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

(Ref: 3468)

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.

1

Operator: GK

GK

Curator

(Class A-

ABL lender)

Assets as collateral

(beneficial class B

[Borrowing]

[Loan]

Interest)

Sanmaison

Non-recourse loan

Non-recourse loan

150 million yen

Ohorikoenkita

DAS

1,140 million yen

(note 2)

(Expertise value)

(beneficial class C

(note 1)

Interest)

[Equity]

Silent partnership,

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.

  1. 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.
  2. 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.
  3. 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.

2

Warning

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

All the news of STAR ASIA INVESTMENT CORPORATION
Sales 2022 11 543 million
101 million
101 million
Net income 2022 5 103 million
44.6 million
44.6 million
Net debt 2022

PER 2022 ratio 21.5x
Yield 2022 4.69%
Capitalization 113B
990 million
990 million
Capi. / Sales 2022 9.81x
Capi. / Sales 2023 8.84x
Number of employees
Free float 80.1%

STAR ASIA INVESTMENT CORPORATION chart
Duration :

Period :

Star Asia Investment Corporation Technical Analysis Chart |  MarketScreener

Trends in technical analysis STAR ASIA INVESTMENT CORPORATION

Short term Mid Road Long term
Tendencies Neutral Neutral Bullish

Evolution of the income statement

Average consensus
Number of analysts 0
Last closing price

63,300.00

Average price target
Spread / Average target


Comments are closed.