Star Asia Investment : Notice Concerning Establishment of Interest Rate Swap

August 17, 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: [phone]

Notice Concerning Establishment of Interest Rate Swaps

Star Asia Investment Corporation ("SAR") announces today the establishment of interest rate swap agreements (the "Establishment of Interest Rate Swap(s)") for the long-term borrowings described in the "Notice Concerning Debt Financing (Refinancing)" dated August 2, 2021, as described below.

Please refer to the press release mentioned above for details of the borrowings for which the Establishment of Interest Rate Swaps was performed.

1. Reason for establishment

The interest rate swaps have been established in order to fix interest rate payments and hedge interest rate fluctuation risks pertaining to the borrowings under an individual term loan agreement concluded on August 17, 2021, as described in "2. Details of the established swaps" below.

2. Details of the established swaps

1. Borrowings for which the interest rate swap agreements were concluded

Term		Borrowing	Interest	Date of	Borrowing	Principal	Repayment
Lenders	Repayment	Security
(Note 1)	amount	rates	borrowing	method	method
	Date
	A syndicate of		Base
	lenders with
		interest		Borrowing based
	Sumitomo Mitsui
	3,750	rate		on the individual
	Banking		August 19,
		(JPY 3M
	million yen		term loan
	Corporation and		2026
		TIBOR）		agreement dated
	Mizuho Bank, Ltd.					Lump sum
		+0.60%		August 17, 2021		Unsecure
	as arrangers				repayment
Long-term				based on the		d
(Note 2)			August 19,		on
borrowings			basic agreement		and
A syndicate of		Base	2021		principal
		dated July 29,		Unguara
	lenders with				repayment
		interest		2020 with		nteed
	Sumitomo Mitsui				date
		rate		Sumitomo Mitsui
	Banking	3,250		August 21,
	(JPY 3M
		Banking
	Corporation and	million yen		2028
	TIBOR）		Corporation as
	Mizuho Bank, Ltd.
		+0.80%		agent.
	as arrangers
	(Note 3)

(Note 1) Long-term borrowings refer to borrowings where the period up to the repayment date is one year or more. The

1

same applies below.

(Note 2) 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 3) 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.

1. Details of interest rate swap agreements

Counterparty	Sumitomo Mitsui Trust Bank, Limited
Notional principal	3,750 million yen
Interest rate (Note)	Fixed interest rate payable: 0.07795%
	Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement date	August 19, 2021
Termination date	August 19, 2026
Interest payment dates	The first interest payment date shall be September 30, 2021, and
	subsequently every 3 months at the end of the month.

(Note) The interest rate for the long-term borrowing will be effectively fixed at 0.67795% with the

conclusion of the Establishment of Interest Rate Swap.

Counterparty	Sumitomo Mitsui Trust Bank, Limited
Notional principal	3,250 million yen
Interest rate (Note)	Fixed interest rate payable: 0.08935%
	Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement date	August 19, 2021
Termination date	August 21, 2028
Interest payment dates	The first interest payment date shall be September 30, 2021, and
	subsequently every 3 months at the end of the month.

(Note) The interest rate for the long-term borrowing will be effectively fixed at 0.88935% with the conclusion of the Establishment of Interest Rate Swap.

3. Future outlook

The impact of the Establishment of the Interest Rate Swaps on SAR's operating results is insignificant, and the impact on the forecast of operating results for the fiscal period ending January 31, 2022 (August 1, 2021 to January 31, 2022) and the fiscal period ending July 31, 2022 (February 1, 2022 to July 31, 2022) which were announced by SAR in the "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 Period Ending July 31, 2022" dated August 2, 2021 is minimal, and there are no changes to the forecast. With respect to the summary financial report (kessan tanshin) for SAR's 11th Fiscal Period (February 1, 2021 to July 31, 2021), it is scheduled to be disclosed on September 14, 2021

4. 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 II. Reference Information / II. Information Supplementary to Reference Documents / 3. Investment Risks" stated in the Securities Registration Statement (Japanese only) submitted on August 2, 2021.

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

This is an English translation of the announcement in Japanese dated Augustl 17, 2021.

However, no assurance or warranties are given for the completeness or accuracy of this English translation.

2