SUNWAY REIT PROPOSES TO ACQUIRE MIXED-USE SUNWAY CLIO PROPERTY TO CAPITALISE ON THE BUSINESS SYNERGIES OF OUR ASSETS PORTFOLIO IN SUNWAY CITY

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1 MEDIA RELEASE 3 August 2017 SUNWAY REIT PROPOSES TO ACQUIRE MIXED-USE SUNWAY CLIO PROPERTY TO CAPITALISE ON THE BUSINESS SYNERGIES OF OUR ASSETS PORTFOLIO IN SUNWAY CITY The ttal purchase cnsideratin f RM340 millin t be funded by debt and the prpsed acquisitin is expected t be yield accretive t the asset prtfli Guaranteed net prperty incme fr fur years t ffer certainty f incme stream Sunway REIT s prperty value will increase by 7.0% t RM6.9 billin Bandar Sunway, 3 August 2017 Sunway REIT Management Sdn. Bhd., the Manager f Sunway Real Estate Investment Trust ( Sunway REIT ), is pleased t annunce that RHB Trustees Berhad, as trustee f Sunway REIT ( Trustee ), has entered int a cnditinal sale and purchase agreement ( SPA ) with Sunway Frum Htel Sdn. Bhd. ( Vendr ), a whlly-wned subsidiary f Sunway Berhad ( Sunway ), fr the prpsed acquisitin f Sunway Cli Prperty ( The Prperty ) (as defined belw) fr a ttal purchase cnsideratin f RM340 millin t be satisfied in cash ( Purchase Cnsideratin ) ( Prpsed Acquisitin ). The Prperty has been independently valued by Knight Frank Malaysia. The Prperty cnsists f a 19-strey 4-star rated htel cmprising 401 htel rms knwn as Sunway Cli Htel, a 3-strey retail space with net lettable area f 88,384 sq.ft. and a multi-strey car park with 732 bays. The Prperty is strategically lcated at Sunway City frnting the New Pantai Expressway ( NPE ) and within the sprawling 800 acres f Malaysia s first fully integrated green twnship certified by the Green Building Index ( GBI ). Sunway Cli Prperty is cnnected t the renwned Sunway Pyramid Mall thrugh a pedestrian sky bridge and seamless undergrund car park. Sunway City is lcated apprximately 20 minutes frm the Kuala Lumpur city centre and well cnnected t the cities f Shah Alam, Petaling Jaya and Klang via an extensive netwrk f rad and espressway such as the Federal Highway, the Shah Alam Expressway ( KESAS ), the New Klang Valley Expressway ( NKVE ), the Nrth-Suth Expressway Central Link ( ELITE ) and the Damansara-Puchng Expressway ( LDP ). 1

2 The twnship is well-served by public transprtatin by the urban-suburb rail link, the KTM Kmuter, the Light Rail Transit ( LRT ) and the cuntry s first Bus Rapid Transit ( BRT ) system. Prperty Descriptin Title details : H.S. (D) Lt N. PT 1333, Bandar Sunway, District f Petaling, Selangr Darul Ehsan Tenure : Leasehld interest fr a term f 99 years, expiring n 16 Nvember 2108 Age f building : 1.5 years Land area : 77,403 sq.ft. (7,191 sq.m.) Grss Flr Area : 798,762 sq.ft. (74,207 sq.m.) N f Htel Rms: : 401 rms Net Lettable Area (Retail Space) : 88,384 sq.ft. (8,211 sq.m.) Market Value : RM340 millin (Independently valued by Knight Frank Malaysia) Purchase Price : RM340 millin Sunway Cli Htel will be leased t Sunway Resrt Htel Sdn. Bhd. ( SRH ) ( Lessee ) pursuant t a htel lease agreement ( HLA ) entered int between the Trustee, the Manager and SRH, fr an initial term f ten (10) years with an ptin t renew by the Lessee fr a further perid f ten (10) years ( Renewal Term ). The HLA is backed by a guaranteed minimum rent which acts as a prtectin t safeguard the dwnside risk f the rental incme with sharing n the upside f the incme based n a rental frmula. The Trustee has als entered int a cnditinal car park tenancy agreement with Sunway Leisure Sdn. Bhd., a whlly-wned subsidiary f Sunway ( Tenant ) fr a perid f three (3) years cmmencing frm the date f cmpletin f the Prpsed Acquisitin with an ptin t renew fr a further term f 3 years. In additin, Sunway City Sdn. Bhd. ( SunCity ), a whlly-wned subsidiary f Sunway and the hlding cmpany f the Vendr, Lessee and Tenant, is prviding the Trustee a Guaranteed Net Prperty Incme ( NPI ) f RM20.23 millin per annum fr a perid f 4 years frm the day f the cmpletin date. In the event that there is any shrtfall, SunCity shall pay the amunt equivalent t the difference between the actual ttal annual NPI achieved and the Guaranteed NPI. 2

3 Sunway REIT s prperty value will increase by 7.0% frm RM6.4 billin as at 30 June 2016 t RM6.9 billin upn the cmpletin f Sunway REIT s recent acquisitins, namely Sunway Carnival Land (Purchase cnsideratin: RM17.2 millin), Sunway REIT Industrial-Shah Alam 1 (Purchase cnsideratin: RM91.5 millin) and the said Prpsed Acquisitin. The Prpsed Acquisitin will be fully funded by its existing debt prgramme. The Prpsed Acquisitin is nt expected t have any material effect n the earnings and distributin per unit ( DPU ) f Sunway REIT fr the financial year ending 30 June Nevertheless, the Prpsed Acquisitin is expected t cntribute psitively t the future earnings and DPU f Sunway REIT as well as yield accretive t the assets prtfli. Dat Jeffrey Ng, CEO f Sunway REIT Management Sdn. Bhd., said, The acquisitin will further strengthen Sunway REIT s diversified assets prtfli and capitalise n the business synergies in Sunway City. We will be able t ffer a cmplete suites f htels ranging frm 4-star t 5-star htels within the same vicinity. The retail pdium frms the enlarged Sunway Pyramid Mall thrugh the direct cnnectivity at the West precinct f the mall and just a stne s thrw away frm the multi-award winning Sunway Lagn. We are cnfident that the tremendus business synergies within the twnship cupled with an experienced htel peratr and Facilities Management team will maximise the perfrmance f the prperty. He added, The prperty is expected t recrd healthy grwth ver the lnger term hrizn supprted by the strng catchment in the twnship. The twnship welcmes 42 millin visitatins annually and the number is still grwing. Sunway City remains as ne f Sutheast Asia s mst preferred turist destinatins. Upn cmpletin f the Prpsed Acquisitin, Sunway REIT will have a ttal rms inventry f mre than 1,400 rms in Sunway City. We are increasing ur marketing effrts t prmte ur prtfli f htels in Sunway City t attract mre turists frm new markets in the Middle East and ther parts f Asia. We believe the Prpsed Acquisitin is timely t cater t the higher rms inventry t capture a larger market share. He further elabrated, Sunway REIT s assets will increase t 16 prperties upn the cmpletin f the Prpsed Acquisitin and reinfrces its psitin as the secnd largest REIT in Malaysia with a cmbined prperty value f RM6.9 billin. 3

4 Abut Sunway Real Estate Investment Trust Sunway Real Estate Investment Trust (Sunway REIT r Trust) is ne f the largest retail-fcused 1 real estate investment trusts (REITs) in Malaysia with a diverse prtfli strategically lcated acrss award-winning integrated twnships in key lcatins in Greater Kuala Lumpur, Penang, and Perak. Sunway REIT was listed n the Main Market f Bursa Malaysia Securities Berhad (Bursa Malaysia) n 8 July The market capitalisatin f Sunway REIT std at RM5.0 billin as at 2 August Sunway REIT is a cmpnent f FTSE-Bursa Malaysia Mid 70 Index, FTSE4 Gd Index and TR/GPR/APREA Cmpsite REIT Index Malaysia, FTSE EPRA / NAREIT Glbal REIT Index, FTSE EPRA / NAREIT Glbal Index, FTSE EPRA / NAREIT Asia ex Japan Index, FTSE EPRA / NAREIT Asia Pacific Index, FTSE EPRA / NAREIT Emerging REIT Index and MSCI Malaysia Small Cap Index. Currently, Sunway REIT wns a prtfli f 15 assets cmprising 4 retail malls, 5 htels, 4 ffices, a medical centre and an industrial prperty. Prperty value std at RM6.43 billin as at 30 June 2016 (excluding Sunway Carnival land and Sunway REIT Industrial Shah Alam 1). Sunway REIT s assets are primarily lcated in Sunway City where its flagship asset, Sunway Pyramid Mall, is lcated. The ther assets lcated in Sunway City include Sunway Resrt Htel & Spa, Sunway Pyramid Htel (frmerly knwn Sunway Pyramid Htel East), Menara Sunway and Sunway Medical Centre. On the nrthern Peninsular f Malaysia, Sunway REIT wns SunCity Iph Hypermarket in Perak. On the mainland f Penang, Sunway REITs wns Sunway Htel Seberang Jaya and Sunway Carnival Shpping Mall. In FY2015, Sunway REIT added tw assets int the prtfli, namely Wisma Sunway in Shah Alam, Selangr and Sunway Htel Gergetwn, marking its maiden fray int Penang Island. Sunway REIT wns fur prperties in in Kuala Lumpur, namely Sunway Twer and the remaining three assets which cnstitute part f the 3-in-1 integrated develpment, Sunway Putra (frmerly knwn as Sunway Putra Place). Sunway Putra cnsists f Sunway Putra Mall, Sunway Putra Htel and Sunway Putra Twer. On 1 August 2017, Sunway REIT has cmpleted the acquisitin f Sunway REIT Industrial-Shah Alam 1, marking its maiden fray in the industrial sub-sectr. 1 Retail-fcused is defined as at least 60% cntributin frm the retail assets t prperty value, revenue r NPI. 4

5 Imprtant ntice Kindly read this media release in cnjunctin with the annuncement released t Bursa Malaysia dated 3 August 2017 fr a mre cmprehensive understanding f Sunway REIT s annuncement. This media release may cntain certain frward lking statements due t a number f risks, uncertainties and assumptins. Representative examples f these factrs include (withut limitatin) general industry and ecnmic cnditins; interest rate trends; cst f capital and capital availability including availability f financing in the amunts and the terms necessary t supprt future business; availability f real estate prperties; cmpetitin frm ther cmpanies; changes in perating expenses including emplyee wages, benefits and training, prperty expenses, gvernment and public plicy changes. Yu are cautined nt t place undue reliance n these frward lking statements which are based n Management s current view f future events. Past perfrmance is nt necessarily indicative f its future perfrmance. Fr mre infrmatin, please cntact: Crystal Teh Sunway REIT Management Sdn. Bhd. (As Manager f Sunway Real Estate Investment Trust) Tel : Fax : Mbile : crystaltll@sunway.cm.my Website f Sunway REIT: 5