Star Asia Investment Trust repays entire Mezzanine Bond investment early

TOKYO, Apr 30 (Pulse News Wire) – Star Asia Investment Corporation (3468.T) announced today that the full amount of its Mezzanine Bond investment was redeemed through a buyout by the issuer. The bond, which backed Century Hotel Akasaka, was acquired for ¥870 million on December 26, 2024, and had been held until its early repayment.

The Mezzanine Bond was part of the Star Asia Mezzanine Loan Bond Investment Series 11, secured by Century Hotel Akasaka. It offered high principal repayment certainty along with interest income, contributing to increased distributable profits. However, due to the sale of the underlying property by the joint venture company, the bond was fully redeemed.

Looking ahead, the trust expects minimal impact on operations. The forecast for the fiscal year ending July 31, 2026, and January 31, 2027, remains unchanged as previously disclosed. In addition, the company stated that it will continue to explore opportunities for diversified investments and effective utilization of equity funds, focusing on Mezzanine Bonds that offer dividend income and potential increases in distributable profits.