Agenda. Overview. The Proposed Acquisitions. Benefits to Suntec REIT. Conclusion. Trust Management (Suntec) Limited

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Maryann Nichols
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2 Agenda Overview The Proposed Acquisitions Benefits to Suntec REIT Conclusion 2

3 Overview Increased diversification 1 property Existing Portfolio 408 tenants 2.1 mil sqft of Net Lettable Area ( NLA ) $2.2 bn deposited property Yield accretive transactions Enlarged Portfolio 13 properties 730 tenants 3.5 mil sqft of NLA $3.2 bn deposited property Strategic alliances with City Developments Limited ( CDL ) and Wing Tai Asia ( Wing Tai ) Strong and stable cashflows with potential upside from recovery in the office market and asset enhancements 3

4 Agenda Overview The Proposed Acquisitions Benefits to Suntec REIT Conclusion 4

5 Overview of Proposed Acquisitions Property Valuation (S$ mil) NLA / Car Park Lots WingTai Asia (1) Park Mall $230.0 mil 269,450 sqft / 346 lots City Developments Limited (2) Fuji Xerox Towers $253.0 mil 357,067 sqft / 364 lots (3) Plaza By The Park $195.6 mil 241,468 sqft / 132 lots (4) City House $117.6 mil 155,086 sqft / 7 lots (5) Central Mall $96.8 mil 131,602 sqft / 192 lots (6)The Arcade* $35.2 mil 43,277 sqft / (7) Katong Shopping Centre* $27.6 mil 89,150 sqft / 323 lots (8) North Bridge Commercial Complex* $19.8 mil 37,892 sqft / (9) Fortune Centre* $17.6 mil 38,876 sqft / (10) Golden Mile Complex* $9.8 mil 34,839 sqft / 504 lots (11) People s Park Centre Car Park** $8.5 mil / 408 lots (12) Queensway Shopping Centre Car Park** $6.5 mil / 167 lots CDL Properties Total $788.0 mil 1,129,257 sqft / 2,097 lots Total * Strata titled units within the property ** Strata titled stand-alone car parks within the property $1,018.0 mil 1,398,707 sqft / 2,443 lots 5

6 Strategically Located Assets Park Mall Central Mall Plaza By The Park Fortune Centre Katong Shopping Centre Peoples Park Centre - Carparks Queensway Shopping Centre - Carparks City House Golden Mile Complex North Bridge Commercial Complex Suntec City Fuji Xerox Towers The Arcade LEGEND: Park Mall City Centre CDL Properties 6

(NLA) Tenure Office NLA Retail NLA Total NLA Car Parking Lots Key Tenants Property Description $230.0 mil 7.

7 Park Mall Prime location Easily accessible via major thoroughfares and expressways Strong growth potential Next to new Singapore Management University campus Next to Dhoby Ghaut MRT station, a major inter-change Valuation % of Enlarged Portfolio (NLA) Tenure Office NLA Retail NLA Total NLA Car Parking Lots Key Tenants Property Description $230.0 mil 7.8% 63 years 126,055 sqft 143,395 sqft 269,450 sqft 346 lots X-tra Designs National University of S pore Star Cruises 15-storey office and shopping mall 7

Fuji Xerox Towers Excellent location within the CBD Easily accessible by major expressways 5 minutes walk from Tanjong Pagar MRT station Large floor plates of 13,500 sqft per floor Valuation % of

8 Fuji Xerox Towers Excellent location within the CBD Easily accessible by major expressways 5 minutes walk from Tanjong Pagar MRT station Large floor plates of 13,500 sqft per floor Valuation % of Enlarged Portfolio (NLA) Tenure Office NLA Retail NLA Total NLA Car Parking Lots Key Tenants Property Description $253.0 mil 10.3% 99 years 342,662 sqft 14,405 sqft 357,067 sqft 364 lots Fuji Xerox IDC Asia Publicis Eureka 38-storey office tower, including a four-storey Podium, overlooking the harbour and the southern islands 8

Plaza By The Park Prime location on Bras Basah Road with excellent frontage Close to the City Hall and Dhoby Ghaut MRT stations Large floor plates of 28,000 sqft per floor

retail units offer prime street frontage % of Enlarged Portfolio (NLA) Tenure Office NLA Retail NLA Car Parking Lots Key Tenants Property Description $195.6 mil 7.

9 Plaza By The Park Prime location on Bras Basah Road with excellent frontage Close to the City Hall and Dhoby Ghaut MRT stations Large floor plates of 28,000 sqft per floor Strong growth potential Valuation Total NLA New Circle Line MRT Station to open in front of the building Adjacent to the new Singapore Management University campus Ground floor retail units offer prime street frontage % of Enlarged Portfolio (NLA) Tenure Office NLA Retail NLA Car Parking Lots Key Tenants Property Description $195.6 mil 7.0% 99 years 213,299 sqft 28,169 sqft 241,468 sqft 132 lots Standard Chartered Intellectual Property Office of Singapore ( IPOS ) Kopitiam 11-storey office tower with retail units on the ground floor 9

10 City House Prime location Within the financial and business hub of Raffles Place & Shenton Way Close to Raffles Place MRT station Valuation % of Enlarged Portfolio (NLA) Tenure Office NLA Retail NLA Total NLA Car Parking Lots Key Tenants $117.6 mil 4.5% 99 years 149,166 sqft 5,920 sqft 155,086 sqft 7 lots City Developments Limited DLA Piper Rudnick Gray Cary Ramdas & Wong Property Description 23-storey office building strategically located at the junction of Robinson and Cecil Street and Cross Street 10

Retail NLA Total NLA Car Parking Lots Key Tenants $96.8 mil 3.

11 Central Mall Strategic location within the CBD Easily accessible via major expressways 5 minutes walk from Clarke Quay MRT station Large floor plates of 24,000 sqft and generous floor to ceiling heights Valuation % of Enlarged Portfolio (NLA) Tenure Office NLA Retail NLA Total NLA Car Parking Lots Key Tenants $96.8 mil 3.8% 99 years 119,181 sqft 12,421 sqft 131,602 sqft 192 lots Sun Mircosystems Davis Langdon & Seah KPK Quantity Surveyors Property Description 7-storey office block with ancillary ground floor retail units 11

Parking Lots Key Tenants Property Description $35.2 mil 1.

12 The Arcade Excellent location in the heart of Raffles Place On top of Raffles Place MRT station Office units offer excellent sea views Retail units enjoy strong traffic of office workers Valuation % of Enlarged Portfolio (NLA) Tenure Office NLA Retail NLA Total NLA Car Parking Lots Key Tenants Property Description $35.2 mil 1.3% 99 years Strata units comprising 38,796 sqft Strata units comprising 4,481 sqft Strata units comprising 43,277 sqft ACP Asia Solutionnet Austpac PRD Realty 20-storey office-cum-retail building with 3 levels of retail space 12

Other Properties Strata title units in Katong Shopping

Complex Strata title units in Fortune Centre Strata title

Park Centre Car Park Strata title of Queensway Shopping

1% 1.0% Tenure 99 years 99 years 74 years 63 years 64

sqft 31,245 sqft Retail NLA 51,205 sqft 2,013 sqft 3,594

13 Other Properties Strata title units in Katong Shopping Centre Strata title units in North Bridge Commercial Complex Strata title units in Fortune Centre Strata title units in Golden Mile Complex Strata title of People s Park Centre Car Park Strata title of Queensway Shopping Centre Car Park Valuation $27.6 mil $19.8 mil $17.6 mil $9.8 mil $8.5 mil $6.5 mil % of Enlarged Portfolio (NLA) 2.6% 1.1% 1.1% 1.0% Tenure 99 years 99 years 74 years 63 years 64 years 99 years Office NLA 37,945 sqft 37,892 sqft 36,863 sqft 31,245 sqft Retail NLA 51,205 sqft 2,013 sqft 3,594 sqft Total NLA 89,150 sqft 37,892 sqft 38,876 sqft 34,839 sqft Car Parking Lots 323 lots 504 lots 408 lots 167 lots 13

14 Agenda Overview The Proposed Acquisitions Benefits to Suntec REIT Conclusion 14

15 Benefits of the Acquisitions Increased diversification Yield accretive transaction Strategic alliances with CDL and Wing Tai Potential upside Greater trading liquidity and flexibility 15

16 Geographical Diversification Removal of Single Asset Risk Park Mall Central Mall Plaza By The Park Fortune Centre Katong Shopping Centre Peoples Park Centre - Carparks Queensway Shopping Centre - Carparks City House Golden Mile Complex North Bridge Commercial Complex Suntec City Fuji Xerox Towers The Arcade LEGEND: Park Mall City Centre CDL Properties 16

17 Asset Diversification Further Diversification of Income Existing Portfolio (by NLA) Suntec City 100% Enlarged Portfolio (by NLA) Central Mall 3.8% City House 4.5% Plaza By The Park 7.0% Park Mall 7.8% Others 7.1% Suntec City 59.5% Fuji Xerox 10.3% Single Asset Portfolio of 13 Assets 17

18 Diversification Benefits An Enlarged and Balanced Tenant Base No. of Tenants Before Acquisitions After Acquisitions No. of Tenants Retail Office Notes: (1) As of 15 May 2005 Existing Properties Proposd Acquisitions 18

19 Strategic Alliance with CDL Alignment of Interest with CDL Expected to Spur Future Growth CDL will be a strategic advisor to ARA CDL will continue to be the property manager (with respect to the CDL properties) CDL will continue to have an economic interest in Suntec REIT through the deferred consideration Growth of Suntec REIT Portfolio 19

20 Synergistic Alliance with Wing Tai Group Mutual Benefit from Synergistic Relationship Wing Tai will continue to be the property manager of Park Mall Alliance with Wing Tai s stable of retail brands Growth of Suntec REIT Portfolio 20

Acquiring into a Recovering Market Prime Grade A and B Office Markets on a Recovery Path $psf / mth 8 7 6 5 4 3 2000

21 Acquiring into a Recovering Market Prime Grade A and B Office Markets on a Recovery Path $psf / mth F 2006F 2007F 2008F Prime Grade A Prime Grade B Source: Jones Lang LaSalle Research, June

22 Upside from Balanced Portfolio Revenue Contribution will be Balanced between Office and Retail Existing Properties by Revenue (1) Post Acquisitions by Revenue (1) Office 37% Retail 63% Office 46.5% Retail 53.5% Suntec City Notes: (1) Based on managers estimates of existing and acquisition properties Enlarged Portfolio 22

23 Balanced Expiry Profile Expiry Profile Allows Suntec to Take Advantage of Recovering Market Retail % of Suntec REIT NLA 40% 30% 20% 10% 0% 37% 33% 14% 7% 9% & Existing Properties beyond % of Suntec REIT NLA 40% 30% 20% 10% 0% 35% 27% 22% 7% 9% & Post Acquisition beyond Office % of Suntec REIT NLA 40% 30% 20% 10% 0% 31% 24% 26% 13% 6% & Existing Properties beyond % of Suntec REIT NLA 33% 28% 23% 18% 13% 8% 3% -2% 30% 24% 22% 17% 7% & Post Acquisition beyond Notes: (1) Based on existing leases as per [30 June 2005] 23

24 Greater Trading Liquidity and Flexibility Creation of a Stronger Platform Total Deposited Property (S$ mm) 4,000 3,500 3,000 2,500 2,000 1,500 1, ,189 Existing Properties Proposd Acquisitions 1,018 2,171 2,355 2,233 2,078 1,657 (1) (1) (1) (1) (1) Suntec REIT CMT A-REIT CCT Fortune REIT Notes: Source: Company reports and announcements (1) Based on deposited property as of 31 March 2005 and includes announced acquisitions 24

25 Agenda Overview The Proposed Acquisitions Benefits to Suntec REIT Conclusion 25

26 Conclusion Increased Diversification Strategic Alliances Value Enhancement Yield Accretion Potential Upside 26

27 Thank You!

28 Disclaimer This presentation is focused on comparing actual results versus forecasts outlined in the Suntec REIT Prospectus dated 29 Nov It should be read in conjunction with Paragraph 9 of Suntec REIT s financial results for the period 9 Dec 2004 to 31 Mar 2005 announced on SGXNET. 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. The value of the Units and the income derived 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 or purchase their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on Singapore Exchange Securities Trading Limited ( SGX-ST ). Listing of the Units on the SGX-ST does not guarantee a liquid market of the Units.

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