Star Asia Investment: Mezzanine Loan Debt Repayment Notice (Series 5 / Class B Profitable Interest)
December 27, 2021
For immediate release
Real estate investment trust issuer
Star Asia Investment Company
Representative: Atsushi Kato, Executive Director
Asset management company
Star Asia Investment Management Co., Ltd.
Representative: Atsushi Kato
President and CEO
Contact: Akiko Kanno
Director and Chief Financial Officer
PHONE: + 81-3-5425-1340
Notice concerning the repayment of the debt of the mezzanine loan (series 5 / interest of the beneficiaries of category B)
As stated in the March 2, 2020 press release entitled “Notice Regarding the Acquisition of Star Asia Mezzanine Loan Debt Investment Series 5 (B Beneficiary Interest)”, Star Asia Investment Corporation (“SAR”) has held in investment subordinated beneficial interest securities (the “beneficial interest of category B”) linked to the trust established on a loan receivable (non-recourse loan) advanced to a Godo Kaisha (the “GK”) secured by a beneficial interest in trust whose main entrusted asset was Sanmaison Ohorikoenkita (this beneficial interest in the trust hereinafter referred to as “the collateral asset”). However, as the GK recently sold the asset as collateral to a third party, the loan receivable that was the underlying trust asset of the relevant subordinated beneficial interest was fully repaid, and the interest accrued on the loan to underlying receivable have been paid in full, and as a result, today, the total principal amount of subordinated beneficial interest held by SAR has been fully repaid, and SAR has also received the corresponding accrued interest payment. Details are described below.
In view of this early repayment, out of the 6 mezzanine debt investments made by SAR to date, three of them have been repaid.
1. Overview of Category B Beneficial Interest
Category B beneficial interest is the subordinated beneficial interest related to the trust established on a
loan receivable owed to GK, where the collateral asset is a fiduciary beneficial interest with Sanmaison Ohorikoenkita as the main entrusted asset. SAR acquired the Category B beneficial interest on March 6, 2020 for JPY
1.5 million, and continued to hold it, based on the judgment that the certainty of principal repayment was high, and also because the investment would lead to diversification of investments and yield dividend income through the use efficiency of own capital, and as it was expected that the investment would increase distributable income.
Assets as collateral
(beneficial class B
150 million yen
1,140 million yen
(beneficial class C
investment, etc …
(Note 1) The appraised value as of February 1, 2020 is indicated.
(Note 2) Class B Interest of the beneficiary was acquired on March 6, 2020.
For further details regarding the Class B Beneficiary Interest described above, please refer to the “Notice Regarding the Acquisition of Star Asia Mezzanine Loan Debt Investment Series 5 (Beneficiary B Interest) Announced on March 2, 2020.
- Redemption of Class B Profitable Interest
In view of the sale of the collateral asset by the GK, the underlying loan receivable which was the subordinated beneficial interest trust asset was fully repaid with the full amount of accrued interest and, in return, the full principal amount of the subordinated beneficial interest has also been fully repaid and the full amount of accrued interest has been collected.
- Future prospects
Since the impact of the buyback of the interest of category B beneficiaries on the forecast of operating results for the years ending in January 2022 (August 1, 2021 to January 31, 2022) and July 2022 (February 1, 2022 to July 31 2022) announced in the “Financial Report for the Year Ended July 31, 2021 (FPI)” dated September 14, 2021 is minimal, there are no changes to forecasts.
- Other questions required for investors to properly understand and assess the above information
In conjunction with the risks associated with reimbursement of interest from the Class B beneficiary, etc., there are no changes to “Part 1. Fund Information, I. Fund Facts, 3. Risks investment ”stated in the Securities Report (in Japanese only) submitted on October 26, 2021.
SAR will continue to consider investments in mezzanine loans, which not only diversify investment objectives, but also increase distributable profits through efficient use of cash that enables SAR to collect dividends, as part of the active management strategy which leads to the maximization of the value of unitholders.
This is an English translation of the Japanese announcement dated December 27, 2021.
However, no assurances or guarantees are given for the completeness or accuracy of this English translation.
Star Asia Investment Company published this content on December 27, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on December 27, 2021 06:06:13 AM UTC.
Public now 2021
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