Proposed Acquisition of Wisma Gulab

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Randolf Terry
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1 Proposed Acquisition of Wisma Gulab 24 September 2004

2 Agenda The Property Impact on A-REIT Pro forma Financial Effect Portfolio Diversification Property Yield Timetable for Completion Acquisition Summary

Strategic location Wisma Gulab is located at 190 MacPherson Road The Property Impact on A-REIT Timetable for Completion Acquisition Summary Located

3 Strategic location Wisma Gulab is located at 190 MacPherson Road The Property Impact on A-REIT Timetable for Completion Acquisition Summary Located at the corner of Genting Road and MacPherson Road Readily accessible via Pan Island Expressway (PIE) from city centre and Changi International Airport

4 Property Details of Wisma Gulab Building type Address Net Lettable Area Site Area Nine-storey light industrial building for office and warehousing, with a basement car park 190 MacPherson Road, Singapore ,821 sqm 5,070 sqm The Property Impact on A-REIT Timetable for Completion Acquisition Summary Valuation (as at 15 September 2004) Purchase Price Property Yield (before acquisition costs) for first year S$55.7m by Colliers International Consultancy & Valuation (Singapore) Pte Ltd S$55.7m (initial payment of S$43.5m and remaining will be paid in two further installments of S$5.0m and S$7.2m at the end of the 5 th and 7 th year respectively 7.9% (based on the initial payment of S$43.5m upon completion) 4

5 Property Details of Wisma Gulab Title Freehold property The Property Occupier Occupancy Outgoings RSH Limited 100% Lease management and insurance cost to be paid by A-REIT Impact on A-REIT Timetable for Completion Acquisition Summary All property tax, maintenance and utility expenses to be paid by RSH Limited 5

6 Agenda The Property Impact on A-REIT Pro forma Financial Effect Portfolio Diversification Property Yield Timetable for Completion Acquisition Summary

7 Distribution Per Unit ( DPU ) Positive The Property Techpoint DPU Impact (proforma annualised impact) DPU Impact* 0.13 cents Impact on A-REIT Timetable for Completion Acquisition Summary Note: *Impact on DPU assuming A-REIT s 19 properties and the Property had been acquired and held from 1 April 2003 through to 31 March 2004, and at its optimal gearing level of 30 per cent debt and 70 per cent equity 7

8 Agenda The Property Impact on A-REIT Pro forma Financial Effect Portfolio Diversification Property Yield Timetable for Completion Acquisition Summary

Well Located, Diversified Portfolio 19 13 20 16 1 2 3 41 22 21 23 10 9 24 11 8 17 7 14 15 6 18 12 5 1 Science & Business Park Hi-tech Industrial Light Industrial Logistics 1. The Alpha 2. The Aries 3.

9 Well Located, Diversified Portfolio Science & Business Park Hi-tech Industrial Light Industrial Logistics 1. The Alpha 2. The Aries 3. The Capricorn 4. The Gemini 5. Honeywell Building 6. Ultro Building 9 7. Techlink 8. Siemens Center 23. Techpoint 17. A-REIT has an option to acquire the Infineon Building 9. Techplace I 10. Techplace II 11. OSIM HQ Building 12. Ghim Li Building 19. Progen Building 22. Exklusiv Building 24. Wisma Gulab 21. A-REIT has an option to acquire the Building developed with a lease to a Fortune 500 US company 13. IDS Logistics Corporate HQ Building 14. Changi International Logistics Centre 15. Trivec Building 16. TT International Tradepark 18. Nan Wah Building 20. C&P Logistics Hub

10 A-REIT Weighted Lease Expiry Profile A-REIT Weighted Average Lease Expiry Profile (by Income) The Property Logistics Sector % of A-REIT's Gross Renta Income 25% 20% 15% 10% 5% 0% Existing Properties 20.8% 20.2% 19.5% 18.9% 13.1% 12.7% 11.7% 11.4% After Acquisition 5.9% 5.7% 5.3% 5.1% 2.2% 2.1% 6.4% 6.2% 4.8% 4.7% 2.5% 2.4% 0.8% 0.8% 7.0% 6.8% 3.0% > 2019 Impact on A-REIT Timetable for Completion Acquisition Summary For the Year Ending 31 Mar Weighted Average Lease Term to Expiry Existing Properties 5.22 yrs After Acquisition 5.52 yrs

11 Asset Class Diversification by Portfolio Value Before acquisition of Wisma Gulab After acquisition of Wisma Gulab Business Park Business Park Distribution & Logistics Centres 38% 26% 25% 11% Hi-Tech Industrial Distribution & Logistics Centres 37% 25% 24% 15% Hi-Tech Industrial Light Industrial Light Industrial 11

12 Agenda The Property Impact on A-REIT Pro forma Financial Effect Portfolio Diversification Property Yield Timetable for Completion Acquisition Summary

13 Yield-Accretive For Year One Income Wisma Gulab (S$ million) 3.48 The Property Impact on A-REIT Timetable for Completion Acquisition Summary Property Expenses 0.04 Net Income 3.44 Yield Before Acquisition Costs (for year one) 7.9% (1) (1) Based on the initial payment of S$43.5 million. The remaining S$12.2 million will be paid in two further installments of S$5.0 million and S$7.2 million, at the end of the 5 th and 7 th years of ownership, respectively. Source : Ascendas-MGM Funds Management Limited 13

14 Agenda The Property Impact on A-REIT Pro forma Financial Effect Portfolio Diversification Property Yield Timetable for Completion Acquisition Summary

15 Timetable for Completion September 2004 December 2004 (expected) Wisma Gulab Signed Put and Call Option Agreement Exercise option Execution of Sale and Purchase Agreement Completion The Property Impact on A-REIT Timetable for Completion Acquisition Summary 15

16 Agenda The Property Impact on A-REIT Pro forma Financial Effect Portfolio Diversification Property Yield Timetable for Completion Acquisition Summary

17 Acquisition Summary Freehold property Strategically located Diversifies property portfolio & tenant-mix The Property Impact on A-REIT Timetable for Completion Acquisition Summary Complements existing leasehold properties Yield-accretive: 7.9% property yield in the first year DPU positive of 0.13 cents per unit 17

18 The value of units in A-REIT ( Units ) and the income from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. The past performance of A-REIT is not necessarily indicative of the future performance of A-REIT. This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses, including employee wages, benefits and training, property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events. -End -

Proposed Acquisition of Exklusiv Building

Proposed Acquisition of Exklusiv Building 24 August 2004 Agenda The Property Impact on A-REIT Pro forma Financial Effect Portfolio Diversification Property Yield Timetable for Completion Acquisition Summary