June 20, 2017
For Immediate Release
Real Estate Investment Trust Securities Issuer
Star Asia Investment Corporation
Representative: Atsushi Kato, Executive Director(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 Establishment of Interest Rate Swaps
Star Asia Investment Corporation (SAR) announces today the establishment of interest rate swaps (the“Establishment of Interest Rate Swaps”) concerning long-term borrowings among borrowings described in“Notice Concerning Debt Financing” dated March 30, 2017 as well as long-term borrowings described in “NoticeConcerning Debt Financing and Repayment of Borrowings” dated April 20, 2017, as described below. Moreover,please refer to the respective press release mentioned above for the details of borrowings which theEstablishment of Interest Rate Swaps was made for.
1. Reason for establishment
SAR intends to fix interest rate payments and hedge the risk of interest rate fluctuation pertaining to theborrowings under individual term loan agreements concluded on April 4, 2017 as described in “2. Details of theestablished swaps” below.
2. Details of the established swaps<Borrowings which interest rate swap agreements were concluded for>BorrowingTermamountInterest
Date of
Borrowing
Lender(Note 1)(millionrateborrowing
methodyen)
Long-term
Borrowing(1)Long-term
Borrowing(2)
Long-term
Borrowing(3)Long-term
Borrowing(4)(Note 1)
(Note 2)

A syndicate oflenders with
Sumitomo
Mitsui Banking
Corporationand Mizuho
Bank, Ltd. asarrangers(Note 2)

2,400

Base
interest
rate +
0.45%

4,150

Base
interest
rate +
0.60%April 6,
2017

Borrowingbased onindividual
term loan
agreement
dated April 4,2017 basedon basic
agreement
dated April
15, 2016
assuming
SumitomoMitsuiBankingCorporation
as agent

Maturity
date

Repayment
methodSecurity

Lump sum
repayment
on maturity
date

Unsecured
andunguaranteed

October
20, 2020

April 20,
2022

Base
interest
October
1,000
rate +20, 2020
0.45%
April 20,
2017
Base
OctoberMizuho Bank,
interest
600
Ltd.
rate
20, 2020+0.45%
Long-term refers to borrowings due after one year.
The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited, Aozora Bank, Ltd., Shinsei Bank, Limited, and Resona Bank, Limited.

SumitomoMitsui BankingCorporation1

(1) Interest rate swap agreement in connection with Long-term Borrowing (1)Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
2,400 million yen
Interest rate
Fixed interest rate payable: 0.08 %Floating interest rate receivable: JBA 1 month yen TIBOR
Commencement dateJune 20, 2017
Termination date
October 20, 2020
Interest payment dates
The first interest payment will be July 20, 2017, and subsequent interest payments
will be the 20th of every month.
(Note 1) The interest rate for Long-term Borrowing (1) will be effectively fixed at 0.53% with the conclusion ofthis interest rate swap agreement in connection with the Long-term Borrowing (1).
(2) Interest rate swap agreement in connection with Long-term Borrowing (2)Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
4,150 million yen
Interest rate
Fixed interest rate payable:0.11 %Floating interest rate receivable: JBA 1 month yen TIBOR
Commencement dateJune 20, 2017
Termination dateApril 20, 2022
Interest payment dates
The first interest payment will be July 20, 2017, and subsequent interest payments
will be the 20th of every month.
(Note 2) The interest rate for Long-term Borrowing (2) will be effectively fixed at 0.71% with the conclusion ofthis interest rate swap agreement in connection with the Long-term Borrowing (2).
(3) Interest rate swap agreement in connection with Long-term Borrowing (3)Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
1,000 million yen
Interest rate
Fixed interest rate payable: 0.08 %Floating interest rate receivable: JBA 1 month yen TIBOR
Commencement dateJune 20, 2017
Termination date
October 20, 2020
Interest payment dates
The first interest payment will be July 20, 2017, and subsequent interest payments
will be the 20th of every month.
(Note 3) The interest rate for Long-term Borrowing (3) will be effectively fixed at 0.53% with the conclusion ofthis interest rate swap agreement in connection with the Long-term Borrowing (3).
(4) Interest rate swap agreement in connection with Long-term Borrowing (4)Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
600 million yen
Interest rate
Fixed interest rate payable: 0.08 %Floating interest rate receivable: JBA 1 month yen TIBOR
Commencement dateJune 20, 2017
Termination date
October 20, 2020
Interest payment dates
The first interest payment will be July 20, 2017, and subsequent interest payments
will be the 20th of every month.
(Note 3) The interest rate for Long-term Borrowing (4) will be effectively fixed at 0.53% with the conclusion ofthis interest rate swap agreement in connection with the Long-term Borrowing (4).
3. Other Matters Required for Investors to Appropriately Understand and Evaluate the Above Information
In conjunction with the risks pertaining to the Establishment of Interest Rate Swaps, there are no changes to“Part 1. Fund Information, I. Overview of the Fund, 3. Investment Risks” stated in the Securities Report submittedon April 27, 2017.

2

* Star Asia Investment Corporation website address: http://starasia-reit.com/en/3