August 19, 2024

FOR IMMEDIATE RELEASE
Company Name: Polaris Holdings Co., Ltd.
Representative: Takahiro Tsujikawa
President & CEO
Stock Listing:Tokyo Stock Exchange, Standard Section
Stock Code: 3010

Inquiries:Takashi Handa
Director and CFO(TEL: 03-5822-3010)

Polaris Executes Lease Agreements for 4 KOKO Hotels to Enhance Profitability andRecords Gain on Distribution in the Sale of KOKO HOTEL Tsukiji Ginza
Polaris Holdings Co., Ltd. (hereinafter the “Polaris” or the “Company”) announced today that Fino Hotels Co., Ltd. (hereinafterthe “Fino Hotels”) and KOKO HOTELS Co., Ltd. (hereinafter the “KOKO HOTELS”), subsidiaries of the Company, havesuccessfully executed fixed-term building lease agreements (hereinafter the “Lease Agreements”) combining fixed and variable
rents for four properties: “KOKO HOTEL Residence Asakusa Kappabashi”, “KOKO HOTEL Residence Asakusa
Tawaramachi”, “KOKO HOTEL Tsukiji Ginza” (hereinafter the “KOKO Tsukiji Ginza”), and “KOKO HOTEL Osaka
Shinsaibashi” (hereinafter collectively the “Four Hotels”) with a new owner upon a change of ownership. These Four Hotels
had been operated based on Management Contracts sequentially since September 2021, than which new Lease Agreements
enhances the higher profitability for Polaris Group. In addition, Polaris expects to recognize approximately JPY250 million innet sales as dividend distribution from a silent partnership. This is due to the sale of KOKO Tsukiji Ginza Hotel property, held
as trust beneficiary rights by a Special Purpose Company (hereinafter ‘SPC’), in which the Company has a silent partnershipinterest.
1. Background and Purpose of executing the Lease Agreements
In order to reduce the risk associated with the hotel management during the COVID, Polaris Group has been focusing toacquire the hotel management opportunities of fee-based Management Contracts with a low-risk but low-return profile, andbased on this strategy, the Four Hotels, which opened during the COVID period, were operated based on ManagementContracts. Additionally, on April 30, 2021, when the SPC formed by Star Asia Group acquired KOKO Tsukiji Ginza Hotelproperty, the Company made a JPY204 million co-investment in the silent partnership.
Since the management contracts is to be terminated upon Star Asia Investment Corporation (Stock Code 3468; hereinafter“SAR”)'s acquisition of the four Hotel properties, Polaris Group has discussed with SAR and decided to enter into new Lease
Agreements for the Four Hotel properties and continue to operate the Four Hotels based on the long-term Lease Agreements.
Polaris expects to receive profit distribution and refund of the subject silent partnership interest in connection with the sale ofKOKO Tsukiji Ginza Hotel property.
The two “KOKO HOTEL Residence” hotels mainly target families, groups, and long-term stay customers, and are equippedwith sufficient room space for 4 to 6 guests per room, a mini-kitchen, refrigerator, washer/dryer, tableware, dining table, etc.,-1-making them suitable for long-term stays especially for families and groups, including foreign visitors to Japan. “KOKO
HOTEL Tsukiji Ginza,” and “KOKO HOTEL Osaka Shinsaibashi” are both located in close proximity to areas popular withdomestic and international tourists, and with approximately 200 guest rooms, they are ideally sized for efficient and profitable
hotel operations.
As stated in the “Medium-Term Management Plan (FY2024 - FY2026)” dated May 14, 2024, Polaris Group positions theincrease in the number of hotel properties and operating rooms and the profitability enhancement of operating hotels as thekey growth driver, and Polaris Group believes that the execution of Lease Agreements, which combines fixed and variable
rents, a more profitable middle-risk middle-return profile, as well as securing long-term operating opportunities, willcontribute to the enhancement of the Group's corporate value over the medium to long term.
2. Outline of the Lease Agreements(1) KOKO HOTEL Residence Asakusa Kappabashi① Agreement parties
SAR and Fino Hotels② Hotel Name
KOKO HOTEL Residence Asakusa Kappabashi③ Location
3-24-2, Nishiasakusa, Taito-ku, Tokyo 111-0035, Japan④ Number of Rooms
42 rooms⑤ Contract period
August 30, 2024 - August 31, 2039
・Rent:[Fixed Rent]
Monthly: JPY 6,700,000⑥ Other contract details[Variable Rent]
Actual GOP of rent calculation period (one month) x 85% － Fixed Rent
The total amount of lease payments is expected to exceed the amount equivalent to 30%of the Company's consolidated net assets for the previous fiscal year. However, since
the lease payments under this agreement are structured as a combination of fixed rent
⑦ Total lease expenses
and variable rent determined by the performance of the hotel operation, the Company isunable to reasonably predict the specific amount and as such, refrains from disclosing
the amount of the rent.
(2) KOKO HOTEL Residence Asakusa Tawaramachi① Agreement parties
SAR and Fino Hotels② Hotel Name
KOKO HOTEL Residence Asakusa Tawaramachi③ Location
2-8-12, Kotobuki, Taito-ku, Tokyo 111-0042, Japan④ Number of Rooms
47 rooms⑤ Contract period
August 30, 2024 - August 31, 2039
・Rent:[Fixed Rent]
Monthly: JPY 8,900,000⑥ Other contract details[Variable Rent]
Actual GOP of rent calculation period (one month) x 85% － Fixed Rent
The total amount of lease payments is expected to exceed the amount equivalent to 30%of the Company's consolidated net assets for the previous fiscal year. However, since
the lease payments under this agreement are structured as a combination of fixed rent
⑦ Total lease expenses
and variable rent determined by the performance of the hotel operation, the Company isunable to reasonably predict the specific amount and as such, refrains from disclosing
the amount of the rent.
(3) KOKO HOTEL Tsukiji Ginza① Agreement parties
SAR and KOKO HOTELS② Hotel Name
KOKO HOTEL Tsukiji Ginza③ Location
6-8-8, Tsukiji, Chuo-ku, Tokyo 104-0045, Japan④ Number of Rooms
188 rooms⑤ Contract period
August 30, 2024 - August 31, 2039
-2-⑥ Other contract details⑦ Total lease expenses

・Rent:[Fixed Rent]
Monthly: JPY 22,700,000[Variable Rent]
Actual GOP of rent calculation period (one month) x 85% － Fixed Rent
The total amount of lease payments is expected to exceed the amount equivalent to 30%of the Company's consolidated net assets for the previous fiscal year. However, since
the lease payments under this agreement are structured as a combination of fixed rent
and variable rent determined by the performance of the hotel operation, the Company isunable to reasonably predict the specific amount and as such, refrains from disclosing
the amount of the rent.

(4) KOKO HOTEL Osaka Shinsaibashi① Agreement parties
SAR and KOKO HOTELS② Hotel Name
KOKO HOTEL Osaka Shinsaibashi③ Location
3-3-17 Minamisenba, Chuo-ku, Osaka 542-0081, Japan④ Number of Rooms
211 rooms⑤ Contract period
August 30, 2024 - August 31, 2039
・Rent:[Fixed Rent]
Monthly: JPY 11,700,000⑥ Other contract details[Variable Rent]
Actual GOP of rent calculation period (one month) x 85% － Fixed Rent
The total amount of lease payments is expected to exceed the amount equivalent to 30%of the Company's consolidated net assets for the previous fiscal year. However, since
the lease payments under this agreement are structured as a combination of fixed rent
⑦ Total lease expenses
and variable rent determined by the performance of the hotel operation, the Company isunable to reasonably predict the specific amount and as such, refrains from disclosing
the amount of the rent.
3. Outline of Contract Partner(i) Name(ii) Location
Title and name of(iii)
representative(iv)

Business

Total amount ofinvestments (Note)(vi) Date of Establishment(vii) Net assets (Note)(viii) Total assets (Note)
Major Investors and(ix) Investment Ratio(Note)(v)

Star Asia Investment CorporationAtago Green Hills MORI Tower 18F, 2-5-1 Atago, Minato-ku, Tokyo
Atsushi Kato, Executive Officer
Real estate investment business based on the Law Concerning Investment Trusts andInvestment Corporations
JPY 89,316 million
December 1, 2015
JPY 127,127 million
JPY 259,155 million
Custody Bank of Japan, Ltd. 11.3%
Capital relationship(x)

Relationship betweenPolaris and SAR

Human relationship
Business relationship
Related Party Status(Note) Based on information as of January 31, 2024.

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There is no direct capital relationship between Polaris andSAR. SAR is an investment corporation and SAIM is theasset manager of SAR. SAIM is owned by Star Asia Group.
There is no personnel relationship between Polaris andSAR that should be noted. four members of Star Asia Group
serve as directors of the Company.
There are no business relationships requiring special
mention between Polaris and SAR.
SAR is not deemed a related party of Polaris.

4. Schedule
Date of execution of the Lease Agreements: August 30, 2024 (planned)
Commencement date of the lease based on the Lease Agreements: August 30, 2024 (planned)
5. Outlook
There will be no revision to the earnings forecast for the current fiscal year due to the execution of the Lease Agreements
and the distribution of profit related to the silent partnership interest, However, if it becomes necessary to revise the earnings
forecast, the Company will promptly announce such revision.
EndNOTE: This is an English translation summary of the Company’s announcement in Japanese. No assurances orwarranties are given for completeness or accuracy of this English translation summary.

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