREFM the contractual status with
contractual rights under the asset management entrustment agreement from March 1, 2020 until
final judgement of the “Action for Rescission of Resolution of Unitholders’ Meeting”(hereinafter referred to as the “SREFM Petition”). Sakura has stated in its press release that it
believes the SREFM Petition lacks reasonable grounds.

4.

Post-Merger Status(1)

Status of Surviving Corporation
(1)

Name

(2)

Location

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

Net Assets(7)

Total Assets

(8)

(9)

(10)

(2)

Name of
Executive
Director
Unitholders’CapitalFiscal PeriodEnds

Name of AssetManagement
Company
Location of
Asset
Management
Company
Name and Title
ofRepresentativeof Asset
Management
Company

Surviving Corporation after Merger
Star Asia Investment Corporation
Atago Green Hills Mori Tower 18F, 2-5-1, Atago,
Minato-ku, Tokyo
Atsushi Kato
Not yet been determined, and will be announced once
determined.
Not yet been determined, and will be announced once
determined.
Not yet been determined, and will be announced once
determined.
Not yet been determined, and will be announced once
determined.
Star Asia Investment Management Co., Ltd.
Not yet been determined, and will be announced once
determined.

Not yet been determined, and will be announced once
determined.

Major Unitholders and Unit Holding Ratio before and after Merger
Not yet been determined, and will be announced once determined.

(3)

Amendment to Asset Management Agreement

As stated in its “Announcement Concerning Notice of Termination of Asset Management
Agreement” dated September 5, 2019, Sakura notified its cancellation of the asset management
entrustment agreement with SREFM on August 30, 2019. Sakura plans to sign a new asset
management entrustment agreement with SAIM. Therefore, SAIM will continue to provide
asset management services to the merged investment corporation following the Merger. Further,while SREFM filed the SREFM Petition, Sakura stated in its press release that it believes the
SREFM Petition lacks reasonable grounds.
(4)

Amendment to Investment Policy
Not yet been determined, and will be announced once determined.

(5)Amendment to Agreement with Sponsor, etc.
Not yet been determined, and will be announced once determined.

5.

Influence on Distributions per Unit
Not yet been determined, and will be announced once determined.

6.

Outlook

The outlook going forward is not yet determined at this time. We will make an announcement
when specific progress is made. The impact of the execution of the MOU on Star Asia REIT’s
business results in the fiscal period ending June 2020 (from January 1, 2020 to June 30, 2020)
is minor and there is no change to the forecast.
(End)*This material has been distributed to the Kabuto Club (the press club of the Tokyo Stock
Exchange), the press club of the Ministry of Land, Infrastructure, Transport and Tourism, andthe press club of specialty construction newspapers at the Ministry of Land, Infrastructure,
Transport and Tourism.
*Sakura URL: http://sakurasogoreit.com/en