August 2, 2021
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 Debt Financing
Star Asia Investment Corporation (“SAR”) announces today that it has decided to execute debt financing (the“Debt Financing”), as described below.
1.

Details of the Debt Financing (Note1)

Term(Note 2)Long-term
borrowings(Note 1)

Lenders

A syndicate oflenders with
Sumitomo Mitsui
Banking
Corporation andMizuho Bank, Ltd.
as arrangers(Note3)
A syndicate oflenders with
Sumitomo Mitsui
Banking
Corporation andMizuho Bank, Ltd.
as arrangers(Note 4)

Borrowingamount3,750
million yen

Interestrate(Note 5)(Note 6)

Date ofborrowing

Borrowing method

August 19,
2021

Borrowing basedon the individual
term loan
agreement
expected to bedated August 17,
2021 based on thebasic agreement
dated July 29,2020 with
Sumitomo Mitsui
Banking
Corporation asagent.

Baseinterestrate(JPY 3M
TIBOR）+0.60%

3,250
million yen

Baseinterest
rate(JPY 3M
TIBOR）+0.80%

Principal
RepaymentDate(Note 7)

Repayment
methodSecurity

Lump sum
repaymentonprincipal
repaymentdate(Note8)

UnsecuredandUnguaranteed

August 19,
2026

August 21,
2028

This information is based on the notice on results of consideration regarding the Debt Financing issued by thearrangers. However, it does not guarantee that the actual financing will be conducted as described above, because
the lenders should go thorough financing examination.

(Note 2)

Short-term borrowings refer to borrowings due within one year. Long-term borrowings refer to borrowings where

Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release has
been prepared for the purpose of announcing to the public certain matters relating to the decision of debt financing, andnot for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein ha ve
not been, and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 the above -mentioned transactions.
This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

1the period up to the repayment date is one year or more. The same applies hereinafter for short-term borrowings
and long-term borrowings.
(Note 3)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited., Aozora Bank, Ltd., The Bank of Yokohama,Ltd., and The Minato Bank, Ltd.

(Note 4)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited., Aozora Bank, Ltd., and The Minato Bank, Ltd.

(Note 5)

Financing fees and other charges payable to the lenders are not included.

(Note 6)

The first interest payment date is September 30, 2021, and thereafter, interest payment dates shall fall on the last
day of every 3 months and on the principal repayment date. However, if such date is a non-business day, theinterest payment date shall be the immediately following business day, or if such date falls in the next month, theinterest payment date shall be the immediately preceding business day. For borrowings with floating interest rates,
the base interest rate applicable to the calculation period for payment of interest on any given interest payment
date is the three month interest rate for Japanese Yen as announced by JBA TIBOR Administration at 11 a.m.
(Tokyo time, the same applies hereinafter) or at the point of time after 11 a.m. and as close to 11 a.m. as possible,on the date which is two business days prior to the immediately preceding interest payment date (or two businessdays before the drawdown date for the first interest payment date). However, if there is no base rate that
corresponds to an interest calculation period, the base rate will be calculated by the formula set forth in theindividual term loan agreements. For Japanese Yen TIBOR announced by the JBA TIBOR Administration which isusedasthebaseinterestrate,pleaseconfirmintheJBA

TIBOR

Administration

website(https://www.jbatibor.or.jp/english/). SAR will consider fixing interest rate payments by an arrangement such as
interest rate swaps for the Debt Financing.
(Note 7)

If the principal repayment date is a non-business day, the repayment date shall be the immediately following
business day; however, if such date falls in the next month, repayment date shall be the immediately precedingbusiness day.

(Note 8)

If certain conditions, such as advance notification in writing by SAR, are met during the period between the dateof borrowing and the principal repayment date, SAR may prepay the borrowed amounts either in whole or in partprior to maturity.

(Note 9)Certain financial covenants, such as stipulating that certain financial figures should be maintained based on assets
and liabilities, are expected to be established for the Debt Financing.

2.

Reason for the Debt Financing
To be allocated to the payment of a part of the acquisition funds and related expenses for the real estate
beneficiary interests in trust for 7 properties (total anticipated acquisition price: 12,965 million yen)described as Assets to be Acquired in the “Notice Concerning Acquisition of Real Estate BeneficiaryInterests in Trust and entering into Lease Contracts” announced today. SAR will consider fixing interest rate
payments by an arrangement such as interest rate swaps for the Debt Financing to improve stability of its
financial foundation.

3.

Total amount of funds to be procured by the Debt Financing, use of funds and schedule of expenditure(1) Amount of funds to be procured
7,000 million yen in total(2) Specific use of funds to be procured and schedule of expenditure

Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release has
been prepared for the purpose of announcing to the public certain matters relating to the decision of debt financing, andnot for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein ha ve
not been, and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 the above -mentioned transactions.
This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

2Specific use of funds
To be allocated to the payment of a part of theacquisition funds and related expenses for thereal estate beneficiary interests in trust for 7
properties (total anticipated acquisition price:12,965 million yen) described as Assets to be
Acquired as stated in Section 2 above.
4.

AmountSchedule of Expenditure

7,000 million yen

August 19, 2021

Status of Borrowings etc. after the Debt Financing

Short-term borrowings
Long-term borrowings
Total borrowings
Investment corporation bonds
Total borrowings and Investment corporation bonds
Other interest-bearing liabilities
Total interest-bearing liabilities

Before theDebt
Financing
2,150
80,29082,440(Unit: million yen)
After theDebt
ChangeFinancing
2,150－87,290
7,00089,440
7,000－
82,440－89,440－7,000－82,440－89,440－
7,0005.

Future Outlook
As a result of the Debt Financing, there will be certain changes made to the assumptions for theforecasts for operating results described in “(REIT) Financial Report for Fiscal Period Ended January 31,2021” announced on March 16, 2021. For further details, please refer to “Notice Concerning Revision toForecasts for Operating Results for the 12th Fiscal Period Ending January 31, 2022 and Forecasts forOperating Results and Distribution for the 13th Fiscal Period Ending July 31, 2022” announced today.

6.

Other matters required for investors to appropriately understand and evaluate the above information
With respect to the risks pertaining to the repayment of the Debt Financing, etc., there are no changes
to the descriptions in “Part II. Reference Information / II. Information Supplementary to Reference
Documents / 3. Investment Risks” of the Securities Registration Statement submitted today (August 2,2021).

<Reference>
Other press releases announced today
Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units
Notice Concerning Acquisition of Real Estate Beneficiary Interests in Trust and enteing into Lease
Contracts
Notice Concerning Revision to Forecasts for Operating Results for the 12th Fiscal Period Ending
January 31, 2022 and Forecasts for Operating Results and Distribution for the 13th Fiscal PeriodEnding July 31, 2022
Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release has
been prepared for the purpose of announcing to the public certain matters relating to the decision of debt financing, andnot for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein ha ve
not been, and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 the above -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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*Star Asia Investment Corporation website address: http://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated August 2, 2021. However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release has
been prepared for the purpose of announcing to the public certain matters relating to the decision of debt financing, andnot for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein ha ve
not been, and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) andmay 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 the above -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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