Proposed Acquisition of a One third Interest in Marina Bay Financial Centre Towers 1 and 2, and the Marina Bay Link Mall MBFC Tower 1 MBFC Tower 2 Marina Bay Link Mall Singapore s Newest Iconic Development in the Heart of the new Business and Financial District Suntec REIT to acquire a one-third interest in Marina Bay Financial Centre Towers 1 and 2, the Marina Bay Link Mall and 695 car park lots (the MBFC Property ) ) from Choicewide Group Limited Choicewide Group Limited is indirectly held by Cheung Kong (Holdings) Limited and Hutchison Whampoa Limited with each of them holding a 50.0% interest Joint ownership by Suntec REIT (one-third interest), K-REIT Asia 1 (one-third interest) and Hongkong Land International Holdings Limited (one-third interest) Purchase price of S$1,495.8 million, including rental support of S$113.9 million (including GST) over a 60-month period from the completion date of the Acquisition Excluding the income support, the effective purchase consideration is S$1,397.7 million, which is equivalent to S$2,400 per sq ft Source: ARA Trust Management (Suntec) Limited ( ARATMS ) Notes: (1) As per K-REIT Asia s announcement dated 11 October 2010. 2 1
Details of the MBFC Property TOWER 1 TOWER 2 Property Description 33-Storey Office Tower ( Tower 1 ) 50-Storey Office Tower ( Tower 2 ) Marina Bay Link Mall 695 carpark lots Tenure 99 years leasehold with effect from 2005 Net Lettable Area (1) Approximately 582,377 sq ft TOP (2) 2010 Committed Occupancy (%) Valuation (1) MARINA BAY LINK MALL GROUND PLAZA LEVEL 33, TOWER 1 Approximately 96% (as at 30 September 2010) S$1,496 million (CB Richard Ellis (Pte) Ltd) S$1,497 million (Knight Frank Pte Ltd) Notes: (1) As at 30 September 2010. Reflects one-third interest in the MBFC Property. (2) BFC has received the temporary occupation permit for Tower 1, Tower 2 and the Marina Bay Link Mall in 2010. 3 Joint Ownership Structure One-third interest One-third interest One-third interest 1 BFC Development Pte. Ltd. Marina Bay Residences Pte. Ltd. MBFC Property Marina Bay Residences The 3 shareholders of BFC Development Pte. Ltd. ( BFC ) will enter into a Restated Shareholders Agreement in relation to the joint holding of BFC. The Acquisition excludes BFC s interest in Marina Bay Residences Pte. Ltd. Note: (1) As per K-REIT Asia s announcement on 11 October 2010. 4 2
Key Rationale for the Proposed Acquisition 1 Unique Opportunity to Invest in Iconic Landmark Development in the Marina Bay Business and Financial District 2 Strategic Addition to Suntec REIT s Portfolio 3 Greater Exposure to Grade A Office Market 4 Accretive Acquisition 5 Greater Income Diversification 5 Unique Opportunity to Invest in Iconic Landmark Development in the Marina Bay Business and Financial District In close proximity to Marina Bay Sands Integrated Resort, Singapore Flyer, Gardens by the Bay and the Esplanade Theatres Designed by internationally renowned architect firm Kohn Pedersen Fox Associates of New York, Marina Bay Financial Centre is Singapore s newest state-of-the-art Grade A office development 6 3
Strategic Addition to Suntec REIT s Portfolio Strengthens Suntec REIT s foothold in the Marina Bay growth corridor Singapore s new business and financial district High quality asset with blue-chip tenant base that will enhance Suntec REIT s existing portfolio 7 Greater Exposure to Grade A Office Market Increase Suntec REIT s office portfolio net lettable area from approximately 1.9 million sq ft to approximately 2.4 million sq ft Increased exposure to the strengthening Singapore office market Large floor plates ranging from with regular column free space, floor to ceiling windows, state-of-the-art building services and management systems Excellent connectivity and accessibility, Marina Bay Financial Centre will be served by the Downtown MRT line when it is expected to be operational around 2013 8 4
Contact ARA Trust Management (Suntec) Limited Yeo See Kiat Chief Executive Officer seekiatyeo@ara.com.hk Richard Tan Finance Director richardtan@ara.com.hk KT Yip Chief Operating Officer kamthaiyip@ara.com.hk Marilyn Tan Investor Relations Manager marilyntan@ara.com.hk #16-02 Suntec Tower 4 6 Temasek Boulevard Singapore 038986 Tel: +65 6835 9232 Fax: +65 6835 9672 www.suntecreit.com www.ara-asia.com 9 Thank You 10 5
Disclaimer The information included in this release does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for units in Suntec REIT ( Units ) in Singapore or any other jurisdiction. This presentation may contain forward-looking statements that involve assumptions, 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 other developments or companies, shifts in the expected levels of occupancy rates, property rental income, changes in operating expenses, including employee wages, 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. Past performance is not necessarily indicative of future performance. Predictions, projections or forecasts of the economy or economic trends of the markets are not necessarily indicative of the future or likely performance of Suntec REIT. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. IMPORTANT NOTICE 1. The value of Units and the income derived from them, if any, may fall or rise. Units are not obligations of, deposits in, or guaranteed by, ARA Trust Management (Suntec) Limited (as the manager of Suntec REIT) (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. 2. Investors should note that they will have no right to request the Manager to redeem or purchase their Units for so long as the Units are listed on Singapore Exchange Securities Trading Limited (the SGX-ST ). It is intended that holders of Units may only deal in their Units through trading on the SGX-ST. The listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. 3. The past performance of Suntec REIT is not necessarily indicative of the future performance of Suntec REIT. 11 6