ASCOTT RESIDENCE TRUST October 2006 0
Acquisition of Ascott Manila Manila The Philippines 23 November 2006 1
Acquisition Highlights Sale and purchase agreement with Ayala Hotels Inc. and Ocmador Philippines BV to purchase their respective 60 percent and 40 percent stakes in Oakwood Premier Ayala Center in Makati City for US$53.0 million (about S$84.4 million or PHP 2.7 billion) Annualised property yield of around 11 percent 1 is highly yield-accretive (compared to the annualised portfolio property yield of 4.9 percent 2 ) Property will be re-branded as Ascott Manila upon completion in March 2007, to be managed by Ascott International Management Ascott Manila Expands ART s portfolio to 15 properties in six countries with a total property value of S$1.04 billion. 1 For the forecast year 2007. 2 Based on initial portfolio of 12 properties for the forecast year 2006. 2
Ascott Manila Excellent location in the heart of Makati City, the business and financial capital of The Philippines Enjoy operating and cost efficiencies from cluster synergies Somerset Salcedo, Makati Buendia Avenue Somerset Millennium, Makati LEGASPI VILLAGE SALCEDO VILLAGE Ayala Avenue Buendia Station Ascott Manila Glorietta Ayala Station 3
Geographic Diversification of Gross Profit Pre-Acquisition 1,2 Post-Acquisition 1,3 Singapore 21% Vietnam 19% China 41% Singapore 18% Vietnam 16% China 36% Philippines 3% Japan 1% Indonesia 15% Philippines 16% Japan 1% Indonesia 13% Total Gross Profit 4 Increases 15% to S$56.1m 1 Based on the assumptions set out in the Prospectus and ART s proportionate share of the gross profit of the Properties for the Forecast Year 2006. Assumes the acquisitions took place on 1 January 2006. 2 Based on a portfolio of 14 properties. 3 Based on a portfolio of 15 properties, following the acquisition of Ascott Manila. 4 For ART s share of Gross Profit in the forecast year 2006 for the pre-acquisition portfolio of 14 properties and ART s share of Gross Profit in the forecast year 2007 for Ascott Manila. 4
Geographical Diversification of The Portfolio Pre-Acquisition 1 Post-Acquisition 2 Singapore 15% Vietnam 15% China 30% Singapore 13% Vietnam 13% China 27% Philippines 9% Japan 3% Indonesia 28% Philippines 20% Japan 2% Indonesia 25% Total portfolio increases 13% to reach 2,610 units in 6 countries 1 Based on a portfolio of 14 properties. 2 Based on a portfolio of 15 properties, following the acquisition of Ascott Manila. 5
Attractions of Manila Steady recovery of the Philippine economy Real GDP growth for 2006 expected to be a strong 5.3 percent 1 Boosted by growth in mining industry 2 International reserves at an all time high of US$21.6 billion 3 Top choice for call centre location for multinational companies 4 Promoted as a Meetings, Incentive Travel, Conventions and Exhibitions (M.I.C.E.) destination Very limited supply of good quality serviced residences to meet the growing demand of business travellers in Makati City Strong performance by the serviced residence industry High average occupancy 5 of 75% in the Makati CBD ART s two serviced residences in Makati City achieved 27% RevPAU growth in Q3 2006 1 Source: Economic Intelligence Unit 2 Source: Manila Bulletin, September 2006 3 Source: Philippine Government website, http://www.gov.ph 4 Source: Pulse Economic Insight. Philippines. October 2006. Jones Lang Lasalle. 5 Average occupancy rate for serviced residences in the Makati CBD in 2005. Source: Philippine Business Magazine. 6
Property Highlights Property Description In Operation Since 1999 Facilities Number of Units 21-storey building in the heart of Makati City s central business district with two towers of serviced residences, three basement levels and 256 carpark lots Fitness centre, gymnasium, swimming pool, business centre, meeting rooms, tennis courts and a restaurant 306 apartment units Average Occupancy Above 90% Constructed Floor Area 63,094.8 sqm 7
Acquisition Highlights Highly yield-accretive acquisition About 11% yield Prime location in the heart of Makati City, the business and financial capital of The Philippines Clearly demonstrates ART s ability to secure yieldaccretive properties from third party owners 8
World s First Pan-Asian Serviced Residence REIT China 4 properties in Beijing, Shanghai and Tianjin S$1.04 billion portfolio value 15 properties in 9 Pan-Asian cities 2,610 apartment units Japan 1 property in Tokyo Vietnam 2 properties in Hanoi and Ho Chi Minh City The Philippines 3 properties in Makati City, Manila Singapore 2 properties Indonesia 3 properties in Jakarta New acquisition 9
Thank You 10