Offer Information Statement Dated 12 March 2007 (The “2007 Offer Information Statement”), Certain of Which May Continue to Be Applicable to Ascott REIT

OFFER INFORMATION Dated STATEMENT 13 September 2010 Lodged with the Monetary Authority of Singapore on 13 September 2010 (a unit trust constituted on 19 January 2006 under the laws of the Republic of Singapore)

SINGAPORE

VIETNAM

FRANCE

UNITED KINGDOM

BELGIUM

GERMANY

SPAIN

THIS OFFER INFORMATION STATEMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. Offer and placement of 487,518,000 New Units in Ascott REIT by way of: If you are in any doubt as to the action you should take, you should consult your stockbroker, bank manager, solicitor, accountant or other professional, independent adviser immediately. (a) A non-renounceable Preferential Offering of 67,858,000 New Units at the The collective investment scheme offered in this Offer Information Statement is an authorised scheme under the Preferential Offering issue price of between $1.07 and $1.11 (the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”). A copy of this Offer Information Statement, “Preferential Offering Issue Price”) per New Unit on the basis of one New together with the acceptance form for the new units (the “New Units”) in Ascott Residence Trust (“Ascott REIT”) to be issued for the purpose of the Equity Fund Raising (as defined herein), has been lodged with the Monetary Unit for every 10 Existing Units held on the Preferential Offering Books Authority of Singapore (the “Authority”). The Authority assumes no responsibility for the contents of this Offer Closure Date (fractions of a New Unit to be disregarded and taking into Information Statement. Lodgment of this Offer Information Statement with the Authority does not imply that the SFA, or account the Rounding Mechanism) to Singapore Registered Unitholders; and any other legal or regulatory requirements, have been complied with. The Authority has not, in any way, considered the merits of the units being offered, or in respect of which an invitation is made, for investment. (b) A Private Placement of 419,660,000 New Units at the Approval in-principle has been obtained from the Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the Private Placement issue price of between $1.07 and $1.13 (the “Private listing of and quotation for the New Units in Ascott REIT on the Main Board of the SGX-ST. The SGX-ST’s in-principle Placement Issue Price”) per New Unit to institutional and other investors. approval is not an indication of the merits of the Equity Fund Raising, the New Units, Ascott REIT and/or its subsidiaries.

Investing in the New Units involves risks. See the section titled “Risk Factors” for a discussion of certain The final Preferential Offering Issue Price and the Private Placement Issue Price factors to be considered in connection with investment in the New Units. None of the Manager, the Trustee and will be determined by the Joint Lead Managers, Bookrunners and Underwriters the Joint Lead Managers, Bookrunners and Underwriters (each as defined herein) guarantees the performance of with the agreement of the Manager, within the respective price ranges above, Ascott REIT, the repayment of capital, performance of or the payment of a particular return on the New Units. after a book-building process, and will be announced by the Manager there- THE NEW UNITS HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES after. Such announcement will be made prior to the commencement of the ACT OF 1933, AS AMENDED (THE “US SECURITIES ACT”), AND ARE BEING OFFERED AND SOLD TO CERTAIN Preferential Offering. PERSONS IN OFFSHORE TRANSACTIONS IN RELIANCE ON REGULATIONS UNDER THE US SECURITIES ACT (“REGULATION S”).

No units in Ascott REIT (the “Units”) shall be allotted on the basis of this Offer Information Statement later than the date falling six months from the date of lodgment of this Offer Information Statement. Managed by IMPORTANT DATES AND TIMES ASCOTT RESIDENCE TRUST MANAGEMENT LIMITED

Preferential Offering Opens On Closes On • Via acceptance form for 24 September 2010 30 September 2010 Preferential Offering New Units at 9.00 a.m. at 5.00 p.m. (as defined herein) and the application form for excess New Units (“ARE”) Sole Financial Adviser and Joint Lead Managers, • Via ATMs of Participating Banks 24 September 2010 30 September 2010 Sole Global Coordinator for the Bookrunners and Underwriters for the (each term as defined herein) at 9.00 a.m. at 9.30 p.m. Equity Fund Raising Equity Fund Raising

For enquiries, please contact us at 6389 9311 between 9:00 a.m. and 5:00 p.m., Mondays to Fridays (excluding public holidays). This overview section is qualified in its entirety by, and should be read in conjunction with, the full text of this Offer Information Statement. Capitalised terms used in this Offer Information Statement should have the meanings set out in the Glossary.

OVERVIEW

At an extraordinary general meeting of Unitholders held on 9 September 2010, Unitholders approved the resolutions for, amongst others, the proposed acquisition of interests in serviced residence properties in Singapore, Vietnam and Europe, the proposed divestment of interest in a serviced residence property in the People’s Republic of China and the proposed issue of New Units by Ascott REIT so as to raise gross proceeds of approximately $560.6 million+ in order to part fund the acquisition, with the balance of proceeds to be used for associated costs and working capital purposes.

BENEFITS TO UNITHOLDERS THE EQUITY FUND RAISING

The Manager believes that the Target Acquisitions will allow Accordingly, the Manager is issuing 487,518,000 New Units so as to + Unitholders to enjoy the following benefits: raise gross proceeds of approximately $560.6 million . The Equity Fund Raising comprises: • The Target Acquisitions constitute a substantial portfolio of serviced The Preferential Offering residence properties with a total asset value of approximately $1.4 Singapore Registered Unitholders have the opportunity to participate billion. They present Ascott REIT with a rare opportunity to acquire a in the Preferential Offering of 67,858,000 Preferential Offering New large portfolio of assets and will strengthen Ascott REIT’s presence Units on a non-renounceable basis of one Preferential Offering New in Asia Pacific and expand Ascott REIT’s portfolio into the global Unit for every 10 Existing Units held as at the Preferential Offering cities of London and Paris. Books Closure Date, fractions of a Unit to be disregarded and taking • The Target Acquisitions would enable Ascott REIT to grow into account the Rounding Mechanism, at the Preferential Offering Is- through the acquisition of a portfolio of serviced residences which sue Price of between $1.07 and $1.11 per Preferential Offering New enhances the diversification of Ascott REIT’s portfolio across Unit. geographies, and property and economic cycles. Acceptance of, and payment for the provisional allotments of • The Target Properties, which are currently owned and managed Preferential Offering New Units and application for Excess New Units, by The Ascott Limited (TAL), are expected to be readily integrated if any, may be effected, in full or in part, via an ARE or through the with Ascott REIT’s Existing Portfolio and benefit from TAL’s operating ATMs of Participating Banks. track record and network. • The Europe Target Acquisitions are expected to increase Singapore Registered Unitholders who have subscribed for or the income stability of Ascott REIT through the long- purchased Units under the CPF Investment Scheme and/or the term Master Leases in respect of 19 of the Europe Target SRS can only accept their provisional allotments of Preferential Properties and seven of the Europe Target Properties which Offering New Units and if applicable, apply for Excess New Units by are on SR Management Agreements that provide for a minimum instructing the relevant banks in which they hold their CPF Investment Scheme accounts and/or SRS accounts to subscribe for Preferential guaranteed net operating profit per annum. Offering New Units on their behalf. • The Target Acquisitions are expected to be yield accretive and are expected to increase the distribution per Unit to Unitholders for the The Private Placement Forecast Period 2010 and the Projection Year 2011. A placement of 419,660,000 New Units at the Private Placement • The absolute size of Ascott REIT’s asset base and free float will Issue Price of between $1.07 and $1.13 per Private Placement New be substantially increased and as a result may raise the profile of Unit to institutional and other investors by the Joint Lead Managers, Ascott REIT among global investors and enlarge its Unitholder Bookrunners and Underwriters. base. STATUS OF THE NEW UNITS

ASCOTT REIT’S SIZE AND FOOTPRINT The Preferential Offering New Units and Private Placement New Units TO EXPAND SIGNIFICANTLY will, upon issue and allotment, rank pari passu in all respects with the Existing Units, including the right to any distributions which may be paid for the period from the date of issue of the Private Placement New Units to 31 December 2010, as well as all distributions thereafter.

For the avoidance of doubt: UNITED KINGDOM (a) the Preferential Offering New Units and the Private Placement New Units will not be entitled to the Advanced Distribution and;

property (b) the New Units (including the Preferential Offering New Units) will (1) be entitled to the distribution of any Distributable Income from the date of issue of the Private Placement New Units.

(2)

existing Portfolio $2.85 billion portfolio value target Portfolio 6,681 apartment units in 65 properties (1) After divestment of the Ascott Beijing as part of the Transactions. (2) Ascott REIT announced on 6 August 2010 that it has entered into a sale and purchase agreement 23 cities in 12 countries to divest Country Woods in Indonesia. This divestment is expected to be completed in 4Q 2010.

+Assuming an illustrative issue price of $1.15 per New Unit. TABLE OF CONTENTS

NOTICE TO UNITHOLDERS AND INVESTORS ...... iii

FORWARD LOOKING STATEMENTS ...... vi

MARKET AND INDUSTRY INFORMATION ...... vii

CERTAIN DEFINED TERMS AND CONVENTIONS ...... vii

ELIGIBILITY OF UNITHOLDERS TO PARTICIPATE IN THE PREFERENTIAL OFFERING.... ix

IMPORTANT NOTICE TO (A) CPFIS INVESTORS, (B) SRS INVESTORS AND (C) INVESTORS WHO HOLD UNITS THROUGH A FINANCE COMPANY AND/OR DEPOSITORY AGENT .... xi

GLOSSARY ...... xii

CORPORATE INFORMATION ...... xxiii

SUMMARY...... 1

INDICATIVE TIMETABLE ...... 4

EQUITY FUND RAISING ...... 5

USE OF PROCEEDS ...... 11

CAPITALISATION, INDEBTEDNESS AND EXISTING BORROWINGS ...... 13

DISTRIBUTION POLICY ...... 14

INFORMATION RELATING TO THE TRANSACTIONS ...... 15

RISK FACTORS...... 37

CERTAIN FORECAST FINANCIAL INFORMATION RELATING TO THE TRANSACTIONS, THE EQUITY FUND RAISING AND THE DEBT FINANCING ...... 58

PRO FORMA FINANCIAL EFFECTS OF THE TRANSACTIONS ...... 61

DISCUSSION OF THE PRO FORMA RESULTS OF OPERATIONS AND FINANCIAL CONDITION OF THE ENLARGED PORTFOLIO ...... 67

DISCUSSION OF TRENDS AND PROSPECTS AFFECTING THE ENLARGED PORTFOLIO ...... 70

DISCUSSION OF THE HISTORICAL RESULTS OF OPERATIONS AND FINANCIAL CONDITION OF ASCOTT REIT ...... 71

INFORMATION RELATING TO ASCOTT REIT ...... 77

DESCRIPTION OF THE UNITS ...... 81

GENERAL INFORMATION ...... 83

RELATED PARTY TRANSACTIONS ...... 86

PLAN OF DISTRIBUTION ...... 91

TRANSFER RESTRICTIONS...... 97

i APPENDIX A – INFORMATION ON THE ENLARGED PORTFOLIO ...... A-1

APPENDIX B – TAX CONSIDERATIONS ...... B-1

APPENDIX C – UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION ... C-1

APPENDIX D – INDEPENDENT ACCOUNTANTS’ REPORT ON THE UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION...... D-1

APPENDIX E – PROFIT FORECAST AND PROFIT PROJECTION ...... E-1

APPENDIX F – INDEPENDENT ACCOUNTANTS’ REPORT ON PROFIT FORECAST AND PROFIT PROJECTION ...... F-1

APPENDIX G – SUMMARY VALUATION CERTIFICATES OF THE TARGET PROPERTIES AND ASCOTT BEIJING...... G-1

APPENDIX H – INDEPENDENT SERVICED RESIDENCES MARKET OVERVIEW REPORT BY JONES LANG LASALLE HOTELS/JONES LANG LASALLE PROPERTY CONSULTANTS PTE LTD ...... H-1

APPENDIX I – PROCEDURES FOR ACCEPTANCE OF, PAYMENT AND EXCESS APPLICATION FOR NEW UNITS UNDER THE PREFERENTIAL OFFERING BY SINGAPORE REGISTERED UNITHOLDERS ...... I-1

APPENDIX J – ADDITIONAL TERMS AND CONDITIONS FOR ELECTRONIC ACCEPTANCES OF PREFERENTIAL OFFERING NEW UNITS THROUGH AN ATM OF A PARTICIPATING BANK ...... J-1

APPENDIX K – LIST OF PARTICIPATING BANKS...... K-1

ii NOTICE TO UNITHOLDERS AND INVESTORS You should rely only on the information contained in this document and other documents to which we have referred you. Neither the Manager nor the Trustee has authorised anyone to provide you with information that is different. This document may only be used where it is legal to sell Units. The information in this document may only be accurate on the date of this document. Neither the United States Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this offering document is truthful or complete. Any representation to the contrary is a criminal offence. The New Units have not been registered under the US Securities Act nor under the securities laws of any other jurisdiction. Therefore, the New Units are only being offered to persons outside the United States in compliance with Regulation S of the US Securities Act. The New Units are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under the US Securities Act and applicable state securities laws, pursuant to registration or an available exemption therefrom. Any offer to purchase New Units shall be made solely by this offering document, only in those jurisdictions where permitted by law. Before investing in the New Units, prospective investors should read this offering document in its entirety, for more complete information about Ascott REIT and the Units. No person has been authorised to give any information or make any representations other than those contained in this Offer Information Statement in connection with the Equity Fund Raising and, if given or made, such information or representations must not be relied upon as having been authorised by Ascott REIT, Ascott Residence Trust Management Limited (in its capacity as manager of Ascott REIT) (the “Manager”), DBS Trustee Limited (in its capacity as trustee of Ascott REIT) (the “Trustee”), Credit Suisse (Singapore) Limited (“Credit Suisse”) or DBS Bank Ltd. (“DBS” and together with Credit Suisse, the “Joint Lead Managers, Bookrunners and Underwriters”). Save as expressly stated in this Offer Information Statement, nothing contained herein is, or may be relied upon as, a promise or representation as to the future performance or policies of Ascott REIT or the Manager. Neither the delivery of this Offer Information Statement nor the issue of the New Units shall, under any circumstances, constitute a representation, or give rise to any implication, that there has been no material change in the affairs of Ascott REIT or in any of the information contained herein since the date of this Offer Information Statement. Where such changes occur after the date of this Offer Information Statement and are material and are required to be disclosed by law and/or the SGX-ST, the Manager will announce such changes via SGXNET (as defined herein), and if required, lodge a supplementary or replacement document with the Authority. All unitholders of Ascott REIT (the “Unitholders”) and investors should take note of any such announcement and, upon the release of such announcement or lodgment of such supplementary or replacement document, as the case may be, shall be deemed to have notice of such changes. This Offer Information Statement may not be used for the purpose of, and does not constitute, an offer, invitation or solicitation in any jurisdiction or in any circumstances in which such offer, invitation or solicitation is unlawful or unauthorised, or to any person to whom it is unlawful to make such offer, invitation or solicitation. In addition, no action has been or will be taken in any jurisdiction (other than Singapore) that would permit a public offering of the New Units or the possession, circulation or distribution of this Offer Information Statement or any other material relating to Ascott REIT or the New Units in any jurisdiction where action for that purpose is required. The New Units may not be offered or sold, directly or indirectly and neither this Offer Information Statement nor any other offering material or advertisements in connection with the New Units may be distributed or published in or from any country or jurisdiction except, in each case, under circumstances that will result in compliance with any applicable rules and regulations of any such country or jurisdiction. No information in this Offer Information Statement should be considered to be business, legal or tax advice regarding an investment in the New Units and/or the Units. The Manager, the Trustee, Credit Suisse and DBS and their respective officers and employees make no representation, warranty or recommendation whatsoever as to the merits of the Equity Fund Raising, the New Units, Ascott REIT, the Transactions (as defined herein) or any other matter related thereto or in connection therewith. Nothing in this Offer Information Statement or the accompanying documents shall be construed as a recommendation to subscribe for the New Units. Prospective subscribers of the New Units should rely on their own investigation, appraisal and determination of the merits of investing in Ascott REIT and shall be deemed to have done so.

iii This Offer Information Statement and the accompanying documents have been prepared solely for the purposes of the Equity Fund Raising and may not be relied upon for any other purposes. The New Units have not been and will not be registered under the US Securities Act and may not be offered or sold within the United States (as defined in Regulation S). The distribution of this Offer Information Statement and the placement of the New Units in certain jurisdictions may be prohibited or restricted by law. Persons who come into possession of this Offer Information Statement and/or its accompanying documents are required by the Manager, Credit Suisse and DBS to inform themselves of, and observe, any such prohibitions and restrictions. The audited consolidated financial statements of Ascott REIT for the financial year ended 31 December 2007 (the “2007 Audited Consolidated Financial Statements”), the audited consolidated financial statements of Ascott REIT for the financial year ended 31 December 2008 (the “2008 Audited Consolidated Financial Statements”), the audited consolidated financial statements of Ascott REIT for the financial year ended 31 December 2009 (the “2009 Audited Consolidated Financial Statements”) and the unaudited consolidated financial statements of Ascott REIT for the 6-month period ended 30 June 2010 (the “1H2010 Unaudited Consolidated Financial Statements”) (collectively, the “Financial Statements”) are deemed incorporated into this Offer Information Statement by reference, are current only as at the dates of such financial statements, and the incorporation of the financial statements by reference will not create any implication that there has been no change in the affairs of Ascott REIT since the respective dates of such financial statements or that the information contained in such financial statements is current as at any time subsequent to their respective dates. Such selected financial data should be read together with the relevant notes to the Financial Statements, where applicable. Any statement contained in the above-mentioned financial statements shall be deemed to be modified or superseded for the purposes of this Offer Information Statement to the extent that a subsequent statement contained herein modifies or supersedes that statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to form a part of this Offer Information Statement. The Financial Statements are available on the website of Ascott REIT at Ghttp://www.ascottreit.comH and are also available for inspection during normal business hours at the registered office of the Manager at 8 Shenton Way, #13-01, Singapore 068811, from the date of this Offer Information Statement up to and including the date falling six months after the date of this Offer Information Statement(1). Prospective investors are advised to obtain and read the documents incorporated by reference herein before making their investment decision in relation to the New Units. Any discrepancies in the tables included herein between the listed amounts and totals thereof are due to rounding. The value of 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. Neither the Manager nor any of its affiliates guarantees the performance of Ascott REITor the repayment of capital from Ascott REIT, or any particular rate of return. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. 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. The past performance of Ascott REIT is not necessarily indicative of the future performance of Ascott REIT. This Offer Information Statement 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. The Manager, the Trustee and the Joint Lead Managers, Bookrunners and Underwriters do not represent or warrant that the actual future performance, outcomes or results of Ascott REIT will be

(1) Prior appointment will be appreciated.

iv as discussed in those statements. 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 costs), property expenses and governmental and public policy changes. A few risk factors which are unlikely to be known or anticipated by the general investor and which could materially affect profits are set out under this Offer Information Statement. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager’s current view of future events. The major assumptions are certain expected levels of property rental income and property expenses over the relevant periods, which are considered by the Manager to be appropriate and reasonable as at the date of this Offer Information Statement. The forecast financial performance of Ascott REIT is not guaranteed and there is no certainty that it can be achieved. Investors should read the whole of this Offer Information Statement for details of the forecasts and consider the assumptions used and make their own assessment of the future performance of Ascott REIT before deciding whether to accept or purchase the New Units. Investors should also make their own independent investigations of any bases and assumptions upon which financial projections, if any, are made or based, and carefully consider this Offer Information Statement in the light of their personal circumstances. If you are in any doubt as to the action you should take, you should consult your legal, financial, tax or other professional adviser.

v FORWARD LOOKING STATEMENTS Certain statements in this Offer Information Statement constitute “forward-looking statements”. This Offer Information Statement also contains forward-looking financial information in “Profit Forecast and Profit Projection”. All statements other than statements of historical facts included in this Offer Information Statement, including those regarding Ascott REIT’s financial position and results, business strategies, plans and objectives of management for future operations are forward-looking statements. These forward- looking statements involve known and unknown risks, uncertainties and other factors that may cause Ascott REIT’s actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements are based on numerous assumptions regarding Ascott REIT’s present and future business strategies and the environment in which Ascott REITwill operate in the future. Forward-looking statements involve inherent risks and uncertainties. The forward-looking statements included in this Offer Information Statement reflect Ascott REIT’s current views with respect to future events and are not a guarantee of future performance. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. These factors include, but are not limited to, the following: • general global, regional and local political, social and economic conditions; • regulatory developments and changes in the industry in which we operate; • the general economic condition of, and changes in, the economy and financial markets in Asia, Europe and elsewhere; • changes in Ascott REIT’s need for capital and the availability of financing and capital to fund these needs; • whether Ascott REIT can successfully execute its business strategies and carry out its growth plans; • competition in the real estate industry (including serviced apartments) in Asia, Europe and elsewhere; • Ascott REIT’s ability to anticipate and respond to trends concerning serviced residences or rental housing properties; • changes in government regulations, including tax laws, licensing, foreign exchange rates and capital controls; • war or acts of international or domestic terrorism; • occurrences of catastrophic events, natural disasters and acts of God that affect Ascott REIT’s properties; • changes in Ascott REIT’s senior management team or loss of key employees; • changes in interest rates or inflation rates; • changes in the value of certain currencies that are used in Ascott REIT’s business, including the Singapore dollar, the Renminbi, the US Dollar, the Euro, the Vietnam Dong, the Philippines Peso, the Japanese Yen, the Pound Sterling, the Australian Dollar and the Indonesia Rupiah; • other factors beyond Ascott REIT’s control; and • any other matters not yet known to Ascott REIT. Additional factors that could cause Ascott REIT’s actual results, performance or achievements to differ materially include, but are not limited to, those discussed under “Risk Factors”, “Profit Forecast and Profit Projection” and the “Independent Serviced Residences Market Overview Report by Jones Lang LaSalle Hotels and Jones Lang LaSalle Property Consultants Pte Ltd”. These forward-looking statements speak only as of the date of this Offer Information Statement. Although the Manager believes that the expectations reflected in the forward-looking statements are reasonable, the Manager cannot guarantee future results, levels of activity, performance or achievements. The Manager does not intend to update any of the forward-looking statements after the date of this Offer Information Statement to conform those statements to actual results, subject to compliance with all applicable laws including the Securities and Futures Act and/or the rules of the SGX-ST.

vi MARKET AND INDUSTRY INFORMATION This Offer Information Statement includes market and industry data and forecasts that have been obtained from internal surveys, reports and studies, where appropriate, as well as market research, publicly available information and industry publications. Industry publications, surveys and forecasts generally state that the information they contain has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of such included information. While the Manager has taken reasonable steps to ensure that the information is extracted accurately and in its proper context, the Manager has not independently verified any of the data from third party sources or ascertained the underlying economic assumptions relied upon therein.

CERTAIN DEFINED TERMS AND CONVENTIONS Ascott REIT will publish its financial statements in Singapore dollar. In this Offer Information Statement, references to “$”, “Singapore dollar” or “Singapore cent” are to the lawful currency of the Republic of Singapore, references to “US$”, “US dollar” or “US cent” are to the lawful currency of the United States of America, references to “AUD” are to the lawful currency of Australia, references to “Vietnam Dong” are to the lawful currency of Vietnam, references to “Peso” are to the lawful currency of The Philippines, references to “Renminbi” or “RMB” are to the lawful currency of the People’s Republic of China, references to ‘¥,” “Japanese Yen” or “Yen” are to the lawful currency of Japan, references to “e”or “Euro” are to the lawful currency of the European Union and references to “£” or “Pound Sterling” or “GBP” are to the lawful currency of Great Britain. All references to dates and times are to Singapore dates and times. Capitalised terms used in this Offer Information Statement shall have the meanings set out in the Glossary on pages xii to xxii of this Offer Information Statement. References to the acquisition of the Target Properties by Ascott REIT in this Offer Information Statement shall, where the context so requires, include the acquisition of shares in the Property Holding Companies from the Vendor Companies. References to “ownership” include instances where the property is held pursuant to a long-term lease. The Singapore Target Property, the Vietnam Target Property and Ascott Beijing are properties which are held under a leasehold estate. References to “an interest” in any of the TargetProperties shall include, (a) with respect to the Relevant France TargetProperties, an equity interest in the relevant Finance Lessee and (b) with respect to the Singapore Target Property, the Vietnam Target Property and Ascott Beijing, the leasehold interest in such property. References to property values refer to the average of the two appraised values based on the appraisals of (a) Savills and (b) HVS. References to the France Target Properties in this Offer Information Statement shall include the shares in the Property Holding Companies (the “Finance Lessees”) which lease certain of the France Target Properties, namely, Citadines Montpellier Antigone, Citadines Marseille Castellane, Citadines Paris Austerlitz, Citadines Paris Voltaire République, Citadines Paris Maine-Montparnasse, Citadines Cannes Carnot and Citadines Paris Didot Alésia (the “Relevant France Target Properties”) from two third-party finance companies (the “Finance Companies”) for a period of between 15 to 20 years in consideration for the payment of rental by the Finance Lessees to the Finance Companies. Under each of these finance lease arrangements (the “Finance Lease Arrangements”), the Finance Lessee has a contractual right to use the premises and a promise of sale at the expiry of the finance lease. The Finance Lessee may acquire legal title to the Relevant France Target Property by exercising its option to purchase the property (a) prior to the expiry of the finance lease by, among other things, providing six months’ notice to the Finance Company and making pre-payment for the outstanding rentals due to the Finance Company, or (b) at the expiry of the finance lease by making a nominal payment to the Finance Company. Upon the exercise of the option by serving the six months’ notice, the legal title will, in accordance with the Finance Lease Arrangements, be delivered to the Finance Lessees by the end of the financial year in which notice is given or the next financial year (if the period between the date of notice to the year end is less than six months). References to interest in the Target Properties shall include the lease by the Finance Lessees of the Relevant Target Properties from the Finance Companies under the Finance Lease Arrangements. The forecast and projected yields and yield growth are calculated based on an illustrative market price range of $1.07 to $1.23 per Unit. Such yields will vary accordingly for investors who purchase Units in the

vii secondary market at a market price different from the illustrative market price range of $1.07 to $1.23 per Unit. Under no circumstances should the inclusion of such an illustrative market price range be regarded as a representation, warranty or prediction with respect to the market price of the Units upon the listings of the New Units on the SGX-ST. Any discrepancies in the tables included herein between the listed amounts and totals thereof are due to rounding. Where applicable, figures and percentages are rounded off to one decimal place. This Offer Information Statement contains conversions of Euro, Pound Sterling, US$ and Renminbi amounts into Singapore dollar. Unless otherwise indicated, Euro, Pound Sterling, US$ and Renminbi amounts in this Offer Information Statement have been translated into Singapore dollar, based on the exchange rate of e1.00 = $1.75, £1.00 = $2.07, US$1.00 = $1.38 and RMB1.00 = $0.205 respectively. For the avoidance of doubt, the Unaudited Pro Forma Consolidated Financial Information presented in Appendix C and elsewhere in this Offer Information Statement is derived based on the foreign currency exchange rates set forth in Appendix C and under the section titled “Pro Forma Financial Effects of the Transactions” in this Offer Information Statement, which are different from the foreign currency exchange rates set forth in this paragraph. None of the foreign currency conversion rates used to present or derive information in this Offer Information Statement should be construed as representations that Euro, Pound Sterling, US$ and Renminbi amounts have been, would have been or could be converted into Singapore dollar at those rates or any other rate, at any particular rate or at all.

viii ELIGIBILITY OF UNITHOLDERS TO PARTICIPATE IN THE PREFERENTIAL OFFERING

Singapore Registered Unitholders Singapore Registered Unitholders are Unitholders with Units standing to the credit of their Securities Accounts and whose registered addresses with CDP are in Singapore as at the Preferential Offering Books Closure Date or who have, at least three Market Days prior to the Preferential Offering Books Closure Date, provided CDP with addresses in Singapore for the service of notices and documents and such Unitholders who the Manager, on behalf of Ascott REIT, and in consultation with the Joint Lead Managers, Bookrunners and Underwriters, determines, may be offered New Units under the Preferential Offering without breaching applicable securities laws (the “Singapore Registered Unitholders”). Singapore Registered Unitholders will receive provisional allotments under the Preferential Offering on the basis of their unitholdings as at the Preferential Offering Books Closure Date and are entitled to participate in the Preferential Offering and to receive this Offer Information Statement (including the ARE) at their respective Singapore addresses. Singapore Registered Unitholders who do not receive the ARE may obtain copies of the ARE and this Offer Information Statement from CDP or the Unit Registrar for the period up to 30 September 2010. Singapore Registered Unitholders are at liberty to, accept in part or in full, or decline and if applicable, to apply for Excess New Units (during the period from 24 September 2010 to 30 September 2010) their provisional allotments of Preferential Offering New Units. Singapore Registered Unitholders who have subscribed for or purchased Units under the CPFIS and/or the SRS can only accept their provisional allotments and if applicable, apply for Excess New Units, by instructing the relevant banks in which they hold their CPFIS accounts and/or SRS accounts to do so on their behalf.

Ineligible Unitholders The provisional allotments will not be offered to Unitholders other than Singapore Registered Unitholders (the “Ineligible Unitholders”) and no purported acceptance thereof or application therefor by Ineligible Unitholders will be valid. This Offer Information Statement and its accompanying documents relating to the Equity Fund Raising have not been and will not be lodged, registered or filed in any jurisdiction other than Singapore. The distribution of this Offer Information Statement and its accompanying documents relating to the Equity Fund Raising may be prohibited or restricted (either absolutely or subject to various relevant securities requirements, whether legal or administrative, being complied with) in certain jurisdictions under the relevant securities laws of those jurisdictions. For practical reasons and in order to avoid any violation of the securities legislation applicable in countries other than in Singapore, the Preferential Offering is only made in Singapore and this Offer Information Statement and its accompanying documents have not been and will not be despatched to Ineligible Unitholders. The Manager reserves the right, but shall not be obliged to, treat as invalid any application or purported application, or decline to register such application or purported application which (a) appears to the Manager or its agents to have been executed in any jurisdiction outside Singapore or which the Manager believes may violate any applicable legislation of such jurisdiction, or (b) purports to exclude any deemed representation or warranty. The Manager further reserves the right to reject any acceptances of the Preferential Offering New Units where it believes, or has reason to believe, that such acceptances may violate the applicable legislation of any jurisdiction. Holders of the New Units issued under the Private Placement The Private Placement New Units (as defined herein) are not entitled to participate in the Preferential Offering.

ix Notwithstanding the above, Unitholders and any other person having possession of this Offer Information Statement are advised to inform themselves of and to observe all legal requirements applicable thereto. No person in any territory outside Singapore receiving this Offer Information Statement may treat the same as an offer, invitation or solicitation to subscribe for any Preferential Offering New Units unless such offer, invitation or solicitation could lawfully be made without violating any regulation or legal requirements in such territory. In particular, the New Units have not been and will not be registered under the US Securities Act. The New Units may not be offered or sold in the United States (as defined under Regulation S).

x IMPORTANT NOTICE TO (A) CPFIS INVESTORS, (B) SRS INVESTORS AND (C) INVESTORS WHO HOLD UNITS THROUGH A FINANCE COMPANY AND/OR DEPOSITORY AGENT Unitholders who have subscribed for or purchased Units under the CPFIS and/or the SRS or through a finance company and/or Depository Agent can only accept their Preferential Offering New Units and if applicable, apply for Excess New Units, by instructing the relevant banks, finance company and/or Depository Agent in which they hold their CPFIS accounts and/or SRS accounts to do so on their behalf. ANY APPLICATION MADE DIRECTLY BY THE ABOVE-MENTIONED UNITHOLDERS TO CDP OR THROUGH ATMS WILL BE REJECTED. The above-mentioned Unitholders, where applicable, will receive notification letter(s) from their respective approved bank, finance company and/or Depository Agent and should refer to such notification letter(s) for details of the last date and time to submit acceptances to their respective approved bank, finance company and/or Depository Agent.

(A) Use of CPF Unitholders participating in the CPFIS — Ordinary Account must use, subject to applicable CPF rules and regulations, monies standing to the credit of their respective CPF Investment Accounts to pay for the acceptance of their Preferential Offering New Units and if applicable, their application for Excess New Units, if they have previously bought their Units using CPF. Such Unitholders who wish to accept their Preferential Offering New Units and if applicable, apply for Excess New Units, using CPF funds must have sufficient funds in their CPF Investment Accounts and must instruct their respective approved banks, where such Unitholders hold their CPF Investment Accounts, to accept their Preferential Offering New Units and if applicable, to apply for Excess New Units, on their behalf in accordance with this Offer Information Statement. Such Unitholders who have insufficient funds in their CPF Investment Accounts may deposit cash into their CPF Investment Accounts with their approved banks to enable them to accept their Preferential Offering New Units and if applicable, apply for Excess New Units.

(B) Use of SRS Funds Unitholders with SRS accounts must use, subject to applicable SRS rules and regulations, monies standing to the credit of their respective SRS accounts to pay for the acceptance of their Preferential Offering New Units and if applicable, their application for Excess New Units. Such Unitholders who wish to accept their Preferential Offering New Units and if applicable, apply for Excess New Units, using SRS monies, must instruct the relevant banks in which they hold their SRS accounts to accept their Preferential Offering New Units and if applicable, apply for Excess New Units, on their behalf in accordance with this Offer Information Statement. Such Unitholders who have insufficient funds in their SRS accounts may, subject to the SRS contribution cap, deposit cash into their SRS accounts with their approved banks to enable them to subscribe for their Preferential Offering New Units and if applicable, to apply for Excess New Units.

(C) Holdings through Finance Company and/or Depository Agent Unitholders who hold units through a finance company and/or Depository Agent must instruct the relevant finance company and/or Depository Agent to accept their Preferential Offering New Units and if applicable, apply for Excess New Units, on their behalf in accordance with this Offer Information Statement.

xi GLOSSARY In this Offer Information Statement, the following definitions apply throughout unless otherwise stated: 1H2009 : The six month period ended 30 June 2009 1H2010 : The six month period ended 30 June 2010 1H2010 Unaudited Consolidated : The unaudited consolidated financial statements of Ascott Financial Statements REIT for the six month period ended 30 June 2010 2007 Audited Consolidated : The audited consolidated financial statements of Ascott REIT Financial Statements for the financial year ended 31 December 2007 2008 Audited Consolidated : The audited consolidated financial statements of Ascott REIT Financial Statements for the financial year ended 31 December 2008 2009 Audited Consolidated : The audited consolidated financial statements of Ascott REIT Financial Statements for the financial year ended 31 December 2009 Advanced Distribution : The distribution of the Distributable Income for the period from 1 July 2010 up to the day immediately prior to the date on which the Private Placement New Units are issued under the Equity Fund Raising AIM : Ascott International Management (2001) Pte Ltd, a wholly- owned subsidiary of TAL AIM Group : AIM and its affiliates Aggregate Leverage : The ratio of the value of borrowings and deferred payments (if any) to the value of the Deposited Property Apartment Unit : An available apartment unit for lease or licence, as the case may be, in the Existing Portfolio or Target Properties Apartment Rental Income : Income from the rental or licensing of Apartment Units under Ascott REIT’s portfolio including rental income under the Master Leases ARE : The acceptance form for Preferential Offering New Units and application form for Excess New Units to be issued to Singapore Registered Unitholders in respect of their provisional allotments under the Preferential Offering Applicant : A Singapore Registered Unitholder who is accepting his provisional allotment of Preferential Offering New Units and if applicable, applying for the Excess New Units Ascott REIT : Ascott Residence Trust, a unit trust constituted on 19 January 2006 under the laws of the Republic of Singapore Asia Target Acquisitions : The Singapore Target Acquisition and the Vietnam Target Acquisition Asia Target Properties : The Singapore Target Property and the Vietnam Target Property Ascott Beijing Sale and Purchase : The conditional sale and purchase agreements entered into Agreement between Ascott Investments Pte. Ltd. and the Trustee in relation to the Divestment Ascott Europe : The Ascott (Europe) Pte. Ltd., a wholly-owned subsidiary of TAL Ascott Group : TAL and its subsidiaries Ascott Jersey : Ascott (Jersey) Limited, a wholly-owned subsidiary of TAL Ascott Netherlands : The Ascott (Europe) NV, a wholly-owned subsidiary of TAL ATM : Automated teller machine

xii Average Daily Rates : Apartment Rental Income divided by the number of paid occupied nights during the applicable period Belgium Target Acquisitions : The acquisition of 100.0% effective interest in the Belgium Target Properties Belgium Target Properties : Citadines Bruxelles Sainte-Catherine and Citadines Bruxelles Toison d’Or Business Day : Any day (other than a Saturday, Sunday or gazetted public holiday) on which commercial banks are generally open for business in Singapore and the SGX-ST is open for trading CapitaLand : CapitaLand Limited CapitaLand Group : TAL, Somerset Capital Pte Ltd and the Manager CapitaLand Group Placement : The placement of Private Placement New Units to the CapitaLand Group as part of the Equity Fund Raising Capital Distributions : Capital component of the distributions made by Ascott REIT out of Unitholders’ contributions and representing such part of the income derived from the Europe Target Properties and Vietnam Target Property that is not/cannot be repatriated back to Singapore in the form of dividends CDP : The Central Depository (Pte) Limited Circular : The circular to Unitholders dated 20 August 2010 Citadines Holborn : Citadines Holborn CI Limited, a wholly-owned subsidiary of TAL Controlling Unitholder : A person who: (a) holds directly or indirectly, 15.0% or more of the nominal amount of Units; or (b) in fact exercises control over Ascott REIT, as defined in the Listing Manual Debt Financing : The existing debt facilities available to Ascott REIT including any loan facility and comprising the $1.0 billion multi-currency medium term note programme of Ascott REIT launched in 2009 Deed of Guarantee : The guarantee given by TAL to the Trustee on 20 August 2010, pursuant to which TAL will guarantee the due performance of Ascott Europe’s obligations under the Sale and Purchase Agreement in relation to the Europe Target Acquisitions. Deposited Property : All the assets of Ascott REIT for the time being held or deemed to be held upon the trusts of the Trust Deed Directors : The directors of the Manager Distributable Income : Comprises Ascott REIT’s Taxable Income and Net Overseas Income Divestment : The divestment by Ascott REIT of a 100.0% interest in Hemliner Pte Ltd, a Singapore incorporated company, which owns indirectly a 100.0% interest in Ascott Beijing to Ascott Investments Pte. Ltd. DPU : Distribution per Unit EBITDA : Earnings before net interest expenses, tax, depreciation and amortisation EBITDA Yield : EBITDA before deduction of the Manager’s management fees divided by property value

xiii EGM : The extraordinary general meeting of Unitholders held on 9 September 2010 Electronic Acceptances : Acceptance of the Preferential Offering New Units and if applicable, application for Excess New Units under the Preferential Offering made through an ATM of a Participating Bank in accordance with the terms and conditions of this Offer Information Statement Electronic Acceptance Steps : The procedures for Electronic Acceptances of Preferential Offering New Units at the ATMs of the Participating Banks as set out on the ATM screens of the Participating Banks Enlarged Ascott REIT Group : Ascott REIT, after taking into consideration the completion of the Target Acquisitions and the Divestment Enlarged Portfolio : The Existing Portfolio and the Target Properties, excluding Ascott Beijing Equity Fund Raising : The issue of New Units under the Preferential Offering and the Private Placement to international and other investors by the Joint Lead Managers, Bookrunners and Underwriters so as to raise gross proceeds of approximately $560.6 million (based on an illustrative issue price of $1.15 per New Unit) which is underwritten by Credit Suisse (Singapore) Limited and DBS Bank Ltd. Europe Target Acquisitions : The France Target Acquisitions, the UK Target Acquisitions, the Belgium Target Acquisitions, the Germany Target Acquisitions and the Spain Target Acquisition Europe Target Properties : The France Target Properties, the UK Target Properties, the Belgium Target Properties, the Germany Target Properties and the Spain Target Property Excess New Units : New Units represented by the provisional allotments of (i) Singapore Registered Unitholders who decline or do not accept ,whether in full or in part, their provisional allotment of New Units under the Preferential Offering (during the period from 24 September 2010 to 30 September 2010) and (ii) Ineligible Unitholders Existing Portfolio : Somerset Grand Cairnhill, Singapore; Somerset Liang Court Property, Singapore; Ascott Beijing; Somerset Grand Fortune Garden Property, Beijing; Somerset Xu Hui, Shanghai; Somerset Olympic Tower Property, Tianjin; Somerset Azabu East, Tokyo; Somerset Roppongi, Tokyo; Asyl Court Nakano Sakaue, Tokyo; Gala Hachimanyama I, Tokyo; Gala Hachimanyama II, Tokyo; Joy City Koishikawa Shokubutsuen, Tokyo; Joy City Kuramae, Tokyo; Zesty Akebonobashi, Tokyo; Zesty Gotokuji, Tokyo; Zesty Higashi Shinjuku, Tokyo; Zesty Kagurazaka I, Tokyo; Zesty Kagurazaka II, Tokyo; Zesty Kasugacho, Tokyo; Zesty Koishikawa, Tokyo; Zesty Komazawa Daigaku II, Tokyo; Zesty Nishi Shinjuku III, Tokyo; Zesty Sakura Shinmachi, Tokyo; Zesty Shin Ekoda, Tokyo; Zesty Shoin Jinja, Tokyo; Zesty Shoin Jinja II, Tokyo; Ascott Jakarta; Somerset Grand Citra, Jakarta; Country Woods, Jakarta; Ascott Makati; Somerset Millenium, Makati; Somerset Salcedo Property, Makati; Somerset Grand Hanoi; Somerset West Lake, Hanoi; Somerset Chancellor Court, Ho Chi Minh City; Somerset Ho Chi Minh City; Somerset Gordon Heights, Melbourne and Somerset St Georges Terrace, Perth Existing Units : The outstanding Units in issue immediately prior to the issuance of the Private Placement New Units

xiv Extraordinary Resolution : A resolution proposed and passed as such by a majority consisting of 75.0% or more of the total number of votes cast for and against such resolution at a meeting of Unitholders duly convened under the provisions of the Trust Deed Finance Companies : The two third-party finance companies, namely, Genefim SA and Antin Bail, which are related corporations of Société Générale and BNP Paribas respectively, that lease the Relevant France Target Properties to the Finance Lessees Finance Lease Arrangements : The arrangements entered into between the Finance Companies and the Finance Lessees pursuant to which the Finance Lessees have been granted a contractual right to use the Relevant France Target Properties and a promise of sale at the expiry of the finance leases Finance Lessees : The Property Holding Companies that lease the Relevant France Target Properties from the Finance Companies Forecast Period 2010 : The Manager’s forecast for the three-month period ending 31 December 2010 included in Appendix E and subject to the qualifications, assumptions and limitations set forth therein France Target Acquisitions : The acquisition of 100.0% effective interest in the France Target Properties, which for this purpose, shall include the Relevant France Target Properties that are in existing Finance Lease Arrangements with the third-party Finance Companies France Target Properties : Citadines Lille Centre; Citadines Grenoble; Citadines Paris Louvre; Citadines Paris Trocadéro; Citadines Lyon Presqu’île; Citadines Paris Place d’Italie; Citadines Paris Montmartre; Citadines Paris Tour Eiffel; Citadines Montpellier Antigone; Citadines Marseille Castellane; Citadines Paris Austerlitz; Citadines Paris Voltaire République; Citadines Paris Maine-Montparnasse; Citadines Marseille Prado Chanot, Citadines Paris Les Halles; Citadines Paris Didot Alésia and Citadines Cannes Carnot FRS : Financial Reporting Standards FY2007 : The financial year ended 31 December 2007 FY2008 : The financial year ended 31 December 2008 FY2009 : The financial year ended 31 December 2009 Germany Target Acquisitions : The acquisition of 100.0% effective interest in Citadines Berlin Kurfu¨rstendamm and 99.0% effective interest in Citadines Munich Arnulfpark Germany Target Properties : Citadines Berlin Kurfu¨rstendamm and Citadines Munich Arnulfpark GFA : Gross floor area Gross Profit : Has the meaning ascribed to it in the Trust Deed Gross Rent : Comprises net rental income (after rent rebates and provisions for rent free periods), service charge (which is a contribution paid by tenant(s) towards covering the operating maintenance expenses of the relevant property) and licence fees (where applicable) Gross Revenue : Consists of (i) Gross Rent and (ii) other income earned from the relevant property or properties Group : Ascott REIT and its subsidiaries

xv HVS : HVS International Income Tax Act : Income Tax Act, Chapter 134 of Singapore Independent Accountants : KPMG LLP Independent Directors : Messrs Lim Jit Poh, Ku Moon Lun, Chandra Das S/O Rajagopal Sitaram and Giam Chin Toon @ Jeremy Giam Independent Property Consultant : Jones Lang LaSalle Hotels/Jones Lang LaSalle Property Consultants Pte Ltd Independent Valuers : Savills and HVS Ineligible Unitholders : Unitholders other than Singapore Registered Unitholders Interested Party : Has the meaning ascribed to it in the Property Funds Appendix Interested Party Transaction : Has the meaning ascribed to it in the Property Funds Appendix Interested Person : Has the meaning ascribed to it in the Listing Manual Interested Person Transaction : Has the meaning ascribed to it in the Listing Manual IRAS : Inland Revenue Authority of Singapore Joint Lead Managers, Bookrunners : Credit Suisse (Singapore) Limited and DBS Bank Ltd. and Underwriters Jones Lang LaSalle : Jones Lang LaSalle Hotels and Jones Lang LaSalle Property Consultants Pte Ltd Latest Practicable Date : 9 September 2010 being the latest practicable date prior to the printing of this Offer Information Statement Listing Manual : The Listing Manual of the SGX-ST Lock-up Restrictions : The lock-up restrictions that TAL has undertaken to the Joint Lead Managers, Bookrunners and Underwriters, as described in paragraph titled “Equity Fund Raising — Moratorium” in this Offer Information Statement Managed Properties : The Target Properties that are not under the Master Leases Manager : Ascott Residence Trust Management Limited, as manager of Ascott REIT Market Day : A day on which the SGX-ST is open for trading in securities Master Leases : The 17 existing master lease agreements between the relevant Property Holding Companies and Citadines SA in relation to the France Target Properties and the two existing master lease agreements between the relevant Property Holding Companies and Citadines Betriebsgesellschaft mbH in relation to the Germany Target Properties Master Lessees : Citadines SA in relation to the France Target Properties and Citadines Betriebsgesellschaft mbH in relation to the Germany Target Properties, as the case may be Master Lessors : The Property Holding Companies that lease the relevant Target Properties to the Master Lessees MAS : Monetary Authority of Singapore Moratorium Units : Units held by TAL, Somerset Capital Pte Ltd and the Manager as at 20 August 2010 and any New Units subscribed for by them in the Equity Fund Raising

xvi Moratorium Period : The period from 20 August 2010 until the date falling 180 days from the date the Preferential Offering New Units are listed on the SGX-ST during which the Lock-up Restrictions apply n.a. : Not applicable NAV : Net asset value Net Overseas Income : The consolidated net profits (excluding any gains from the sale of property or shares, as the case may be) after applicable taxes and adjustment for non-cash items, for example depreciation, derived by Ascott REIT from its properties located outside Singapore Net Purchase Consideration : $814.2 million for the acquisition of the Target Properties New Units : The Private Placement New Units and/or the Preferential Offering New Units, as the case may be Non-Independent Non-Executive : Messrs Liew Mun Leong, Lim Ming Yan, Jennie Chua and Wen Directors Khai Meng NOP : In relation to the SR Management Agreements, excluding those for the Asia Target Properties, net operating profit per annum that the SR Management Companies have warranted would be achieved NTA : Net tangible assets Ordinary Resolution : A resolution proposed and passed as such by a majority consisting of more than 50.0% of the total number of votes cast for and against such resolution at a meeting of Unitholders convened in accordance with the provisions of the Trust Deed Pan-Asian Region : In the context of this Offer Information Statement, it refers to all countries in Asia and the Asia-Pacific region Participating Banks : DBS Bank Ltd. (including POSB), Oversea-Chinese Banking Corporation Limited and United Overseas Bank Limited and its subsidiary, Far Eastern Bank Limited PRC or China : The People’s Republic of China, excluding Hong Kong Special Administrative Region and Macau Special Administrative Region for the purposes of this Offer Information Statement Pre-Existing Master Leases and : The Master Leases and SR Management Agreements which SR Management Agreements the Property Holding Companies have entered into prior to the date of the Sale and Purchase Agreements Preferential Offering : A non-renounceable preferential offering of one Preferential Offering New Unit for every 10 Existing Units held on the Preferential Offering Books Closure Date (fractions of a unit to be disregarded) to Singapore Registered Unitholders as part of the Equity Fund Raising Preferential Offering Books Closure : Date on which the Transfer Books and Register of Unitholders will Date be closed to determine the provisional allotments of Singapore Registered Unitholders under the Preferential Offering Preferential Offering Issue Price : The price per New Unit to be issued under the Preferential Offering, which will be between $1.07 to $1.11 Preferential Offering New Units : The new Units to be issued under the Preferential Offering Price Determination Date : 14 September 2010, being the date on which the Private Placement Issue Price and the Preferential Offering Issue Price are to be determined

xvii Private Placement : The private placement of New Units by the Joint Lead Managers, Bookrunners and Underwriters to institutional and other investors as part of the Equity Fund Raising Private Placement Issue Price : The price per New Unit to be issued under the Private Placement, which will be between $1.07 to $1.13 Private Placement New Units : The new Units to be issued under the Private Placement Profit Forecast : The forecast consolidated statement of Ascott REIT’s net income and distribution for the three months ending 31 December 2010 and the accompanying assumptions and sensitivity analysis set out in Appendix E of this Offer Information Statement Profit Projection : The projected consolidated statement of Ascott REIT’s net income and distribution for the financial year ending 31 December 2011 and the accompanying assumptions and sensitivity analysis set out in Appendix E of this Offer Information Statement Projection Year 2011 : The Manager’s projections for the financial year ending 31 December 2011 included in Appendix E of this Offer Information Statement and subject to the qualifications, assumptions and limitations set forth therein Property Funds Appendix : The guidelines for real estate investment trusts issued by the MAS as Appendix 2 of Code on Collective Investment Schemes issued by the MAS Property Holding Companies : Somerset Hoa Binh Joint Venture Company Limited, Résidence des Deux Gares, Place de Metz-Grenoble, S.C.I. Citadines Paris Louvre, Reo Saint-Didier, Société Civile Immobiliére Résidence Lyon, Société Civile Immobiliére Résidence Italie, S.N.C. 14bis/16/18 Avenue Rachel – 75018 Paris, Société Civile Immobiliére Résidence Grenelle, SCI Montpellier Antigone, S.C.I. SODI (formerly known as S.C.I. Didot), S.C.I. Austerlitz, S.C.I. République, S.C.I. Montparnasse, S.C.I. Marseille, S.C.I. Cannes Carnot, Oriville, FBM London Limited, Citagrep Limited, Citadines Holborn CI Limited, FBM Belgique, Immobiliere Toisor SA, Citador Olivaer Platz GmbH & Co. KG Citadines Munich Arnulfpark GmbH & Co. KG and Eurimeg Espana, S.A. and “Property Holding Company” means any one of them Property Values : The aggregate of the values of Real Estate held directly by Ascott REIT and where Real Estate is held indirectly by Ascott REIT through special purpose vehicles, the values of the underlying Real Estate held by such special purpose vehicles pro-rated to the effective interest of Ascott REIT’s respective shareholdings in such special purpose vehicles Qualifying Unitholders : Unitholders who are tax resident, Singapore incorporated companies, bodies of persons (other than companies or partnerships) registered or constituted in Singapore (for example, town councils, statutory boards, registered charities, registered cooperative societies, registered trade unions, management corporations, clubs and trade and industry associations) and Singapore branches of foreign companies which have presented a letter of approval from the IRAS granting a waiver from tax deduction at source in respect of distributions from Ascott REIT

xviii Real Estate : Any land, and any interest, option or other right in or over any land. For the purpose of this definition, “land” includes land of any tenure, whether or not held apart from the surface, and buildings or parts thereof (whether completed or otherwise and whether divided horizontally, vertically or in any other manner) and tenements and hereditaments, corporeal and incorporeal, and any estate or interest therein, and “Real Estate” includes shares and stocks in an unlisted company which is constituted to hold/own such real estate, such as a special purpose vehicle Relevant France Target Properties : Citadines Montpellier Antigone, Citadines Marseille Castellane, Citadines Paris Austerlitz, Citadines Paris Voltaire République, Citadines Paris Maine-Montparnasse, Citadines Cannes Carnot and Citadines Paris Didot Alésia REVPAU : Refers to revenue per available unit in the Existing Portfolio or Target Properties, determined by dividing Apartment Rental Income by the number of available nights in the applicable period ROFR : The right of first refusal agreement dated 20 January 2006 between the Trustee and TAL (formerly known as The Ascott Group Limited) Rounding Mechanism : Where a Singapore Registered Unitholder’s provisional allotment of New Units under the Preferential Offering is other than an integral multiple of 1,000 Units, the increase in the provisional allotment of Preferential Offering New Units to the Unitholder by such number which, when added to the Unitholder’s unitholding as at the Preferential Offering Books Closure Date, results in an integral multiple of 1,000 Sale and Purchase Agreements : The three separate conditional sale and purchase agreements entered into between (a) Citadines Singapore Mount Sophia Pte Ltd and the Trustee in relation to the Singapore Target Acquisition, (b) TAHL and the Trustee in relation to the Vietnam TargetAcquisition, (c) Ascott Europe and the Trustee in relation to the Europe Target Acquisitions Sale Consideration : $214.0 million for the divestment of Ascott Beijing Savills : Savills UK and Savills HK Savills HK : Savills Valuation and Professional Services Limited Savills UK : Savills Advisory Services Limited (formerly known as Savills Commercial Properties Limited) Scheduled Distribution : The next distribution originally scheduled to take place in respect of Ascott REIT’s Distributable Income for the period from 1 July 2010 to 31 December 2010 for the Existing Units SFA : Securities and Futures Act, Chapter 289 of Singapore SGX-ST : Singapore Exchange Securities Trading Limited Singapore Registered Unitholders : Unitholders as at the Preferential Offering Books Closure Date other than those whose registered addresses with CDP are outside Singapore, and who have not, at least three Market Days prior to the Preferential Offering Books Closure Date, provided CDP with addresses in Singapore for the service of notices and documents Singapore Target Acquisition : The acquisition of 100.0% effective interest in the Singapore Target Property

xix Singapore Target Property : Citadines Singapore Mount Sophia Property, being the strata lot number U2778V of Town Subdivision 19 at 8 Wilkie Road, #01-26 Singapore 228095 Spain Target Acquisition : The acquisition of 100.0% effective interest in the Spain Target Property Spain Target Property : Citadines Barcelona Ramblas SR Management Agreement : The agreements entered into between (a) AIM and Citadines Singapore Mount Sophia Pte Ltd in relation to the Singapore Target Property, (b) AIM and Somerset Hoa Binh Joint Venture Company Limited in relation to the Vietnam Target Property, (c) Soderetour UK Ltd and FBM London Limited and Citagrep Limited in relation to the UK Target Properties, (d) Citadines SA and FBM Belgique SPRL and Immobiliere Toisor in relation to the Belgium TargetProperties, (e) Aparthotel Citadines SA and Eurimeg Espana S.A. in relation to the Spain Target Property SR Management Companies : AIM, Soderetour UK Ltd, Citadines SA and Aparthotel Citadines SA and “SR Management Company” means any one of them SR Management Services : The provision of serviced residence management services by SR Management Companies Substantial Unitholder : A Unitholder with an interest in one or more Units constituting not less than 5.0% of all outstanding Units sq ft : Square feet sq m : Square metres TAHL : The Ascott Holdings Limited, a wholly-owned subsidiary of TAL TAL : The Ascott Limited, the sponsor and Controlling Unitholder of Ascott REIT TAL Undertaking : The deed of undertaking to be entered into on completion of the Europe Target Acquisitions pursuant to which TAL will provide an undertaking in favour of the Trustee to procure that: (i) in respect of Master Leases with an original term of nine years, namely the Master Leases in relation to Citadines Lille Centre, Citadines Grenoble, Citadines Paris Louvre, Citadines Paris Trocadéro, Citadines Lyon Presqu’île, Citadines Paris Place d’Italie, Citadines Paris Montmartre, Citadines Paris Tour Eiffel, Citadines Marseille Prado Chanot and Citadines Paris Les Halles, Citadines SA fulfils the full nine-year term of these Master Leases; and/or (ii) in respect of other Master Leases with an original term of 12 years, namely the Master Leases in relation to Citadines Paris Austerlitz, Citadines Paris Didot Alésia, Citadines Maine Montparnasse, Citadines Paris Voltaire République, Citadines Marseille Castellane, Citadines Montpellier Antigone and Citadines Cannes Carnot, Citadines SA will renew such Master Leases (expiring in 2011) and waive its option to terminate at the end of the first three-year period of the renewed Master Leases Target Acquisitions : The Singapore Target Acquisition, the Vietnam Target Acquisition, the France Target Acquisitions, the UK Target Acquisitions, the Belgium Target Acquisitions, the Germany Target Acquisitions and the Spain Target Acquisition Target Properties : The Singapore Target Property, the Vietnam Target Property, the France Target Properties, the UK Target Properties, the

xx Belgium Target Properties, the Germany Target Properties and the Spain Target Property Taxable Income : The consolidated net profit (excluding any gains from the sale of property or shares, as the case may be) after applicable taxes and adjustment for non-cash items, for example, depreciation, derived by Ascott REIT from its properties located in Singapore Tax-Exempt Income Distributions : Tax-exempt income component of the distributions made by Ascott REITout of the tax-exempt income derived in respect of the Europe Target Properties and Vietnam Target Property Tax Ruling : The tax ruling dated 16 November 2005 issued by the Inland Revenue of Singapore on the taxation of Ascott REIT and its Unitholders Transactions : The Target Acquisitions and Divestment Trust Deed : The trust deed dated 19 January 2006 entered into between the Trustee and the Manager constituting Ascott REIT, as amended and supplemented Trustee : DBS Trustee Limited, in its capacity as trustee of Ascott REIT UK : United Kingdom UK Target Acquisitions : The acquisition of 100.0% effective interest in the UK Target Properties UK Target Properties : Citadines London Barbican, Citadines London Trafalgar Square, Citadines London South Kensington and Citadines London Holborn-Covent Garden Undertaking : The undertaking given by TAL on 20 August 2010, pursuant to which, among others: (a) in relation to the Preferential Offering, it will, and it will procure that each of Somerset Capital Pte Ltd and the Manager will, accept in full its provisional allotment of Preferential Offering New Units at the Preferential Offering Issue Price; and (b) in relation to the Private Placement, it will procure the CapitaLand Group to subscribe, at the Private Placement Issue Price, for such number of the Private Placement New Units such that the total number of the Private Placement New Units subscribed for by the CapitaLand Group will be the difference between the total number of New Units which the CapitaLand Group would require to maintain its pre-Preferential Offering unitholding, in percentage terms and the total number of Preferential Offering New Units provisionally allotted and accepted by the CapitaLand Group. Unit : A unit representing an undivided interest in Ascott REIT Unitholder : The Depositor whose securities account with CDP is credited with Unit(s) US Securities Act : United States Securities Act of 1933, as amended US$ : United States dollar Vendor Companies : Citadines Singapore Mount Sophia Pte. Ltd., TAHL and Ascott Europe

xxi Vietnam Target Acquisition : The acquisition of a 90.0% effective interest in the Vietnam Target Property Vietnam Target Property : Somerset Hoa Binh, Hanoi $ and cent : Singapore dollar and cent respectively The terms “Depositor” and “Depository Register” shall have the meanings ascribed to them respectively in Section 130A of the Companies Act, Chapter 50 of Singapore. Words importing the singular shall, where applicable, include the plural and vice versa and words importing the masculine gender shall, where applicable, include the feminine and neuter genders. References to persons shall include corporations. Any reference in this Offer Information Statement to any enactment is a reference to that enactment for the time being amended or re-enacted. Any reference to a time of day in this Offer Information Statement shall be a reference to Singapore time unless otherwise stated. The exchange rates used in this Offer Information Statement are for reference only. No representation is made that any amounts could have been or could be converted into Singapore dollar amounts at any of the exchange rates used in this Offer Information Statement, at any other rate or at all. Any discrepancies in the tables, graphs and charts between the listed amounts and totals thereof are due to rounding. Where applicable, figures and percentages are rounded to one decimal place.

xxii CORPORATE INFORMATION Directors of Ascott Residence Mr Lim Jit Poh (Chairman and Independent Non-Executive Trust Management Limited (the Director) manager of Ascott REIT) Mr Liew Mun Leong (Deputy Chairman and Non-Independent Non-Executive Director) Mr Chong Kee Hiong (Chief Executive Officer and Executive Director) Mr Ku Moon Lun (Independent Non-Executive Director) Mr Chandra Das S/O Rajagopal Sitaram (Independent Non- Executive Director) Mr Giam Chin Toon @ Jeremy Giam (Independent Non- Executive Director) Mr Lim Ming Yan (Non-Independent Non-Executive Director) Ms Jennie Chua (Non-Independent Non-Executive Director) Mr Wen Khai Meng (Non-Independent Non-Executive Director) Registered Office of Ascott Residence 8 Shenton Way Trust Management Limited #13-01 Singapore 068811 Trustee of Ascott REIT DBS Trustee Limited (in its capacity as trustee of Ascott REIT) 6 Shenton Way #14-01 DBS Building Tower One Singapore 068809 Sole Financial Adviser and Sole Credit Suisse (Singapore) Limited Global Coordinator for the Equity 1 Raffles Link Raising #03/04-01 South Lobby Singapore 039393 Joint Lead Managers, Bookrunners Credit Suisse (Singapore) Limited and Underwriters for the Equity 1 Raffles Link Fund Raising #03/04-01 South Lobby Singapore 039393 DBS Bank Ltd. 6 Shenton Way DBS Building Tower One Singapore 068809 Legal Adviser for the Equity WongPartnership LLP Fund Raising and to the Manager One George Street #20-01 Singapore 049145 Legal Adviser to the Sole Financial Allen & Gledhill LLP Adviser and Sole Global Coordinator One Marina Boulevard and Joint Lead Managers, #28-00 Bookrunners and Underwriters for the Singapore 018989 Equity Fund Raising as to Singapore law Legal Adviser to the Sole Financial Skadden, Arps, Slate, Meagher & Flom LLP Adviser and Sole Global Coordinator 9 Temasek Boulevard, Suite #29-01 and Joint Lead Managers, Suntec Tower Two Bookrunners and Underwriters for the Singapore 038989 Equity Fund Raising as to United States federal securities law

xxiii Legal Adviser to the Trustee Shook Lin & Bok LLP 1 Robinson Road #18-00 AIA Tower Singapore 048542 Unit Registrar and Unit Transfer Office Boardroom Corporate & Advisory Services Pte. Ltd. 50 Raffles Place, #32-01 Singapore Land Tower Singapore 048623 Independent Accountants KPMG LLP 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 Independent Valuers Savills Advisory Services Limited (formerly known as Savills Commercial Properties Limited) (appointed by the Trustee) 20 Grosvenor Hill London W1K 3HQ United Kingdom Savills Valuation and Professional Services Limited (appointed by the Trustee) 23/F Two Exchange Square Central, Hong Kong HVS International (appointed by The Ascott Limited) Temasek Boulevard #23-01A Suntec Tower Four Singapore 038986 Independent Property Consultant Jones Lang LaSalle Hotels and Jones Lang LaSalle Property Consultants Pte Ltd #38-01 Republic Plaza 9 Raffles Place Singapore 048619

xxiv SUMMARY The following summary is qualified in its entirety by, and should be read in conjunction with, the full text of this Offer Information Statement. Meanings of defined terms may also be found in the Glossary on pages xii to xxii of this Offer Information Statement. Any discrepancies in the tables included herein between the listed amounts and totals thereof are due to rounding.

Overview of Ascott REIT Ascott REIT is the first Pan-Asian serviced residence real estate investment trust which has the objective of investing primarily in real estate and real estate-related assets which are income-producing and which are used or predominantly used as serviced residences or rental housing properties. Comprising an initial asset portfolio of 12 strategically located properties with 2,068 apartment units (the “Apartment Units”) in five countries in the Pan-Asian Region, Ascott REIT was listed on the SGX-ST in March 2006 with an asset size of about $856.0 million. As at 30 June 2010, Ascott REIT’s portfolio has expanded to $1.59 billion, comprising 38 properties with 3,644 Apartment Units in 11 cities across seven countries.

Overview of the EGM Resolutions The Manager has obtained the approval of Unitholders at the extraordinary general meeting held on 9 September 2010 (the “EGM”) in respect of: (a) the acquisition of interests in serviced residence properties in Singapore, Vietnam and Europe (the “Target Acquisitions”) and the divestment of interest in a serviced residence property in the People’s Republic of China (the “Divestment”, together with the Target Acquisitions, the “Transactions”); (b) the issue of New Units under the equity fund raising (the “Equity Fund Raising”); and (c) the placement of Private Placement New Units to the CapitaLand Group (as defined herein), a controlling unitholder of Ascott REIT, as part of the Equity Fund Raising (the “CapitaLand Group Placement”).

The Equity Fund Raising The Manager intends to issue 487,518,000 New Units (representing approximately 78.7% of the existing issued Units as at the Latest Practicable Date) at an issue price to be determined so as to raise gross proceeds of approximately $560.6 million (based on an illustrative issue price of $1.15 per New Unit) to partially fund the Target Acquisitions, associated costs and for working capital purposes. The Equity Fund Raising will comprise: (a) a non-renounceable preferential offering of 67,858,000 Preferential Offering New Units at the Preferential Offering Issue Price of between $1.07 and $1.11 per New Unit on the basis of one New Unit for every 10 existing Units (the “Existing Units”) held on the Preferential Offering Books Closure Date (fractions of a New Unit to be disregarded and taking into account the Rounding Mechanism) to Singapore Registered Unitholders (the “Preferential Offering”); and (b) a placement of 419,660,000 Private Placement New Units at the Private Placement Issue Price of between $1.07 and $1.13 per New Unit to institutional and other investors (the “Private Placement”). The Equity Fund Raising, save for such number of New Units to be subscribed by the CapitaLand Group pursuant to the Undertaking (as defined herein), is underwritten by the Joint Lead Managers, Bookrunners and Underwriters at a price which will result in an accretion based on the projected DPU (as defined herein) between the Enlarged Portfolio as compared to the Existing Portfolio for the financial year ending 31 December 2011 as set out in this Offer Information Statement and subject to the qualifications, assumptions and limitations set out herein.

1 The final Private Placement Issue Price and the Preferential Offering Issue Price will be determined by the Joint Lead Managers, Bookrunners and Underwriters, with the agreement of the Manager, within the respective ranges mentioned above, after a book-building process, and will be announced by the Manager thereafter. Such announcement will be made prior to the commencement of the Preferential Offering. As the Preferential Offering is to be made on a non-renounceable basis, the provisional allotment of Preferential Offering New Units cannot be renounced in favour of a third party or traded on the SGX-ST. (See the section titled “Equity Fund Raising” and the risk factors “The assumptions set forth in the Profit Forecast and Profit Projection are inherently uncertain and are subject to significant business, economic, financial, regulatory and competitive risks and uncertainties” and “The actual performance of Ascott REIT and the Enlarged Portfolio will differ from the forecasts and projections set forth in this document and such differences may be material” under the section titled “Risk Factors” in this Offer Information Statement for further details.)

Use of Proceeds of the Equity Fund Raising The Manager intends to utilise the net proceeds of the Equity Fund Raising to part fund the Target Acquisitions, associated costs of Debt Financing and general corporate and working capital purposes. For each dollar of the gross proceeds that will be raised from the Equity Fund Raising, the Manager intends to allocate the gross proceeds from the Equity Fund Raising in the following manner: (a) approximately 95.24 cents to part fund the Target Acquisitions; (b) approximately 1.61 cents to pay for the underwriting, management and selling commissions and financial advisory fees and related expenses payable to the Joint Lead Managers, Bookrunners and Underwriters; and (c) approximately 1.55 cents to pay for the professional and other fees and expenses expected to be incurred by Ascott REIT in connection with the Equity Fund Raising, with the balance of the proceeds amounting to approximately 1.60 cents to be utilised for associated costs of Debt Financing and other general corporate and working capital purposes. (See the section titled “Use of Proceeds” in this Offer Information Statement for further details.)

The Transactions The Manager believes that the Target Acquisitions, comprising the acquisition by Ascott REIT of interests in one serviced residence property each in Singapore and Vietnam and 26 in Europe, represent an attractive, yield accretive opportunity to expand Ascott REIT’s assets with a complementary portfolio of serviced residences in Asia and Europe. The Target Acquisitions also represent an attractive, rare and unique opportunity to acquire a sizeable portfolio of serviced residences with a total asset value of approximately $1.4 billion. The Manager expects that the Transactions will improve the DPU to Unitholders due to the yield accretive nature of the Transactions. Operating under the “Citadines” and “Somerset” brands, the Target Acquisitions would significantly expand Ascott REIT’s geographical scope and enhance the diversification of Ascott REIT’s portfolio across property and economic cycles. In the Manager’s view, the Target Acquisitions would increase Ascott REIT’s income stability through the addition of 19 properties which are subject to Master Leases and are expected to provide fixed rental income to Ascott REIT and seven properties which are on SR Management Agreements subject to a minimum guaranteed net operating profit (“NOP”) per annum. The Target Acquisitions would also provide Ascott REIT with exposure to stable and established serviced residence markets in global cities such as London and Paris whilst strengthening Ascott REIT’s presence in Asia Pacific.

2 The vendors of the Target Acquisitions (the “Vendor Companies”) are wholly-owned subsidiaries of The Ascott Limited (“TAL”), the sponsor and Controlling Unitholder of Ascott REIT. To fund the Target Acquisitions, Ascott REIT is proposing to dispose of its interest in Ascott Beijing to a wholly-owned subsidiary of TAL, undertake the Equity Fund Raising and incur additional borrowings. Ascott REIT is pursuing the Target Acquisitions as part of its growth strategy to expand its portfolio, and the Divestment to unlock value in Ascott Beijing which the Manager believes has reached the optimal stage in its life cycle to improve the yield of its portfolio. Completion of the Target Acquisitions and the Divestment is expected to increase Ascott REIT’s total asset value to $2.85 billion, with 65 properties, comprising 6,681 Apartment Units in 23 cities across 12 countries. In addition, the absolute size of Ascott REIT’s free float will be substantially increased following the Equity Fund Raising. (See the section titled “Information relating to the Transaction” in this Offer Information Statement for further details.)

3 INDICATIVE TIMETABLE Event Date and Time Price Determination Date : 14 September 2010

Last day of cum trading for Preferential Offering and : 16 September 2010 Advanced Distribution

First day of ex trading for Preferential Offering and : 17 September 2010 Advanced Distribution

Advanced Distribution Book Closure Date : 21 September 2010 at 5.00 p.m.

Preferential Offering Book Closure Date : 21 September 2010 at 5.00 p.m.

Expected date for issue of New Units under the Private : 22 September 2010 Placement (the “Private Placement New Units”)

Expected date for commencement of trading of Private : 22 September 2010 at 2.00 p.m. Placement New Units

Despatch of Offer Information Statement : 24 September 2010 (together with the ARE) to Singapore Registered Unitholders

Opening date and time for the Preferential : 24 September 2010 at 9.00 a.m. via Offering ARE

24 September 2010 at 9.00 a.m. via ATMs

Closing date and time for the Preferential : 30 September 2010 at 5.00 p.m. via Offering ARE

30 September 2010 at 9.30 p.m. via ATMs

Expected date for issue of New Units under the : 7 October 2010 after 5.00 p.m. Preferential Offering (the “Preferential Offering New Units”)

Expected date for commencement of trading of the : 8 October 2010 at 9.00 a.m. Preferential Offering New Units

The above timetable is indicative and subject to change. Any change to the indicative timetable will be announced by the Manager through SGXNET.

4 EQUITY FUND RAISING

The Preferential Offering Basis of Allotment : One New Unit for every 10 existing Units (the ‘‘Existing Units”) standing to the credit of the Securities Accounts (as defined herein) of the Singapore Registered Unitholders (as defined herein) as at 5.00 p.m. on 21 September 2010 (the ‘‘Preferential Offering Books Closure Date”), fractional entitlements to be disregarded and taking into account the Rounding Mechanism. Preferential Offering Issue Price : Between $1.07 and $1.11 per Preferential Offering New Unit payable in full on acceptance. Preferential Offering : The Manager intends to issue 67,858,000 Preferential Offering New Units pursuant to the Preferential Offering at the Preferential Offering Issue Price to Singapore Registered Unitholders on the basis of one New Unit for every 10 Existing Units held as at the Preferential Offering Books Closure Date, fractions of a Unit to be disregarded and taking into account the Rounding Mechanism. As the Preferential Offering is made on a non- renounceable basis, the provisional allotments of Preferential Offering New Units cannot be renounced in favour of a third party or traded on the SGX-ST. Acceptance of and payment for the provisional allotments of Preferential Offering New Units and application for Excess New Units, if any, may be effected, in full or in part, via AREs or through the ATMs of the Participating Banks and must be made in accordance with the “Procedures for Acceptance of, Payment and Excess Application for New Units under the Preferential Offering by Singapore Registered Unitholders” and “Additional Termsand Conditions for Electronic Acceptances of Preferential Offering New Units through an ATM of a Participating Bank” set out in Appendix I and Appendix J of this Offer Information Statement respectively. Singapore Registered Unitholders who have subscribed for or purchased Units under the CPFIS and/or the SRS can only accept their provisional allotments of Preferential Offering New Units and if applicable, apply for Excess New Units by instructing the relevant banks in which they hold their CPFIS accounts and/or SRS accounts to do so on their behalf. Status of the New Units : The Private Placement New Units and the Preferential Offering New Units (as the case may be) will, upon issue and allotment, rank pari passu in all respects with the Existing Units, including the right to any distributions which may be paid for the period from the date of issue of the Private Placement New Units to 31 December 2010, as well as all distributions thereafter. Eligibility of Unitholders to : Please refer to the section “Eligibility of Unitholders to participate in the Preferential Participate in the Preferential Offering” in this Offer Offering Information Statement. The Private Placement New Units are not entitled to participate in the Preferential Offering. Singapore Registered Unitholders’ : In the allotment of Excess New Units, preference will be given to Option the rounding of odd lots and Directors and Substantial

5 Unitholders (including the CapitaLand Group) will rank last in priority. Singapore Registered Unitholders are at liberty to accept in full or in part, or decline (during the period from 24 September 2010 to 30 September 2010) their provisional allotments of New Units and are eligible to apply for the Excess New Units. Applications for the Excess New Units by the Singapore Registered Unitholders are to be made at the Preferential Offering Issue Price. Provisional allotments of Preferential Offering New Units will not be offered to Ineligible Unitholders and no purported acceptance thereof or application therefor by Ineligible Unitholders will be valid. Underwriting : Under the underwriting agreement dated 20 August 2010 (as amended) (the “Underwriting Agreement”) entered into between the Manager and the Joint Lead Managers, Bookrunners and Underwriters, the New Units, save for such number of New Units to be subscribed by the CapitaLand Group pursuant to the Undertaking, are underwritten by the Joint Lead Managers, Bookrunners and Underwriters at a price which will result in an accretion based on the projected DPU between the Enlarged Portfolio as compared to the Existing Portfolio for the financial year ending 31 December 2011 as set out in this Offer Information Statement and subject to the qualifications, assumptions and limitations set out herein. Listing of the New Units : Approval in-principle, subject to certain conditions, has been obtained from the SGX-ST on 19 August 2010 for the listing and quotation of the New Units on the Official List of the Main Board of SGX-ST. The in-principle approval of the SGX-ST is not to be taken as an indication of the merits of the Equity Fund Raising, the New Units, Ascott REIT and/or its subsidiaries. Rounding Mechanism : Where a Singapore Registered Unitholder’s provisional allotment of Preferential Offering New Units is other than in integral multiples of 1,000 Units, it will be increased to such number which, when added to the Singapore Registered Unitholder’s unitholdings as at the Preferential Offering Books Closure Date, results in an integral multiple of 1,000 Units. Trading of the New Units : Upon the listing and quotation of the New Units on the Official List of the SGX-ST, the New Units will be traded on the Main Board of the SGX-ST under the book-entry (scripless) settlement system. For the purposes of trading on the Main Board of the SGX-ST, each board lot of Units will comprise 1,000 Units. All dealings in and transactions (including transfers) of the New Units effected through the SGX-ST and/or The Central Depository (Pte) Limited (“CDP”) shall be made in accordance with the “Terms and Conditions for Operation of Securities Accounts with CDP”, as the same may be amended from time to time, copies of which are available from CDP. There will be no temporary counters for Unitholders and investors to trade New Units in board lots of less than 1,000. Notwithstanding the above, Singapore Registered Unitholders who hold odd lots (that is, lots other than board lots of 1,000)

6 and who wish to trade in odd lots are able to trade odd lots of Units on the SGX-ST’s Unit Share Market. The Unit Share Market is a ready market for trading of odd lots with a minimum size of one Unit. Distribution Policy Ascott REIT’s policy is to distribute its distributable income on a semi-annual basis to Unitholders. In order to ensure fairness to holders of the Existing Units, the Manager intends to declare, in lieu of the Scheduled Distribution, in respect of the Existing Units, an Advanced Distribution of the Distributable Income for the period from 1 July 2010 up to the day immediately prior to the date on which the Private Placement New Units are issued under the Equity Fund Raising. The next distribution thereafter will comprise the Distributable Income for the period from the day that the Private Placement New Units are issued to 31 December 2010. Semi-annual distributions will resume thereafter. The Advanced Distribution is intended to ensure that the Distributable Income accrued by Ascott REIT up to the day immediately prior to the date on which the Private Placement New Units are issued under the Equity Fund Raising (which at this point, will be entirely attributable to the Existing Units) is only distributed in respect of the Existing Units. By implementing the Advanced Distribution, Distributable Income accrued by Ascott REITup to the day immediately prior to the date on which the Private Placement New Units are issued under the Equity Fund Raising will only be distributed, in a single distribution, in respect of the Existing Units. The Transfer Books and Register of Unitholders of Ascott REIT will be closed at 5.00 p.m. on 21 September 2010 to determine the Unitholders’ entitlement to the Advanced Distribution. For the avoidance of doubt: (a) the Preferential Offering New Units and the Private Placement New Units will not be entitled to the Advanced Distribution; and (b) the New Units (including the Preferential Offering New Units) will be entitled to the distribution of any Distributable Income from the date of issue of the Private Placement New Units. Use of CPF Funds : Members participating in the CPFIS may use, subject to applicable CPF rules and regulations, monies standing to the credit of their respective CPF accounts to pay for the Preferential Offering New Units and if applicable, apply for Excess New Units, Such members who wish to accept their provisional allotments and if applicable, to apply for Excess New Units using CPF monies will need to instruct the respective approved banks, where such members hold their CPFIS accounts, to accept the provisional allotments and if applicable, apply for Excess New Units, on their behalf in accordance with this Offer Information Statement. Use of SRS Funds : Unitholders with SRS accounts may use, subject to applicable SRS rules and regulations, monies standing to the credit of their respective SRS accounts to pay for the Preferential Offering New Units and if applicable, apply for Excess New Units. Such Unitholders who wish to accept their provisional allotments and if applicable, apply for Excess New Units using SRS monies, will

7 need to instruct the relevant banks in which they hold their SRS accounts to accept the provisional allotments and if applicable, apply for Excess New Units, on their behalf in accordance with this Offer Information Statement. Governing Law : Laws of the Republic of Singapore In the allotment of Excess New Units, preference will be given to the rounding of odd lots and Directors and Substantial Unitholders (including the CapitaLand Group) will rank last in priority.

Results of the Preferential Offering The Manager will announce the results of the Preferential Offering through an SGXNETannouncement to be posted on the SGX-ST website at www.sgx.com.

Crediting of the Preferential Offering New Units The Preferential Offering New Units will be allotted to Singapore Registered Unitholders on or about 7 October 2010 by crediting them to the Singapore Registered Unitholder’s Securities Accounts. In the case of Singapore Registered Unitholders with valid acceptances, a confirmation note representing such number of Preferential Offering New Units will be sent to CDP within 10 Market Days after 30 September 2010. Such confirmation note shall be deemed to be documentary evidence of title to the Preferential Offering New Units issued, and CDP will thereafter credit such number of Preferential Offering New Units to the relevant Securities Accounts. CDP will then send a notification letter to the relevant subscribers stating the number of Preferential Offering New Units credited to their Securities Accounts.

Rounding Mechanism Where a Singapore Registered Unitholder’s provisional allotment of Preferential Offering New Units is other than an integral multiple of 1,000 Units, the increase in the provisional allotment of Preferential Offering New Units to the Unitholder will be by such number which, when added to such Unitholder’s unitholding as at the Preferential Offering Books Closure Date, results in an integral multiple of 1,000 Units (the “Rounding Mechanism”). For example, a Singapore Registered Unitholder with 2,000 Existing Units as at the Preferential Offering Books Closure Date will be provisionally allotted with 1,000 Preferential Offering New Units under the Preferential Offering should the Unitholder decide to accept his provisional allotment of Preferential Offering New Units pursuant to the Rounding Mechanism (increased from the 200 Preferential Offering New Units allotted based on the ratio of one New Unit for every 10 Existing Units under the Preferential Offering) so that he will own a total of 3,000 Units. The table below provides an illustration of the Rounding Mechanism:

Illustration of the Rounding Mechanism No. of Existing Units Provisional allotment of held as at the Preferential offering of Preferential Offering Preferential Offering one New Unit for every New Units as a result of Books Closure Date 10 Existing Units held the Rounding Mechanism 1,000 100 1,000 5,000 500 1,000 10,000 1,000 1,000 15,000 1,500 2,000 20,000 2,000 2,000 The Rounding Mechanism will be extended to investors who have subscribed for or purchased Units under the CPF Investment Scheme and/or SRS, and to Units held by nominee companies. However, in the case of nominee companies, as the Rounding Mechanism will be applied at the level of the aggregate Units held in the securities accounts of such nominee companies with CDP, investors whose Units are held through such nominee companies may not enjoy the benefit of the Rounding Mechanism on an individual level.

8 The Private Placement TAL, Somerset Capital Pte Ltd and the Manager (together with TAL and Somerset Capital Pte Ltd, the “CapitaLand Group”), each of which is a wholly-owned subsidiary of CapitaLand Limited (“CapitaLand”), is entitled to, and has undertaken to, subscribe for Preferential Offering New Units. In addition, and as part of the Private Placement, the Manager may procure the issue of Private Placement New Units to the CapitaLand Group, as part of the Equity Fund Raising. To show its commitment to Ascott REIT, TAL has undertaken to procure the CapitaLand Group to subscribe for such number of Private Placement New Units, save for such number of Preferential Offering New Units to be subscribed by the CapitaLand Group pursuant to the Undertaking, so as to maintain the CapitaLand Group’s pre-Preferential Offering unitholding, in percentage terms.

Private Placement Issue Price and Preferential Offering Issue Price The Private Placement Issue Price is between $1.07 and $1.13 per New Unit and the Preferential Offering Issue Price is between $1.07 and $1.11 per New Unit. The Private Placement Issue Price shall not be at a discount of more than 10.0% (the “Placement Discount”) to the weighted average price for trades done on the SGX-ST for the full Market Day immediately preceding the date of the lodgment of this Offer Information Statement. If trading in the Units is not available for a full Market Day, the weighted average price must be based on the trades done on the preceding Market Day up to the time this Offer Information Statement is lodged. The Preferential Offering Issue Price, shall not exceed 10.0% discount to the weighted average price for trades done on the SGX-ST for the full Market Day immediately preceding the date of the lodgment of this Offer Information Statement. If trading in the Units is not available for a full Market Day, the weighted average price must be based on the trades done on the preceding Market Day up to the time this Offer Information Statement is lodged. The Private Placement Issue Price and the Preferential Offering Issue Price will be determined by the Joint Lead Managers, Bookrunners and Underwriters, with the agreement of the Manager, within the respective ranges mentioned above, after a book-building process, and will be announced by the Manager thereafter. Such announcement will be made prior to the commencement of the Preferential Offering.

Underwriting of the Equity Fund Raising The Equity Fund Raising, save for such number of New Units to be subscribed for by the CapitaLand Group pursuant to the Undertaking, will be underwritten by the Joint Lead Managers, Bookrunners and Underwriters. (See the section titled “Plan of Distribution — Equity Fund Raising” for more information on the underwriting of the Equity Fund Raising.)

Undertaking To demonstrate their support for Ascott REIT and the Equity Fund Raising, TAL, which together with Somerset Capital Pte Ltd and the Manager, own an aggregate interest of approximately 47.74% in Ascott REITas at the Latest Practicable Date, has provided an undertaking on 20 August 2010, pursuant to which, among others: (a) in relation to the Preferential Offering, it will, and it will procure that each of Somerset Capital Pte Ltd and the Manager will, accept in full its provisional allotment of Preferential Offering New Units under the Preferential Offering at the Preferential Offering Issue Price; and (b) in relation to the Private Placement, it will procure the CapitaLand Group to subscribe, at the Private Placement Issue Price, for such number of Private Placement New Units such that the total number of Private Placement New Units subscribed for by the CapitaLand Group will be the difference between the total number of New Units which the CapitaLand Group would require to maintain its pre- Preferential Offering unitholding, in percentage terms and the total number of Preferential Offering New Units provisionally allotted and accepted by the CapitaLand Group, (the “Undertaking”).

9 Moratorium TAL, being a Controlling Unitholder of Ascott REIT, has undertaken to the Joint Lead Managers, Bookrunners and Underwriters that it will not, and will procure each of its subsidiaries, Somerset Capital Pte Ltd and the Manager, not to, without the prior written consent of the Joint Lead Managers, Bookrunners and Underwriters (such consent not to be unreasonably withheld or delayed), from 20 August 2010 until the date falling 180 days after the listing date of the Preferential Offering New Units (the “Moratorium Period”): (a) offer, sell or contract to sell, grant any option to purchase or otherwise grant security over, create any encumbrance over or otherwise dispose of, or enter into any transaction (including a derivative transaction) which is designed to, or might reasonably be expected to, result in the sale or disposition (whether by actual sale or disposition due to cash settlement or otherwise) of any or all of its effective or direct interests in the Units held by it as at 20 August 2010 and any New Units subscribed for by it under the Equity Fund Raising (the “Moratorium Units”) or any part thereof (or any securities convertible into or exchangeable for Moratorium Units or which carry rights to subscribe for or purchase Moratorium Units or part thereof); (b) deposit any Moratorium Units (or any securities convertible into or exchangeable for Moratorium Units or which carry rights to subscribe for or purchase Moratorium Units or part thereof) in which it has an effective or direct interest in any depository receipt facility; and/or (c) make any announcement with respect to any of the foregoing transactions, other than as required by applicable laws and regulations (collectively, the “Lock-up Restrictions”). The Lock-up Restrictions above do not apply to the transfer of its effective interest in the Moratorium Units to TAL or any of TAL’s wholly-owned subsidiaries provided that each such transferee has executed and delivered to the Joint Lead Managers, Bookrunners and Underwriters an undertaking to the reasonable satisfaction of the Joint Lead Managers, Bookrunners and Underwriters to the effect of the Lock-up Restrictions described above, to remain in effect for the remainder of the Moratorium Period.

10 USE OF PROCEEDS

Offer Proceeds and Use of Proceeds The amount of the net proceeds from the Equity Fund Raising, being the gross proceeds from the Equity Fund Raising of $560.6 million(1) less the estimated amount of underwriting, management and selling commissions, incentive fees and financial advisory fees and related expenses of $9.0 million as well as the professional and other fees and expenses of $8.7 million incurred by Ascott REIT in connection with the Equity Fund Raising, is estimated to be $542.9 million. The Manager intends to utilise the net proceeds of the Equity Fund Raising to part fund the Target Acquisitions, associated costs of Debt Financing and general corporate and working capital purposes. Please refer to Appendix A of this Offer Information Statement for details on the Target Acquisitions. The Manager will make periodic announcements on the utilisation of the net proceeds of the Equity Fund Raising through SGXNET as and when such funds are utilised. Pending the deployment of the net proceeds for the purposes mentioned above, the net proceeds of the Equity Fund Raising may be deposited with banks and/or financial institutions or used for any other purpose on a short-term basis as the Directors may, in their absolute discretion, deem fit. For each dollar of the gross proceeds that will be raised from the Equity Fund Raising, the Manager intends to allocate the gross proceeds from the Equity Fund Raising in the following manner: (a) approximately 95.24 cents to part fund the Target Acquisitions; (b) approximately 1.61 cents to pay for the underwriting, management and selling commissions and financial advisory fees and related expenses payable to the Joint Lead Managers, Bookrunners and Underwriters; and (c) approximately 1.55 cents to pay for the professional and other fees and expenses expected to be incurred by Ascott REIT in connection with the Equity Fund Raising, with the balance of the proceeds amounting to approximately 1.60 cents to be utilised for associated costs of Debt Financing and other general corporate and working capital purposes.

Costs of the Equity Fund Raising If Ascott REIT proceeds with the Equity Fund Raising, the Manager estimates that Ascott REITwill have to bear the following estimated costs and expenses based on an illustrative issue price of $1.15 per New Unit: (a) the underwriting, management and selling commissions, incentive fees and financial advisory fees and related expenses payable to, the Joint Lead Managers, Bookrunners and Underwriters, amounting to up to $9.0 million; and (b) the professional and other fees and expenses of approximately $8.7 million expected to be incurred by Ascott REIT in connection with the Equity Fund Raising.

Additional Details on the Use of Proceeds Acquisition or Refinance the Acquisition of an Asset The Transactions are being made by Ascott REIT (a real estate investment trust) in its ordinary course of business. (See the section titled “Information relating to the Transactions” in this Offer Information Statement for further details.)

Acquisition or Refinance the Acquisition of a Business Save for the Target Acquisitions, none of the proceeds from the Equity Fund Raising will be used to finance or re-finance the acquisition of a business.

(1) Assuming an illustrative issue price of $1.15 per New Unit.

11 Discharge, Reduction or Retirement of the Indebtedness of Ascott REIT Save for the Target Acquisitions, none of the proceeds from the Equity Fund Raising will be used to discharge, reduce or retire the indebtedness of Ascott REIT.

Working Capital The Manager is of the view that, in its reasonable opinion, the working capital available to Ascott REITas at the date of lodgment of this Offer Information Statement, after taking into account the loan facilities and multi-currency medium term note programme available to Ascott REIT and the estimated net proceeds from the Equity Fund Raising, is sufficient for the present requirements of Ascott REIT.

Commission The Manager shall pay to the Joint Lead Managers, Bookrunners and Underwriters an underwriting and selling commission of 2.40% and an incentive fee of up to 0.35%, if any, at the sole discretion of the Manager, of the sum of: (a) the Private Placement Issue Price multiplied by the 419,660,000 Private Placement New Units offered under the Private Placement (excluding the number of New Units which are subject to the Undertaking); and (b) the Preferential Offering Issue Price multiplied by the 67,858,000 Preferential Offering New Units offered (which for greater certainty excludes such number of Preferential Offering New Units required to be subscribed by the CapitaLand Group at the Preferential Offering Issue Price pursuant to the Undertaking), together with any goods and services tax payable thereon.

12 CAPITALISATION, INDEBTEDNESS AND EXISTING BORROWINGS The following table sets forth the actual capitalisation of the Group and the pro forma capitalisation of the Enlarged Ascott REIT Group after giving effect to the Equity Fund Raising and application of the total net proceeds from the Equity Fund Raising as set forth in “Use of Proceeds”, based on the illustrative issue price of $1.15 per New Unit. The information in the table below should be read in conjunction with the sections titled “Discussion of the Pro Forma Results of Operations and Financial Condition of the Enlarged Portfolio” and “Use of Proceeds”. As at 30 June 2010 As at 31 December 2009 Pro forma Pro forma Based on the Based on the illustrative issue illustrative issue price of $1.15 per price of $1.15 per Unaudited New Unit(1) Audited New Unit(1) ($’000) ($’000) ($’000) ($’000) Borrowings(2) 657,546 1,087,321 651,101 1,280,196 Unitholders’ funds 852,794 1,492,813 825,061 1,463,521 Total capitalisation 1,510,340 2,580,134 1,476,162 2,743,717 Notes: (1) As adjusted to give effect to the Transactions, the Equity Fund Raising and the Debt Financing. (2) Being total borrowings less attributable unamortised transaction costs relating to such borrowings. As at the Latest Practicable Date, the Group’s outstanding borrowings (excluding interest) is approximately $671.2 million, including both bank loans and medium term notes. These outstanding borrowings comprise secured debt of $613.1 million from bank facilities, $50.0 million medium term notes and unsecured debt of $8.1 million from bank facilities. The average cost of debt is 3.2% per annum as at 31 August 2010. To the best of the Manager’s knowledge, there are no material differences in the average cost of debt between 31 August 2010 and the Latest Practicable Date. The Group’s borrowings are generally secured on the following: (a) mortgage on subsidiaries’ serviced residence properties and the assignment of the rights, titles and interests with respect to the properties; (b) an assignment of rental proceeds from the properties; (c) an assignment of insurance policies on the properties; (d) a pledge of shares of certain subsidiaries; and (e) a corporate guarantee from Ascott REIT.

13 DISTRIBUTION POLICY Ascott REIT’s distribution policy is to distribute at least 90.0% of its taxable income (other than gains on the sale of real properties or shares by Ascott REIT which are determined to be trading gains) and Net Overseas Income, with the actual level of distribution to be determined at the Manager’s discretion. Distributions, when paid, have been and will be in Singapore dollar. Other than the Advanced Distribution, Ascott REIT intends to make distributions to Unitholders on a semi- annual basis, with the amount calculated as at 30 June and 31 December each year for the six-month period ending on each of the said dates. Under the Trust Deed, the Manager is required to pay distributions within 60 days of the end of each distribution period. In order to ensure fairness to holders of the Existing Units, the Manager intends to declare, in lieu of the Scheduled Distribution, in respect of the Existing Units, the Advanced Distribution. The next distribution thereafter will comprise the Distributable Income for the period from the day that the Private Placement New Units are issued under the Equity Fund Raising to 31 December 2010. Semi- annual distributions are intended to resume thereafter. The Advanced Distribution is intended to ensure that the Distributable Income accrued by Ascott REITup to the day immediately prior to the date on which the Private Placement New Units are issued under the Equity Fund Raising (which at this point, will be entirely attributable to the Existing Units) is only distributed in respect of the Existing Units. By implementing the Advanced Distribution, Distributable Income accrued by Ascott REIT up to the day immediately prior to the date on which the Private Placement New Units are issued under the Equity Fund Raising will only be distributed, in a single distribution, in respect of the Existing Units. The Transfer Books and Register of Unitholders of Ascott REITwill be closed at 5.00 p.m. on 21 September 2010 to determine the Unitholders’ entitlement to the Advanced Distribution. For the avoidance of doubt: (a) the Preferential Offering New Units and the Private Placement New Units will not be entitled to the Advanced Distribution; and (b) the New Units (including the Preferential Offering New Units) will be entitled to the distribution of any Distributable Income from the date of issue of the Private Placement New Units. In the event that there are gains arising from sale of real properties or shares by Ascott REITor from sale of real properties or shares by relevant property holding companies and only if such gains are surplus to the business requirements and needs of Ascott REIT and their taxability or otherwise determined, the Manager may, at its discretion, direct the Trustee to distribute such gains. Such gains, if not distributed, will form part of the Deposited Property. The gain arising from the Divestment will not be distributed to Unitholders. The net proceeds from the Divestment of approximately $168.7 million will be used to part fund the Target Acquisitions. See Appendix B — “Tax Considerations” in this Offer Information Statement for information on the Singapore income tax consequences of distributions to Unitholders.

14 INFORMATION RELATING TO THE TRANSACTIONS The Manager has obtained the approval of Unitholders at the EGM in respect of, among others, the Transactions. The Manager intends to utilise the net proceeds of the Equity Fund Raising to part fund the Target Acquisitions and associated costs and for working capital purposes.

The Target Acquisitions Following negotiations between the Manager and the Vendor Companies of each of the Target Acquisitions, the Trustee, upon the Manager’s recommendations, has entered into conditional sale and purchase agreements with each of the Vendor Companies for each of the Target Acquisitions. The following table shows, among other things, the dates of signing of the conditional sale and purchase agreements and the expected dates of completion for each Target Acquisition: Date of Signing of Conditional Sale and Expected Vendor Entities to Purchase Date of Company be Acquired Target Property Agreement(s) Completion Citadines n.a. 1) Citadines Singapore Mount 20 August 2010 On or before Singapore Mount Sophia Property 31 December 2010 Sophia Pte. Ltd. TAHL Somerset Hoa Binh 2) Somerset Hoa Binh, Hanoi 20 August 2010 On or before (S) Pte. Ltd.(1) 31 December 2010 Ascott Europe Ascott 3) Citadines Lille Centre, 20 August 2010 On or before Netherlands(2),(3) 4) Citadines Grenoble, 31 December 2010 5) Citadines Paris Louvre, 6) Citadines Paris Trocadéro, 7) Citadines Lyon Presqu’île, 8) Citadines Paris Place d’Italie, 9) Citadines Paris Montmartre, 10) Citadines Paris Tour Eiffel, 11) Citadines Montpellier Antigone, 12) Citadines Marseille Castellane, 13) Citadines Paris Austerlitz, 14) Citadines Paris Voltaire République, 15) Citadines Paris Maine- Montparnasse, 16) Citadines Marseille Prado Chanot, 17) Citadines Paris Les Halles, 18) Citadines Paris Didot Alésia, 19) Citadines Cannes Carnot, 20) Citadines London Barbican, 21) Citadines London Trafalgar Square, 22) Citadines London South Kensington, 23) Citadines Bruxelles Sainte- Catherine, 24) Citadines Bruxelles Toison d’Or, 25) Citadines Berlin Kurfu¨rstendamm, 26) Citadines Munich Arnulfpark and 27) Citadines Barcelona Ramblas Ascott Europe Citadines Holborn(4) 28) Citadines London Holborn-Covent 20 August 2010 On or before Garden 31 December 2010

Notes: (1) Somerset Hoa Binh (S) Pte. Ltd. holds 90.0% of Somerset Hoa Binh Joint Venture Company Limited, which holds the Vietnam Target Property directly. (2) Ascott Netherlands holds Citadines Arnulfpark Munich BV which holds a 99.0% effective interest in Citadines Munich Arnulfpark through a Property Holding Company. (3) Ascott Netherlands holds Oriville SAS which holds two of the France Target Properties directly, and 100.0% of the various Property Holding Companies which hold 100.0% of the remaining Europe Target Properties (save for Citadines London Holborn-Covent Garden) directly. (4) Citadines Holborn, which holds Citadines London Holborn-Covent Garden, is held by Ascott (Jersey) Limited (“Ascott Jersey”) which in turn is wholly-owned by Ascott Europe.

15 Descriptions of the Target Properties The Target Acquisitions will comprise the acquisition of (a) one serviced residence property each in Singapore and Vietnam which will complement Ascott REIT’s Existing Portfolio of serviced residence properties in these growing markets and (b) 26 in Europe, including 14 in the global cities of Paris and London. Detailed information about each of the Target Properties is set out in Appendix A of this Offer Information Statement. With effect from the completion of the Target Acquisitions, Ascott REIT’s investment policy will be expanded to include investments in real estate and real-estate related assets which are income- producing and which are used or predominantly used as serviced residences or rental housing properties in any country in the world. By an agreement dated 20 January 2006, TAL (formerly known as The Ascott Group Limited) agreed to grant Ascott REIT a right of first refusal (“ROFR”) over future purchases or sales of properties which are used, or primarily used, as serviced residences or rental housing properties (the “Relevant Assets”), in the Pan-Asian Region (including but not limited to and for the avoidance of doubt, those under “Ascott”, “Somerset” and “Citadines” brands) and if applicable, the shares or equity interests in single purpose corporations which hold such properties directly or indirectly which are either wholly or partly owned by TAL or any of its wholly-owned subsidiaries. In the ROFR, it was also provided that Ascott International Management (2001) Pte Ltd (“AIM”) and/or any of its affiliates (the “AIM Group”) shall have the right of first refusal to provide property management services in relation to such Relevant Assets acquired pursuant to the ROFR. In connection with the Target Acquisitions, the ROFR will be amended to cover Relevant Assets in Europe and the Pan-Asian Region. Also, the right of first refusal granted to the AIM Group will be expanded to include the right to lease the Relevant Asset as a master lessee as an alternative to the existing right to provide property management services in respect of the Relevant Assets, subject to the terms of the ROFR.

Valuations of the Target Properties The following table sets out the details of the Vendor Companies of the TargetProperties and the appraised values of each Target Property. Appraised Value Target Property Vendor Company ($ million)(1)

Singapore 1) Citadines Singapore Mount Sophia Property(2) Citadines Singapore Mount 107.0 Sophia Pte. Ltd. Vietnam 2) Somerset Hoa Binh, Hanoi(2) TAHL 54.9 France 3) Citadines Lille Centre(3) Ascott Europe 16.2 4) Citadines Grenoble(3) Ascott Europe 16.7 5) Citadines Paris Louvre(3),(9) Ascott Europe 40.3 6) Citadines Paris Trocadéro(3) Ascott Europe 51.3 7) Citadines Lyon Presqu’île(3) Ascott Europe 21.4 8) Citadines Paris Place d’Italie(3) Ascott Europe 56.3 9) Citadines Paris Montmartre(3) Ascott Europe 40.4 10) Citadines Paris Tour Eiffel(3) Ascott Europe 59.2 11) Citadines Montpellier Antigone(3),(4) Ascott Europe 13.8

16 Appraised Value Target Property Vendor Company ($ million)(1)

12) Citadines Marseille Castellane(3),(4) Ascott Europe 10.7 13) Citadines Paris Austerlitz(3),(4) Ascott Europe 9.6 14) Citadines Paris Voltaire République(3),(4) Ascott Europe 21.2 15) Citadines Paris Maine-Montparnasse(3),(4) Ascott Europe 20.6 16) Citadines Marseille Prado Chanot(3) Ascott Europe 9.4 17) Citadines Paris Les Halles(3) Ascott Europe 88.2 18) Citadines Paris Didot Alésia(3),(4) Ascott Europe 25.7 19) Citadines Cannes Carnot(3),(4) Ascott Europe 8.4 United Kingdom 20) Citadines London Barbican(5) Ascott Europe 75.0 21) Citadines London Trafalgar Square(5) Ascott Europe 130.9 22) Citadines London South Kensington(5) Ascott Europe 71.1 23) Citadines London Holborn-Covent Garden(5) Ascott Europe 127.5 Belgium 24) Citadines Bruxelles Sainte-Catherine(6) Ascott Europe 26.7 25) Citadines Bruxelles Toison d’Or(6) Ascott Europe 23.5 Germany 26) Citadines Berlin Kurfu¨rstendamm(7) Ascott Europe 21.1 27) Citadines Munich Arnulfpark(7) Ascott Europe 34.0 Spain 28) Citadines Barcelona Ramblas(8) Ascott Europe 56.7 Total 1,237.8

Notes: (1) Based on (a) the average of the two independent valuations by Savills UK and HVS undertaken as of 1 July 2010 and (b) a direct interest of 100.0% in the Target Properties held by the relevant Property Holding Companies. (2) The Asia Target Properties are managed by the AIM Group under the SR Management Agreements. (3) The France Target Properties are leased to Citadines SA under 17 Master Leases. (4) Of the Europe Target Properties, seven in France are owned and leased by Finance Companies, each under the Finance Lease Arrangement pursuant to each of which, the Finance Lessee has a contractual right to use the premises and a promise of sale at the expiry of the finance lease in consideration for the payment of rental by the Finance Lessee to the Finance Company.Under each of the Financial Lease Arrangement, the relevant Finance Lessee may acquire legal title to the Relevant France Target Property by exercising its option to purchase the property (a) prior to the expiry of the finance lease by, among others, providing six months’ notice to the Finance Company and making pre-payment for the outstanding rentals due to the Finance Company (which as at 30 June 2010, amounts to an aggregate of $30.1 million), or (b) at the expiry of the finance lease by making a nominal payment of $1.00 to the Finance Company. Upon the exercise of the option by serving the six months’ notice, the legal title will, in accordance with the Finance Lease Arrangements, be delivered to the Finance Lessees by the end of that financial year or the next financial year (if the period between the date of notice to the year end is less than six months). As at the date of this Offer Information Statement, the relevant Finance Lessee does not intend to acquire the Relevant France Target Property until the expiry of the said finance lease. (5) The UK Target Properties are managed by Soderetour UK Ltd under the SR Management Agreements. (6) The Belgium Target Properties are managed by Citadines SA under the SR Management Agreements. (7) The Germany Target Properties are leased to Citadines Betriebsgesellschaft mbH under two separate Master Leases. (8) The Spain Target Property is managed by Aparthotel Citadines SA under an SR Management Agreement. (9) On 2 August 2010, TAL announced the conversion of Citadines Paris Louvre into Ascott Louvre Paris, the first Ascott-branded property in France, which is targeted to be completed in 2011.

17 (See Appendix G of this Offer Information Statement for the summary of the valuation certificates issued by each of the Independent Valuers in relation to the relevant Target Property and the risk factor “The future market value of the properties within the Enlarged Portfolio may differ from the valuations determined by the Independent Valuers” under the section titled “Risk Factors” in this Offer Information Statement.)

Structure of the Target Acquisitions The Singapore Target Acquisition The Singapore Target Property is owned by Citadines Singapore Mount Sophia Pte. Ltd., a wholly-owned subsidiary of TAL. Ascott REIT is proposing to acquire direct ownership of the Singapore Target Property from Citadines Singapore Mount Sophia Pte. Ltd. for a consideration of $107.0 million.

Structure of the Vietnam Target Acquisition A 90.0% interest in the Vietnam Target Property is owned indirectly by Somerset Hoa Binh (S) Pte. Ltd., a wholly-owned subsidiary of TAL. Ascott REIT is proposing to acquire a 90.0% effective interest in the Vietnam Target Property through the acquisition of 100.0% of the issued shares in Somerset Hoa Binh (S) Pte Ltd which holds a 90.0% direct interest in Somerset Hoa Binh Joint Venture Company Limited from TAHLfor an estimated consideration of US$38.5 million (equivalent to approximately $53.1 million).

Structure of the Europe Target Acquisitions All the Europe Target Properties are indirectly owned by Ascott Netherlands and Ascott Jersey (and in the case of Citadines Munich Arnulfpark, a 99.0% interest). Ascott Netherlands and Ascott Jersey are wholly- owned subsidiaries of Ascott Europe which in turn is wholly-owned by TAL. To effect the acquisition, Ascott REIT has set up: (a) Ascott REIT (Europe) Pte Ltd, a wholly-owned company incorporated in Singapore, which will hold a 100.0% direct interest in Ascott Netherlands from Ascott Europe, for an estimated consideration of: (i) e208.6 million (in relation to the Europe Target Properties (other than the UK Target Properties) and (ii) £106.7 million (in relation to the UK Target Properties, excluding Citadines London Holborn- Covent Garden), (equivalent to approximately $585.9 million); and (b) Ascott REIT (Jersey) Limited, a wholly-owned company established in Jersey, which will hold a 100.0% direct interest in Citadines Holborn from Ascott Jersey, for an estimated consideration of £32.9 million (equivalent to approximately $68.2 million). In a deed of guarantee dated 20 August 2010 (the “Deed of Guarantee”), TAL has guaranteed the due performance of Ascott Europe’s obligations under the Sale and Purchase Agreement in relation to the Europe Target Acquisitions.

Principal Terms of the Sale and Purchase Agreements The principal terms of the Sale and Purchase Agreements include, among others, the following: (a) The Net Purchase Consideration, which shall be adjusted for the consolidated net asset value as at completion, shall be fully satisfied in cash, at completion. (b) The completion of the Target Acquisitions is subject to and conditional upon, among others: (i) the receipt by the Trustee under each of the Sale and Purchase Agreements (in relation to the Vietnam Target Acquisition and the Europe Target Acquisitions) of such waivers or consents as may be necessary to enable it and/or its nominee(s) to be registered as holder of the shares in Somerset Hoa Binh (S) Pte. Ltd., Ascott Netherlands and Citadines Holborn;

18 (ii) the approval of Unitholders of the Transactions, the issue of New Units in connection with the Equity Fund Raising and the placement of Private Placement New Units to the CapitaLand Group; (iii) the completion of the Equity Fund Raising; and (iv) there being no compulsory acquisition of any of the Target Properties (or any part of the properties or the buildings comprised therein), and no notice of such intended compulsory acquisition having been given, by the government or other competent authority. (c) The Vendor Companies have provided representations and warranties in respect of the shares in entities to be acquired with certain limitations on the liability of the Vendor Companies in respect of any breach of warranties, including provisions for an aggregate maximum liability, minimum thresholds for claims and limitation periods. In particular, TAL has agreed to indemnify Ascott REIT for any costs that may be incurred in relation to any clean-up or decontamination efforts that may arise from groundwater contamination of the land on which Citadines Berlin Kurfu¨rstendamm is situated. (d) The Trustee shall not be obliged to procure the completion of any one of the Sale and Purchase Agreements unless all the Sale and Purchase Agreements and the Ascott Beijing Sale and Purchase Agreement are completed simultaneously. (e) Ascott REIT shall provide and issue a corporate guarantee in the amount of approximately e206.0 million in favour of lenders of several companies in the group of companies that currently hold the Europe Target Properties on completion of the Sale and Purchase Agreements in connection with the loans which had been extended by the lenders to these companies.

Other Forms of Funding Ascott REIT may inject capital to fund the overseas acquisitions through a combination of shares (ordinary and/or preference), shareholder loans or other forms as dictated by the structure of investment in each of the overseas countries.

Method of Distribution Ascott REIT may receive the income from its investments in the Target Properties in the form of dividends, interest income and/or the repayment of inter-company loans. (See Appendix B of this Offer Information Statement for information on tax considerations.)

Estimated Total Acquisition Costs The current estimated total cost of the Target Acquisitions is approximately $847.3 million, comprising: (a) the estimated Net Purchase Consideration of $814.2 million which comprises: (i) in respect of the Singapore Target Acquisition, a purchase consideration of $107.0 million; (ii) in respect of the Vietnam Target Acquisition, an estimated purchase consideration of US$38.5 million (equivalent to approximately $53.1 million) (subject to price adjustments for the consolidated net assets and liabilities as at completion of the Vietnam Target Acquisition); (iii) in respect of the Europe Target Acquisitions (excluding the acquisition of Citadines London Holborn-Covent Garden), an estimated aggregate purchase consideration of: (A) e208.6 million (in relation to the Europe Target Properties (other than the UK Target Properties); and (B) £106.7 million (in relation to the UK Target Properties, excluding Citadines London Holborn-Covent Garden), (equivalent to approximately $585.9 million), subject to (A) price adjustments for the consolidated net assets and liabilities as at completion of the Europe Target Acquisitions and (B) after setting off intra-group debts of $155.4 million; and (iv) in respect of the acquisition of Citadines London Holborn-Covent Garden, an estimated purchase consideration of £32.9 million (equivalent to approximately $68.2 million) (subject

19 to price adjustments for the consolidated net assets and liabilities as at completion of the Europe Target Acquisitions); and (b) the estimated fees and expenses (including professional fees, expenses and underwriting commissions and acquisition fees which is to be paid in Units) of approximately $33.1 million incurred or to be incurred by Ascott REIT in connection with the Target Acquisitions, the Equity Fund Raising and the Debt Financing.

Method of Financing Ascott REIT intends to finance the total acquisition costs relating to the Target Acquisitions from the net proceeds of the Equity Fund Raising, Debt Financing and the Divestment. The Net Purchase Consideration for the Target Acquisitions is $814.2 million. A further breakdown of the sources and uses of funds are as follows: Sources of funds ($ million) Uses of funds ($ million) Equity Fund Raising(1) 560.6 Net Purchase Consideration for the 814.2 Target Acquisitions Proceeds from the Divestment (net 168.7 General corporate and working 12.2 of expenses) capital purposes Debt Financing 116.3 Associated costs(2) of the Target 19.2 Acquisitions, the Divestment, the Equity Fund Raising and the Debt Financing (including applicable stamp duties, legal and other professional fees and expenses) Total 845.6 Total 845.6

Notes: (1) Assuming 487,518,000 New Units are issued at an illustrative issue price of $1.15 per New Unit. (2) Excludes acquisition fees of approximately $13.9 million and a divestment fee of approximately $1.5 million which will be payable in Units to the Manager. Ascott REIT has a Baa3 corporate family investment grade rating assigned by Moody’s Investors Service. The Property Funds Appendix provides that the Aggregate Leverage of Ascott REIT may exceed 35.0% of the value of the Deposited Property (up to a maximum of 60.0%) if a credit rating of the REIT from Fitch, Inc, Moody’s Investors Service or Standard & Poor’s is obtained and disclosed to the public. Following the completion of the Transactions, the Equity Fund Raising and Debt Financing, the Aggregate Leverage of Ascott REIT is not expected to increase from its level of 40.7% as at 30 June 2010. Upon completion of the Transactions, the Equity Fund Raising and the Debt Financing, the average loan tenure for the Enlarged Portfolio is expected to improve from 1.3 years to 2.9 years.

Competitive Strengths of the Target Properties Strategic locations within the respective city’s central business or commercial districts The Target Properties are generally located in major global cities and important regional cities which experience high volume of business and leisure travellers. Each Target Property is located close to the city centre, tourist attractions or facilities for meetings, incentives, conferences and exhibitions events. For example, the France Target Properties in Paris are located in prime areas of the city near famous landmarks such the Louvre, the Eiffel Tower, Notre Dame and the Seine River. One of the France Target Properties is located in Cannes, well known for its annual International Film Festival and a popular holiday destination. Similarly in London, the UK Target Properties are located either near business districts or tourist destinations such as Trafalgar Square and the Victorian district of South Kensington.

Fully-furnished quality serviced residences The Manager believes that the Target Properties will be able to attract a stable stream of guests due to their attractive locations and features, including high quality fitouts, fully equipped kitchens, home entertainment systems, broadband internet, business centre facilities, security and CCTV surveillance,

20 breakfast and housekeeping services and recreational facilities including gymnasiums, pools, gardens and children’s playgrounds. These features may vary between Target Properties.

The Target Properties benefit from the Citadines and Somerset brand names The Target Properties are operated under the Citadines and Somerset brand names. The Citadines brand name has been in use in Europe since 1984 and has been further developed by TAL since the brand name was acquired in 2004. At the 2009 Business Traveller Awards in the United Kingdom, the Citadines brand was awarded second place in the “Best Serviced Apartment Company” category by Business Traveller, a magazine targeted at frequent business travellers with nine editions worldwide, behind the Ascott brand which garnered the top accolade. In Vietnam, the Somerset Serviced Residence brand was awarded The Guide Awards 2008-2009 (Certificate of Excellence) for the sixth consecutive year by the Vietnam Economic Times’ The Guide Magazine. The Vietnam Target Property is operated under the Somerset brand, which is currently used by Ascott REIT and is well established in Asia. The Citadines brand has a style and market positioning consistent with the existing Ascott and Somerset brands currently used by Ascott REIT, reinforcing the international network of serviced residences operated by Ascott REIT.

Quality guest profile which is diversified across market segments and industries The Target Properties’ guest base comprises expatriate families, business travellers, and corporate executives drawn from prominent domestic and international corporations, a wide range of industry sectors and government bodies. In addition, the Target Properties under the SR Management Agreements enjoy demand from a diversified group of guests which provides relative stability to the earnings of the Enlarged Portfolio by limiting reliance on any particular industry or group of clients.

Exposure to both growing and stable markets in the Pan-Asian Region and Europe The Manager expects that the Target Acquisitions will provide Ascott REIT with exposure to both growing markets in the Pan-Asian Region and stable and established markets in Europe, in particular from global cities such as London and Paris. See Appendix H of this Offer Information Statement for the Independent Serviced Residences Market Overview Report.

Serviced residences compare favourably to hotels The Manager believes that the serviced residence asset class compares favourably to hotels for potential customers for reasons including: (a) Serviced residences offer a lower cost of stay for longer lengths of stay. For example, The Apartment Service 2008 Global Survey conducted by The Apartment Service, an European serviced apartment company with a network of over 700 locations worldwide, estimates an average 18.5%(1) saving for a month-long stay versus an equivalent stay in a hotel; and (b) Serviced residences often include home-like features including cooking facilities which attract families and relocating employees, often combined with hotel-like amenities such as broadband internet, reception desks and housekeeping services.

Potential capital value upside Serviced residences may be converted to residential units at a lower cost than hotels and office buildings due to the kitchens and other amenities built into most serviced residence units. This means that a serviced residence owner has the option to continue to own such units or, if residential values are sufficiently attractive to strata-title and sell the units or sell the property to a residential developer who may on-sell the units as private residences.

Note: (1) Percentage based on comparisons of four star hotels and four star serviced apartments. The Apartment Service, the trading name of Roomspace Ltd has not consented to the inclusion of the information quoted under this section and is thereby not liable for such information under Sections 253 and 254 (read with Section 302) of the Securities and Futures Act. The Manager has included the above information in their proper form and context in this Offer Information Statement and has not verified the accuracy of these statements.

21 Master Leases pay fixed rental and are subject to rental adjustments The rental payments under the Master Leases are generally fixed for a period of time. However, the Master Leases provide for annual rental revisions pegged to indices representing construction costs, inflation or commercial rental prices according to market practice. Accordingly, the rental revisions may be adjusted upwards or downwards depending on the above factors. When the Target Acquisitions are completed, Ascott REITwill receive the benefit of the stability of rental from the Master Leases, as well as the potential to receive increases in rental through the step up mechanism summarised in Appendix A of this Offer Information Statement.

The Master Leases The Property Holding Companies holding the France Target Properties and the Germany Target Properties have entered into the Master Leases with the Master Lessees. In connection with the France Target Acquisitions and the Germany Target Acquisitions, the Master Leases will continue to subsist upon completion of the Target Acquisitions. The Master Leases have remaining terms of between six to 19 years and are at fixed net rentals per annum. In addition, the Master Leases provide for annual rental revisions pegged to indices representing construction costs, inflation or commercial rental prices according to market practice. Accordingly, the rental revisions may be adjusted upwards or downwards depending on the above factors. The Master Leases are expected to contribute approximately 27.8% of the total annualised EBITDA of the Enlarged Ascott REIT Group for the three months ending 31 December 2010 (excluding a one-time gain from the Divestment and any change in fair value of serviced residences) based on the Profit Forecast and subject to the qualifications, assumptions and limitations set forth therein. (See the risk factors “The assumptions set forth in the Profit Forecast and Profit Projection are inherently uncertain and are subject to significant business, economic, financial, regulatory and competitive risks and uncertainties”, “The actual performance of Ascott REIT and the Enlarged Portfolio will differ from the forecasts and projections set forth in this document and such differences may be material”, “Any breach by (a) the Master Lessees and TAL of their obligations under the Master Leases or (b) the SR Management Companies and TAL or their obligations under the SR Management Agreements may have an adverse effect on Ascott REIT” and “The Master Lessees may not renew a number of the Master Leases” under the section titled “Risk Factors” in this Offer Information Statement for further details.) Following the completion of the Target Acquisitions, Ascott REITwill enjoy greater income stability through Master Leases in respect of the 17 France Target Properties and two Germany Target Properties. Citadines SA, as the Master Lessee for the France Target Properties, has the option to terminate certain of the Master Leases at the end of every three-year period of the relevant Master Leases. Under the TAL Undertaking, TAL will procure that: (a) in respect of Master Leases with an original term of nine years, namely the Master Leases in relation to Citadines Lille Centre, Citadines Grenoble, Citadines Paris Louvre, Citadines Paris Trocadéro, Citadines Lyon Presqu’île, Citadines Paris Place d’Italie, Citadines Paris Montmartre, Citadines Paris Tour Eiffel, Citadines Marseille Prado Chanot and Citadines Paris Les Halles, Citadines SA fulfils the full nine-year term of these Master Leases; and/or (b) in respect of other Master Leases with an original term of 12 years, namely the Master Leases in relation to Citadines Paris Austerlitz, Citadines Paris Didot Alésia, Citadines Maine Montparnasse, Citadines Paris Voltaire République, Citadines Marseille Castellane, Citadines Montpellier Antigone and Citadines Cannes Carnot, Citadines SA will renew such Master Leases (expiring in 2011) and waives its option to terminate at the end of the first three-year period of the renewed Master Leases. As a result of the TAL Undertaking, the Master Leases as provided in paragraph (a) above have a remaining term of between seven to eight years and the Master Leases as provided in paragraph (b) above have a remaining term of six years from the commencement of the renewed Master Lease. The Master Leases in relation to the Germany Target Properties, namely Citadines Berlin Kurfu¨rstendamm and Citadines Munich Arnulfpark have remaining terms of 12 years and 19 years respectively. Under the TAL Undertaking, TAL will pay and satisfy the Trustee and/or the Master Lessor on demand in writing all outstanding sums, being the payment of rent and other charges, fees and amounts as set forth in

22 the Master Leases which are due to the Master Lessor in the event of any failure to pay such sums by the Master Lessee. The terms of the Master Leases include the following: (a) an annual payment of rent on a quarterly basis in advance(1); (b) a late payment penalty in respect of late payment of rent or other sum payable pursuant to the relevant Master Lease, calculated pro rata in relation to the delay in payment, at an interest rate between 3.0% to 5.0% over the legal interest rate or the European Central Bank lending rate(2); (c) the Master Lessee may, with the Master Lessor’s consent, only assign or transfer its rights, benefits or obligations under the Master Lease if the Master Lease is to be assigned as a whole to the purchaser of the Master Lessee’s on-going concern and the Master Lessee shall remain liable as a joint guarantor for all the successive assignees’ obligations; (d) the Master Lessee shall bear all taxes, including the land property tax; (e) in relation to the France Target Properties, the Master Lessee shall obtain insurance policies in relation to, among other things, fire, explosions, floods, and the Master Lessee waives, and must obtain from its insurers, a waiver of any recourse against the Master Lessor and its insurer and in relation to the Germany Target Properties, the Master Lessee must obtain adequate insurance coverage with the Master Lessor as the co-insured; (f) in the event of a total destruction of the relevant Target Property, the Master Lease shall be automatically terminated and in case of a partial destruction, the Master Lessee has the choice between requesting a rent deduction and terminating the Master Lease(3),(4),(5); and (g) in the case of non-payment of rent or a breach of any covenant in the Master Lease, the Master Lessor is entitled to terminate the Master Lease on expiry of a one month period after delivery of a notice to pay, or to remedy the breach, such notice left unanswered or without remedy. (See the section titled “Related Party Transactions” and the risk factor “The Manager is a wholly-owned subsidiary of TAL. There may be potential conflicts of interest between Ascott REIT, the Manager and TAL” under the section titled “Risk Factors” in this Offer Information Statement for further details on related party transactions, and Appendix A of this Offer Information Statement for more information on the Master Leases.)

The SR Management Services Upon completion of the Target Acquisitions, the seven Europe Target Properties that are not under the Master Leases, namely the UK Target Properties, the Belgium Target Properties and the Spain Target Property, together with the Vietnam Target Property, will continue to be managed and operated by the SR Management Companies, which are wholly-owned subsidiaries of TAL under the existing separate SR Management Agreements, which will continue to subsist following the completion of the relevant Europe Target Acquisitions and the Asia Target Acquisitions, as the case may be. Further, upon completion of the Singapore Target Acquisition, the existing SR Management Agreement in respect of the Singapore Target Property will be novated to the Trustee. These SR Management Companies comprise Soderetour UK Ltd

Note: (1) Save for Citadines Berlin Kurfu¨rstendamm and Citadines Munich Arnulfpark, rental for which is paid on a monthly basis and save for Citadines Paris Tour Eiffel, Citadines Paris Les Halles, Citadines Paris Place d’Italie and Citadines Lyon Presqu’île rental for which is payable in arrears. (2) Save for Citadines Paris Austerlitz, Citadines Paris Didot Alésia, Citadines Paris Maine-Montparnasse, Citadines Paris Voltaire République, Citadines Marseille Castellane, Citadines Montpellier Antigone and Citadines Cannes Carnot which provides for an increase of the amount due by 10.0% by way of penalty. (3) Save for Citadines Paris Voltaire République and Citadines Paris Didot Alésia where there is no provision for partial destruction of the relevant Target Property. (4) Save for Citadines Montpellier Antigone, Citadines Paris Austerlitz, Citadines Paris Maine-Montparnasse, Citadines Cannes Carnot and Citadines Marseille Castellane where the Master Lease is automatically terminated for both partial and total destruction of the relevant Target Property. (5) Save for Citadines Berlin Kurfu¨rstendamm and Citadines Munich Arnulfpark where the Master Lessee is obliged to rebuild/ restore the relevant TargetProperty and the Master Lease continues to remain valid and in force during such time. However, the Master Lessee does not have the obligation to pay rent and other payments during this period.

23 (for the UK Target Properties), Citadines SA (for the Belgium Target Properties), Aparthotel Citadines SA (for the Spain Target Property) and AIM (for the Asia Target Properties) and are the companies through which TAL provides management services for serviced residences in the respective jurisdictions. Under the existing SR Management Agreements, excluding those in relation to the Asia Target Properties, the relevant SR Management Companies have warranted that the seven Europe Target Properties not under the Master Leases arrangement will achieve a minimum guaranteed NOP per annum. The relevant SR Management Companies shall pay to the relevant Property Holding Companies the shortfall in actual NOP and the minimum guaranteed NOP in accordance with the terms of the SR Management Agreements. Under the TAL Undertaking, TAL will pay and satisfy the Trustee or the relevant Property Holding Companies the shortfall between the actual NOP and the minimum guaranteed NOP under the SR Management Agreements in the event that the relevant SR Management Companies fail to do so. The minimum guaranteed NOP has been considered and taken into account by the Manager in the assumptions underlying Appendix E — “Profit Forecast and Profit Projection” of this Offer Information Statement, which has been reviewed by the Independent Accountants. (See the risk factors “The assumptions set forth in the Profit Forecast and Profit Projection are inherently uncertain and are subject to significant business, economic, financial, regulatory and competitive risks and uncertainties”, “The actual performance of Ascott REIT and the Enlarged Portfolio will differ from the forecasts and projections set forth in this document and such differences may be material” and “Any breach by (a) the Master Lessees and TAL of their obligations under the Master Leases or (b) the SR Management Companies and TAL or their obligations under the SR Management Agreements may have an adverse effect on Ascott REIT” under the section titled “Risk Factors” in this Offer Information Statement.) The SR Management Agreements are for a term of 10 years and the SR Management Company is paid a basic management fee of a percentage of the total revenue of the serviced residence and of the net operating profit of the serviced residence. Once the net operating profit of the serviced residence increases above a hurdle amount, the SR Management Company, save for those in relation to the Asia Target Properties, will also be paid an incentive fee that is 50.0% of the net operating profit that exceeds the net operating profit hurdle. Such net operating profit hurdle is indexed on an annual basis. The terms of the SR Management Agreements include the following: (a) the relevant Property Holding Company shall obtain and maintain, at its own cost and expense, all governmental permissions, licences and permits for the operation of the serviced residence and ensure that the serviced residence is in compliance with applicable laws and regulations; (b) the relevant Property Holding Company shall bear all taxes, including land property tax; (c) the SR Management Company may assign or transfer its rights, benefits or obligations under the SR Management Agreement to any of its related corporations; (d) the relevant Property Holding Company may assign its rights, benefits or obligations to the purchaser of the serviced residence in its entirety with the prior written consent of the SR Management Company (such consent not to be unreasonably withheld); (e) in the case of non-payment by the relevant Property Holding Company, the SR Management Company is entitled to terminate the SR Management Agreement on expiry of a 30 day period after delivery of a notice to terminate(1) and in such an event, the relevant Property Holding Company shall indemnify the SR Management Company for all costs incurred up to the date of termination and for all direct losses as a result of the termination; (f) in the event of a total destruction by fire or force majeure, and reconstruction is not possible or in the case of expropriation, condemnation, compulsory acquisition, the SR Management Company may terminate the SR Management Agreement by giving written notice; and

Note:

(1) Save for the Asia Target Properties, Citadines London Barbican, Citadines London Trafalgar and Citadines London Holborn- Covent Garden, where it was provided that if the relevant Property Holding Company does not pay the SR Management Company, the SR Management Company shall terminate the SR Management Agreement within 10 days from the date of a written demand.

24 (g) in the event the SR Management Agreement is terminated by the relevant SR Management Company by reason of or as a consequence of any breach or wrongful repudiation by the relevant Property Holding Company, the relevant Property Holding Company shall compensate the SR Management Company for all costs incurred by the SR Management Company up to the date of termination and pay the SR Management Company an amount as compensation which is based on the number of days remaining in the term of the SR Management Agreement. (See the section titled “Related Party Transactions”in this Offer Information Statement for further details on related party transactions and Appendix A of this Offer Information Statement for more information on the SR Management Agreements.)

The Finance Lease Arrangements Under each of the Finance Lease Arrangements, the relevant Finance Lessee may acquire the legal titles to the Relevant France Target Property by exercising its option to purchase the property (a) prior to the expiry of the finance lease by, among others, providing six months’ notice to the Finance Company and making pre-payment for the outstanding rentals due to the Finance Company (which as at 30 June 2010, amounts to an aggregate of $30.1 million), or (b) at the expiry of the finance lease by making a nominal payment of $1.00 to the Finance Company. Upon the exercise of the option by serving the six months’ notice, the legal title will, in accordance with the Finance Lease Arrangements, be delivered to the Finance Lessees by the end of that financial year or the next financial year (if the period between the date of notice to the year end is less than six months). According to the Property Funds Appendix, Ascott REIT should acquire legal and good marketable titles to the Relevant France Target Properties. In order to comply with this requirement, the Manager will need to procure the Vendor Companies to require the Finance Lessees to exercise the purchase option by serving a six-month notice on the Finance Companies, and the Vendor Companies will be required to pre-pay the outstanding rentals due to the Finance Companies. The Manager will also need to source new financing to complete the acquisition of the Relevant France Target Properties. The Manager considered the structure of acquiring the shares in the Finance Lessees (together with the existing Finance Lease Arrangements), as opposed to the option of sourcing for new financing arrangements in order to acquire the legal title to the Relevant France Target Properties on completion of the Target Acquisitions. After considering various matters, including the factors set out below, the Manager decided that it was in the interests of Ascott REIT and its Unitholders to proceed with the Finance Lease Arrangements on the basis that: (a) if the Finance Lessees were required to exercise the purchase option by serving six months notice on the Finance Companies, the completion of the acquisition of the legal title to the Relevant France Target Properties can only take place by the end of that financial year or the next financial year (if the period between the date of notice to the year end is less than six months). This will significantly delay the completion of the Target Acquisitions, considerably lengthen the execution timetable and increase the completion risk for the Transactions and the Equity Fund Raising; (b) the rental rates which are payable by the Finance Lessees under the Finance Lease Arrangements are more competitive than the interest rates which the Finance Lessees would be required to pay to financial institutions if Ascott REIT were to incur new borrowings to acquire the legal title to the Relevant France Target Properties; (c) if Ascott REIT were to incur new borrowings from financial institutions to acquire the legal title to the Relevant France Target Properties (instead of assuming the finance leases under the Finance Lease Arrangements), the acquisition of the Relevant France Target Properties will be less yield accretive for the Forecast Period 2010 and Projection Year 2011 due to the expected higher cost of debt referred to in sub-paragraph (b) above; and (d) upon completion of the Transactions, Ascott REIT’s portfolio will comprise 65 serviced residence properties in 23 cities across 12 countries. Based on the unaudited proforma consolidated financial statements of the enlarged Ascott REIT group for FY2009, the net asset value of the Relevant France Target Properties will comprise only approximately 6.0% of the aggregate net asset value of the enlarged Ascott REIT group as at 31 December 2009. In addition, for the three months ending 31 December 2010, the Manager does not expect the Relevant France Target Properties to

25 contribute more than 5.0% of the earnings before interest, tax and amortisation of the enlarged Ascott REIT.

The Divestment The Manager actively manages Ascott REIT’s properties with a view to maximising long-term returns from its property portfolio. The Manager generally holds the properties within Ascott REIT’s portfolio on a long- term basis but in consideration of the possibility that a property in Ascott REIT’s portfolio has reached the optimal stage in its life cycle, the Manager may divest the property and use the proceeds for re-investment in other properties that meet Ascott REIT’s acquisition criteria. The Manager has identified Ascott Beijing as being suitable for divestment so that capital may be realised to acquire higher yielding assets. The Manager had previously engaged a real estate agent to manage a tender bid process for the disposal of Ascott REIT’s interest in Ascott Beijing. During the tender bid process, the Manager received several offers from unrelated third parties. The Manager considered the terms and conditions proposed by the various third-party bidders. However, the negotiations were not concluded as the bids came with a number of conditions which would have taken a protracted period to resolve. The Manager considered that the divestment of Ascott Beijing to TAL would be the preferred option as the overall terms under TAL’s offer were better than those of the shortlisted bidders and would provide greater certainty of execution.

Sale Consideration ($ million) Agreed sale price of Ascott Beijing(1) 301.8 Consolidated net current liabilities (14.2) Aggregate debt, which will be assumed by TAL (73.6) Sale Consideration(2),(3) 214.0

Notes: (1) Represents the Singapore dollar equivalent of RMB1,472.0 million, at the exchange rate of RMB1.00 to $0.205. This is higher than the average of the two independent valuations by Savills HK and HVS, which is $299.0 million. (2) Consists of consideration for the transfer of shares in Hemliner Pte Ltd amounting to $144.6 million and assignment of shareholder’s loans of $69.4 million. (3) The net proceeds from the Divestment of approximately $168.7 million is calculated as Sale Consideration after adding (i) a receipt from inter-company loans repayment of approximately $10.1 million, less (ii) the estimated costs of divestment of approximately $23.0 million and (iii) the estimated cost of unwinding an existing cross currency swap of approximately $32.4 million. The agreed sale price of Ascott Beijing of $301.8 million is higher than the average of the two independent valuations by Savills HK and HVS, which is $299.0 million and is also approximately 66.0% above Ascott Beijing’s valuation as at 30 June 2010 which was $181.8 million. The EBITDA of Ascott Beijing for the financial year ended 31 December 2009 was $4.8 million, implying an EBITDA Yield of 1.6% based on the agreed sale price of $301.8 million. The estimated gain from the Divestment is approximately $106.2 million. The consideration received by Ascott REIT for the Divestment will be used to offset the amount payable to TAL for the Target Acquisitions. Following negotiations between the Manager and TAL, the Trustee, upon the Manager’s recommendations, has entered into the Ascott Beijing Sale and Purchase Agreement with Ascott Investments Pte. Ltd. for the divestment of 100.0% interest in Hemliner Pte Ltd, a Singapore incorporated company, which owns indirectly 100.0% interest in Ascott Beijing. The following table shows, among others, the date of signing of the Ascott Beijing Sale and Purchase Agreement and the expected date of completion for the Divestment: Date of Signing of Property to be Conditional Sale and Expected Date of Purchaser Vendor divested Purchase Agreement Completion On or before 31 December Ascott Investments Pte. Ltd. The Trustee Ascott Beijing 20 August 2010 2010

26 Description of Ascott Beijing Address 108B Jian Guo Road, Chaoyang District Beijing 100022 China Description Ascott Beijing is located in the prime Chaoyang District of Beijing. The property is a 21-storey building with 310 apartment units ranging from one bedroom units to penthouses. The property also offers facilities such as a fully equipped gymnasium, indoor heated swimming pool and business centre services. Serviced Residence Management Company Ascott Property Management (Beijing) Co., Ltd Number of Apartment Units 310 Gross Floor Area 66,417.29 sq m Year of Completion 2001 Title Leasehold estate of 70 years expiring on 7 February 2066 EBITDA: $4.8 million (for the financial year ended 31 December 2009) $2.8 million (for the six months ended 30 June 2010)

Valuations of Ascott Beijing The following table sets out the purchaser of Ascott Beijing, the appraised values, the date of valuation and the independent valuers of Ascott Beijing.

Appraised Agreed Sale Property to Independent Date of Values Price be divested Purchaser Valuer(s) Valuation ($ million) ($ million) Ascott Beijing Ascott Investments Savills HK 12 July 2010 288.8 301.8(1) Pte. Ltd. HVS 1 July 2010 309.1

Note: (1) Represents the Singapore dollar equivalent of RMB1,472 million at the exchange rate of RMB1.00 to $0.205. This is higher than the average of the two appraised values by Savills HK and HVS, which is $299.0 million.

Structure of the Divestment Ascott Beijing is wholly-owned by Hemliner (Beijing) Real Estate Co., Ltd, which is owned by Hemliner Pte Ltd, which in turn is a wholly-owned subsidiary of Ascott REIT. Ascott REIT is proposing to divest its 100.0% effective interest in Ascott Beijing to Ascott Investments Pte. Ltd. through the divestment of 100.0% of the issued shares in Hemliner Pte Ltd.

Principal Terms of the Ascott Beijing Sale and Purchase Agreement The principal terms of the Ascott Beijing Sale and Purchase Agreement include, among others, the following: (a) The Sale Consideration, which shall be adjusted for the consolidated net asset value (which includes the agreed sale price of Ascott Beijing and certain liabilities (as described in paragraphs (b)(v) and (d) below)) as at completion, shall be fully satisfied in cash. (b) The completion of the Divestment is subject to and conditional upon, among others, (i) the receipt by Ascott Investments Pte. Ltd. of such waivers or consents as may be necessary to enable it and/or its nominee(s) to be registered as holder of the shares in Hemliner Pte Ltd;

27 (ii) the approval of Unitholders of the Transactions, the issue of New Units in connection with the Equity Fund Raising and the placement of Private Placement New Units to the CapitaLand Group; (iii) the completion of the Equity Fund Raising; (iv) there being no compulsory acquisition of Ascott Beijing (or any part of the properties or the buildings comprised therein), and no notice of such intended compulsory acquisition having been given, by the government or other competent authority; (v) the termination of the serviced residence management agreement in relation to Ascott Beijing between Hemliner (Beijing) Real Estate Co., Ltd and Ascott Property Management (Beijing) Co., Ltd dated 6 February 2006 on or prior to the completion of the Divestment, with any damages payable by Hemliner (Beijing) Real Estate Co., Ltd to Ascott Property Management (Beijing) Co., Ltd. in relation to such termination being borne solely by the Trustee (on behalf of Ascott REIT), or Hemliner Pte Ltd, or Hemliner (Beijing) Real Estate Co., Ltd; (vi) the refinancing of the moneys advanced by Oversea-Chinese Banking Corporation Limited, Shanghai Branch (“OCBC Shanghai”) to Hemliner (Beijing) Real Estate Co., Ltd under a multi- currency revolving credit agreement dated 23 March 2006 (as amended and supplemented by an amendment letter dated 1 August 2006, an extension and confirmation letter dated 4 September 2006 and a further extension and confirmation letter dated 16 October 2006) (the “OCBC Shanghai Loan”), the discharge of encumbrances in relation thereto (which is expected to take place within one month after completion) and payment by the Trustee (on behalf of Ascott REIT) of all fees and other related costs and expenses incurred in connection with the refinancing of the OCBC Shanghai Loan); (vii) the assignment by the Trustee (on behalf of Ascott REIT) to the purchaser of all loan amounts outstanding under the shareholder loans between the Trustee (on behalf of Ascott REIT) and Hemliner Pte Ltd and all of the rights, title and interest of the Trustee (as trustee of Ascott REIT) in the shareholder loans as at the completion of the Divestment, free of encumbrances; and (viii) OCBC Shanghai confirming, in writing, its consent to the transfer of the sale shares from the Trustee (on behalf of Ascott REIT) to the purchaser (and/or their nominee(s), as the case may be) and agreement not to exercise any right (whether of termination, demand of repayment, acceleration or otherwise) arising by reason of such transfer or change in relation to the OCBC Shanghai Loan. (c) The compensation costs payable in respect of the termination of the serviced residence leases in relation to Ascott Beijing which are subsisting at the time of completion of the Divestment shall be borne by the Trustee (on behalf of Ascott REIT). (d) The compensation costs payable in respect of the termination of the employment contracts of employees employed by Hemliner (Beijing) Real Estate Co., Ltd as at the time of completion of the Divestment shall be borne by the Trustee (on behalf of Ascott REIT). (e) The Trustee (on behalf of Ascott REIT) has provided representations and warranties in respect of Hemliner Pte Ltd and Hemliner (Beijing) Real Estate Co., Ltd with certain limitations on its liability in respect of any breach of warranties, including provisions for an aggregate maximum liability, minimum thresholds for claims and limitation periods. (f) Ascott Investments Pte. Ltd. shall not be obliged to complete the Ascott Beijing Sale and Purchase Agreement unless the Sale and Purchase Agreements are all completed simultaneously.

28 Use of Proceeds Net proceeds from the Divestment of approximately $168.7 million, which will be used to part fund the Target Acquisitions, comprise the following: ($ million) Sale Consideration 214.0 Receipt from inter-company loans repayment 10.1 Estimated costs of divestment (23.0) Estimated cost of unwinding an existing cross currency swap (32.4) Net proceeds from Divestment 168.7

Estimated Divestment Cost The current estimated total costs of the Divestment are approximately $23.0 million as follows: (a) compensation of approximately $5.9 million, which is computed using the average management fees of the last 24 months prior to the termination date of the existing serviced residence management agreement multiplied by the remaining term of the agreement, paid to a subsidiary of TAL for the termination of the existing serviced residence management agreement in accordance with the terms of the agreement; (b) provision for 10.0% withholding tax of approximately $9.4 million to be recognised and paid by Ascott REIT if Hemliner (Beijing) Real Estate Co., Ltd were to be sold; (c) a divestment fee of approximately $1.5 million (being 0.5% of the Enterprise Value (as defined in the Trust Deed)) payable to the Manager in Units pursuant to the Trust Deed; and (d) estimated compensation for termination of lease, staff retrenchment costs, professional and other fees and expenses which amount to approximately $6.2 million.

Rationale for the Transactions The Target Acquisitions constitute a substantial portfolio of serviced residence properties. They represent a rare opportunity for Ascott REIT to acquire a large portfolio of assets and will strengthen Ascott REIT’s presence in Asia Pacific and expand Ascott REIT’s portfolio into the global cities of London and Paris. The Manager believes that there are few substantial serviced residence portfolios in the market and if there are, they are owned by competitors of Ascott REIT and therefore may be difficult to acquire. Accordingly, the Manager is of the view that the Target Acquisitions present Ascott REIT with a rare opportunity to acquire a large portfolio of assets with a total asset value of approximately $1.4 billion which would increase the scale of the portfolio of Ascott REIT. Of the Target Acquistions, approximately 75% of the properties by property value are in the global cities of Singapore, London and Paris. The remaining properties are either in the capital cities of their countries or major commercial and leisure destinations such as Hanoi, Brussels, Berlin, Munich and Barcelona. Based on the pro forma Enlarged Portfolio, approximately 55.0% of the portfolio by asset value (see chart below) will be in the Pan-Asian region and approximately 45.0% will be in Europe. In addition, approximately 76% of the Europe Target Properties by property value are located in London and Paris. Ascott REIT’s portfolio will continue to enjoy significant exposure to the economic growth in key Pan-Asian cities while benefiting from the added diversification to the stable and established markets in Europe, offering Unitholders balanced exposure to both emerging markets and stable economies. The Manager expects that Asia-Pacific will continue to constitute a significant portion of the portfolio.

29 The diagrams below illustrate the geographical diversification by asset value as at 31 December 2009 of (a) the Existing Portfolio and (b) the pro forma Enlarged Portfolio.

Geographical diversification of Ascott REIT’s share of asset value of existing and pro forma enlarged portfolio as at 31 December 2009

Existing Pro Forma Enlarged

Pan-Asia Europe

45%

100% 55%

Ascott REIT’s share: Ascott REIT’s share: $1.56 billion $2.85 billion (1)

Note: (1) The pro forma Enlarged Portfolio excludes Ascott Beijing. The Manager has commissioned Jones Lang LaSalle, the Independent Property Consultant, to prepare a report on the serviced residence sector in, among others, Singapore, Vietnam, France, United Kingdom, Belgium, Germany and Spain, each of which is a country which the Manager believes offers growth opportunities and where Ascott REIT has and/or proposes to establish a presence. The Target Acquisitions are located in: (a) Singapore, a key Asian financial centre; (b) Hanoi, the capital city of Vietnam; (c) London, the capital city of United Kingdom and a key global financial centre; (d) Paris, the capital city and commercial centre of France and one of the most visited cities in the world; (e) the French regional cities of Marseille, Lyon, Cannes, Montpellier, Lille and Grenoble which are amongst the largest cities in France after Paris; (f) Brussels, the capital city of Belgium and popularly known as the capital city of the European Union; (g) Berlin, the capital city of Germany, a leading global conference destination and the most visited city in Germany; (h) Munich, a leading trade fair centre and leisure destination and the second most visited city in Germany; and (i) Barcelona, a major commercial and leisure centre of Spain. According to Jones Lang LaSalle, each of the markets in which the Target Properties are located suffered adverse effects during the financial crisis of late 2008 and early 2009. However, Jones Lang LaSalle notes that each of the Target Properties is located in either capital cities or major cities that are centres for business, tourism or both, in their respective countries. Generally, Jones Lang LaSalle notes that the outlook for these markets is positive in the medium to long-term. For further information, please refer to Appendix H of this Offer Information Statement.

The Target Acquisitions would enable Ascott REIT to grow through the acquisition of a portfolio of serviced residences from TAL which would enhance the diversification of Ascott REIT’s portfolio across geographies, and property and economic cycles. The Asia Target Properties are located in two countries in which Ascott REIT already operates, namely, Singapore and Vietnam and are an extension of Ascott REIT’s existing business. The Europe Target

30 Properties are largely located in London and Paris, which are global cities in Europe and are also stable and established markets. The Target Acquisitions will further enhance the diversification of Ascott REIT’s portfolio in terms of geographical spread and across property and economic cycles. In line with the Manager’s investment strategy of investing in a diversified portfolio of strategically-located, high-quality serviced residences, the Target Acquisitions will introduce new markets with the addition of France, United Kingdom, Belgium, Germany and Spain, and further increase its presence in Singapore and Vietnam. The France Target Acquisitions, the UK Target Acquisitions and the Germany Target Acquisitions mark an entry into an attractive established serviced residence market in Europe. Following the completion of the Target Acquisitions and Divestment, the Manager expects that Asia Pacific will continue to constitute a significant portion of the portfolio. With the Target Acquisitions, Ascott REIT’s Enlarged Portfolio is expected to be further diversified across the Pan-Asian Region and Europe in 23 cities across 12 countries from the current presence in the Pan- Asian Region of 11 cities across seven countries. The diagrams below illustrate the geographical diversification of the Enlarged Portfolio by asset values as at 31 December 2009 (assuming the Transactions were completed on 31 December 2009) and Gross Profit contribution for the year ended 31 December 2009 (assuming the Transactions were completed on 1 January 2009). Geographical division of Ascott REIT’s share of asset values as at 31 December 2009

Existing Pro Forma Enlarged

Germany Australia 3% Spain Indonesia 3% Belgium 2% Singapore 5% 2% 19% Philippines Singapore UK 9% 27% 16%

Vietnam China 12% 7%

Japan France 11% 22% China Japan 24% Vietnam 20% Australia Philippines 8% 2%Indonesia 5% 3% Ascott REIT’s share: $1.56 billion Ascott REIT’s share: $2.85 billion (1)

Note: (1) The pro forma Enlarged Portfolio excludes Ascott Beijing.

Geographical division of Ascott REIT’s share of Gross Profit for the year ended 31 December 2009

Existing Pro Forma Enlarged Germany Australia 1% Spain 2% Belgium 2% Singapore Indonesia Singapore 2% 11% 9% 18% UK China 15% 6%

Philippines Japan 16% 8% China 17%

France Vietnam 25% 15%

Vietnam 24% Japan Australia Philippines 14% 1% Indonesia 9% 5% Gross Profit: $76.3 million Gross Profit: $144.6 million (1)

Note: (1) The pro forma Enlarged Portfolio excludes Ascott Beijing.

31 The Target Properties, which are currently owned and managed by TAL, which is also the sole shareholder of the Manager, are expected to be readily integrated with Ascott REIT’s Existing Portfolio and benefit from TAL’s operating track record and network. As the Target Properties are currently owned by TAL, which is also the sole shareholder of the Manager, the Target Properties are expected to be readily integrated with Ascott REIT’s Existing Portfolio. TAL, from which Ascott REIT would be acquiring the Target Properties, has a 26-year track record and operates serviced residences under brands that enjoy global recognition. In addition to “Ascott” and “Somerset” brands, TAL also operates properties under the “Citadines” brand. Citadines is an established hospitality brand in Europe with a 26-year history since commencing operations in France in 1984. The properties operating under the “Citadines” brand provide corporate executives with vibrant, urban lifestyle residences. The brand names used by the Target Properties include the “Somerset” brand which is used by a number of properties owned by Ascott REIT and 27 of the Target Properties are operated under the “Citadines” brand which has a style and market positioning consistent with the Ascott and Somerset brands and is often marketed in conjunction with those brands. TAL operates on a large scale in Asia and Europe, which enhances its ability to attract talent, develop management systems and achieve economies of scale. All owners of properties managed by TAL, including Ascott REIT, benefit from a full range of corporate services, including human resources, corporate sales and marketing, corporate advertising, central reservations system, centralised purchasing, building system maintenance and financial administration which are not available to independent owners. As the Manager is a wholly-owned subsidiary of TAL, the operational and accounting systems in place to manage the Target Properties are the same as those employed by the Manager in respect of Ascott REIT’s existing assets. The Manager believes that its familiarity with TAL operating and management systems and similar branding will mean that integration of the Target Acquisitions will be more efficient and less costly than for serviced residences acquired from a third party.

The Europe Target Acquisitions are expected to increase the income stability of Ascott REIT through the long-term Master Leases in respect of 19 of the Europe Target Properties and seven of the Europe Target Properties which are on SR Management Agreements that provide for a minimum guaranteed NOP per annum. Following the completion of the Target Acquisitions, the risk profile of Ascott REIT is expected to be reduced through greater stability of income in respect of the 26 Europe Target Properties under Master Leases and SR Management Agreements subject to a minimum guaranteed NOP per annum in a number of ways, including the following: (a) the Europe Target Properties are expected to contribute approximately 45.0% of the total annualised EBITDA of the Enlarged Ascott REIT Group for the three months ending 31 December 2010 (excluding a one-time gain from the Divestment and any change in fair value of serviced residence properties) based on the Profit Forecast and subject to the qualifications, assumptions and limitations set forth therein. The Master Leases have remaining terms of between six and 19 years. In addition, the SR Management Agreements have remaining terms of between five and 10 years.

32 The diagrams below illustrate the contribution to the forecast total EBITDA of (a) the lease arrangements in respect of Ascott REIT’s Existing Portfolio and (b) the Master Leases and SR Management Agreements of the Europe Target Properties in respect of the Enlarged Portfolio for the annualised three-month period ending 31 December 2010.

Annualised EBITDA based on the forecast EBITDA for the three months ending 31 December 2010

Existing Pro Forma Enlarged (1)

72% Non-Master Lease and 72.8 non-minimum guaranteed income

Master Lease and minimum 3.1 guaranteed income in Asia (3) Non-Master Lease and non-minimum 77.1 Master Lease and minimum guaranteed income 62.1 guaranteed income in Europe (4)

Master Lease and minimum guaranteed income in Asia (3) 3.1 FY2010 annualised EBITDA: FY2010 annualised EBITDA (2): $80.2 million $138.0 million

Notes: (1) Excludes contribution from Ascott Beijing. (2) Excludes one time gain from Divestment and change in fair value of serviced residence properties. (3) EBITDA guarantee from Somerset West Lake, Hanoi ($2.1 million) and Master Lease income from Somerset Salcedo, Makati ($1.0 million). (4) Master Lease income from 19 Europe Target Properties ($38.4 million) and minimum guaranteed NOP from 7 Europe Target Properties ($23.7 million). (b) with the inclusion of the 17 France Target Properties and two Germany Target Properties under Master Leases, the Target Acquisitions will increase the Apartment Rental Income by length of stay of the properties within Ascott REIT’s portfolio from seven months to approximately 24 months based on Ascott REIT’s Apartment Rental Income for FY2009. The diagrams below illustrate the Apartment Rental Income by length of stay of (a) Ascott REIT’s Existing Portfolio and (b) the Enlarged Portfolio for the year ended 31 December 2009.

Apartment Rental Income by length of stay for existing and pro forma enlarged Ascott REIT group for the year ended 31 December 2009

Existing Pro Forma Enlarged

12%

25% 30%

38% 19%

13%

19% 23% 8% 13%

Apartment Rental Income by length of stay: Apartment Rental Income by length of stay: ~7 months ~24 months

Less than 1 week Less than 1 month 1 to 6 months 6 to 12 months More than 12 months Master Lease > 8 years

Note: (1) The Master Leases for the 17 France Target Properties and the two Germany Target Properties have remaining terms of between six to 19 years. For the year ended 31 December 2009, for the pro forma Enlarged Portfolio, the average expiry of all of the leases is more than eight years weighted by the Master Lease Income from each Property.

33 The Divestment would enable Ascott REIT to unlock value in an asset which the Manager believes has reached the optimal stage of its life cycle so that capital may be realised to acquire higher yielding assets. The EBITDA of Ascott Beijing for the financial year ended 31 December 2009 was $4.8 million, implying an exit EBITDA Yield of 1.6% based on the agreed sale price of $301.8 million which is attractive in the Manager’s view. The agreed sale price of Ascott Beijing is approximately 66.0% above Ascott Beijing’s valuation as at 30 June 2010 which was $181.8 million. The estimated gain from the Divestment is expected to be approximately $106.2 million after taking into account the costs of the Divestment. The Manager believes the Divestment will unlock the value of Ascott Beijing at the optimal stage of its life cycle at an attractive valuation, realising capital that will partially fund the Target Acquisitions.

The Transactions are expected to be yield accretive and are expected to increase the distribution per Unit to Unitholders for the Forecast Period 2010 and the Projection Year 2011. The Manager expects that the Transactions will improve the DPU to Unitholders due to the yield accretive nature of the Transactions. To illustrate the yield accretive nature of the Transactions, Equity Fund Raising and the Debt Financing, Tables A and B below show Ascott REIT’s forecast annualised DPU for the Forecast Period 2010 and the Projection Year 2011 in relation to: (a) the Existing Portfolio; and (b) the Enlarged Portfolio, based on a range of illustrative issue price of $1.07 per New Unit to $1.23 per New Unit. Tables A and B show the accretion after the completion of the Transactions, Equity Fund Raising and Debt Financing. For the range of illustrative issue prices shown below, as the number of New Units is assumed to be 487,518,000, the total equity raised under the Equity Fund Raising varies. It is assumed that the balance of the financing required is raised under the Debt Financing. The following tables should be read together with Ascott REIT’s Forecast Consolidated Statement of Total Return and Distribution for the Forecast Period 2010 and the Projection Year 2011 as well as the accompanying “Cautionary Language”, “Assumptions” and “Sensitivity Analysis” in Appendix E of this Offer Information Statement, and the report of KPMG (the “Independent Accountants”) in Appendix F of this Offer Information Statement and the section “Risk Factors” in this Offer Information Statement. (See the risk factors “The assumptions set forth in the Profit Forecast and Profit Projection are inherently uncertain and are subject to significant business, economic, financial, regulatory and competitive risks and uncertainties” and “The actual performance of Ascott REIT and the Enlarged Portfolio will differ from the forecasts and projections set forth in this document and such differences may be material” under the section titled “Risk Factors” in this Offer Information Statement.)

34 Table A: Forecast Period 2010 Aggregate (2) Existing Portfolio Enlarged Portfolio Leverage of Equity Fund Total Debt Annualised Annualised Annualised Annualised Enlarged Ascott Issue Raising(1) Financing DPU Distribution DPU Distribution Accretion REIT Group(3) Price ($) ($ million) ($ million) (cents) yield (%) (cents) yield (%) (%) (%) 1.23 599.6 77.3 7.21 5.86 7.48 6.08 + 3.7 37.9 1.21 589.9 87.1 7.21 5.96 7.45 6.16 + 3.3 38.3 1.19 580.1 96.8 7.21 6.06 7.41 6.23 + 2.8 38.6 1.17 570.4 106.6 7.21 6.16 7.38 6.31 + 2.3 39.0 1.15 560.6 116.3 7.21 6.27 7.35 6.39 + 1.9 39.3 1.13 550.9 126.1 7.21 6.38 7.31 6.47 + 1.4 39.6 1.11 541.1 135.8 7.21 6.50 7.28 6.56 + 1.0 39.9 1.09 531.4 145.6 7.21 6.61 7.25 6.65 + 0.5 40.3 1.07 521.6 155.3 7.21 6.74 7.21 6.74 + 0.0 40.6

Table B: Projection Year 2011 Aggregate Leverage of (2) Equity Fund Total Debt Existing Portfolio Enlarged Portfolio Enlarged Ascott Issue Raising(1) Financing DPU Distribution DPU Distribution Accretion REIT Group(3) Price ($) ($ million) ($ million) (cents) yield (%) (cents) yield (%) (%) (%)

1.23 599.6 77.3 7.39 6.01 7.88 6.41 + 6.6 37.9 1.21 589.9 87.1 7.39 6.11 7.84 6.48 + 6.2 38.3 1.19 580.1 96.8 7.39 6.21 7.81 6.56 + 5.7 38.6 1.17 570.4 106.6 7.39 6.32 7.78 6.65 + 5.2 39.0 1.15 560.6 116.3 7.39 6.43 7.74 6.73 + 4.8 39.3 1.13 550.9 126.1 7.39 6.54 7.71 6.82 + 4.3 39.6 1.11 541.1 135.8 7.39 6.66 7.68 6.92 + 3.9 39.9 1.09 531.4 145.6 7.39 6.78 7.64 7.01 + 3.5 40.3 1.07 521.6 155.3 7.39 6.91 7.61 7.11 + 3.0 40.6

Notes: (1) Assuming 487,518,000 New Units are raised in the Equity Fund Raising. (2) After giving effect to the Transactions,the Equity Fund Raising and the Debt Financing assumed to be completed on 1 October 2010. (3) Estimated as at 1 October 2010, following completion of the Transactions, the Equity Fund Raising and Debt Financing. Assuming an illustrative issue price of $1.15 per New Unit and 487,518,000 New Units are issued under the Equity Fund Raising, Ascott REIT’s forecast annualised DPU for the Forecast Period 2010 and the Projection Year 2011 upon completion of the Transactions, Equity Fund Raising and the Debt Financing is approximately 7.35 cents and 7.74 cents, respectively. This represents a DPU accretion of approximately 1.9% and 4.8% over the forecast annualised DPU of 7.21 cents and 7.39 cents for the Forecast Period 2010 and the Projection Year 2011, respectively, based on the Existing Portfolio for the same periods.

The absolute size of Ascott REIT’s asset base and free float would be substantially increased as a result of the Transactions and the Equity Fund Raising and as a result may raise the profile of Ascott REIT among global investors and enlarge its Unitholder base. Following the completion of the Transactions, Ascott REIT’s asset base is expected to increase by approximately $1.3 billion or more than 80%. Assuming that Ascott REIT issues 487,518,000 New Units, the number of Units in issue will increase by approximately 78.7% (based on 619.6 million Existing Units) and on an illustrative basis, the market

35 capitalisation of Ascott REIT will increase from $712.5 million as at the Latest Practicable Date to approximately $1,273.2 million assuming that all Units have a price of $1.15 per Unit. In addition, assuming that the CapitaLand Group subscribes for such number of New Units to maintain its pre-Preferential Offering unitholding percentage, the free float of Ascott REIT is expected to increase from $372.3 million as at the Latest Practicable Date to approximately $665.3 million upon completion of the Equity Fund Raising. The increased free float of Ascott REIT has the potential to enhance the liquidity of the Units which the Manager believes may raise the profile of Ascott REIT among investors. The Manager believes that increasing Ascott REIT’s market capitalisation would enhance Ascott REIT’s competitive positioning with respect to its acquisition growth strategy. The diagram below illustrates the increase in free float of Ascott REIT following the completion of the Equity Fund Raising based on the assumptions described above.

Free float of Ascott REIT (In $ millions)

665

79%

372

As at Latest Practicable Date Post-completion of Equity Fund Raising

36 RISK FACTORS Unitholders should consider carefully, together with all other information contained in this Offer Information Statement, the risk factors described below before making an investment decision in relation to the New Units as these may, among others, adversely affect the level of Ascott REIT’s distributable income. The risk factors below are intended to highlight the risks relating to the Target Acquisitions and the Equity Fund Raising that Unitholders should consider. These risk factors are not intended to be exhaustive and, in particular, are not intended to repeat the risk factors set out in the prospectus dated 6 March 2006 in connection with the listing of Ascott REIT on the SGX-ST (the “Prospectus”) and the offer information statement dated 12 March 2007 (the “2007 Offer Information Statement”), certain of which may continue to be applicable to Ascott REIT. Details of some of the risk factors relating to the Existing Portfolio which continue to be applicable to Ascott REIT can be found in the Prospectus and the 2007 Offer Information Statement. These risk factors have been broadly classified as relating to (1) the financial information in this Offer Information Statement, (2) the Target Acquisitions, (3) the Target Properties and the Existing Portfolio, (4) Ascott REIT’s operations, (5) the countries in which the Properties with the Enlarged Portfolio are located and (6) an investment in the Units.

1) RISKS RELATING TO THE FINANCIAL INFORMATION IN THIS OFFER INFORMATION STATEMENT The assumptions set forth in the Profit Forecast and Profit Projection are inherently uncertain and are subject to significant business, economic, financial, regulatory and competitive risks and uncertainties The forecast and projections set forth in the Profit Forecast and Profit Projection include a forecast of Ascott REIT’s operating results and distributions for the Forecast Period 2010 and the Projection Year 2011. Ascott REIT’s financial forecast and projections are subject to a number of assumptions which are set forth in the Profit Forecast and Profit Projection. Although the forecast and projections have been prepared after due and careful deliberation by the Manager, the assumptions underlying the forecast and projections are inherently uncertain and are subject to significant business, economic, regulatory and competitive risks, uncertainties and contingencies, many of which are outside Ascott REIT’s control. In addition, Ascott REIT’s revenue is dependent on a number of factors, including the financial stability of Ascott REIT’s customers and general economic conditions, which may decrease for a number of reasons. This may adversely affect Ascott REIT’s ability to achieve the forecast and projected distributions as some or all of the events and circumstances assumed may not occur as expected, or events and circumstances that are not currently anticipated may arise. Actual cash flow may be materially different from the forecast and projected distributions. There is no assurance that the assumptions will be realised. If Ascott REIT does not achieve the forecast and projected operating results, Ascott REIT may not be able to make the expected Unitholder distributions, in which case, the market price of the Units may decline materially.

The actual performance of Ascott REIT and the Enlarged Portfolio will differ from the forecasts and projections set forth in this document and such differences may be material Ascott REIT’s revenue is and/or will be dependent, as the case may be, on rental income from the Enlarged Portfolio, which may decrease for a number of reasons including reduced demand for serviced residences and delays in rental payments by tenants. This may adversely affect Ascott REIT’s ability to achieve the forecast and projected distributions as some or all of the events and circumstances assumed may not occur as expected, or events and circumstances may arise which are not currently anticipated. Actual results will differ from the forecasts and projections and these differences may be material. While the Manager currently expects to meet its forecast and projected distribution levels, no assurance can be given that the assumptions will be realised and the actual distributions will be as forecast and projected.

The pro forma financial information included in this document is not based on audited financial statements of the companies that own the Target Properties The pro forma financial information included in this document is based on the audited financial statements of the Group, Citadines Singapore Mount Sophia Pte. Ltd. and Hemliner Pte Ltd, restated financial statements of Somerset Hoa Binh Joint Venture Company Limited, Hemliner

37 (Beijing) Real Estate Co., Ltd, Résidence des Deux Gares (“Residence des 2 Gares”), Place de Metz-Grenoble (“Place de Metz”), S.C.I. Citadines Paris Louvre (“SCI Citadines Paris Louvre”), Oriville, Citador Olivaer Platz GmbH & Co. KG, Citadines Munich Arnulfpark GmbH & Co. KG, FBM London Limited, Citadines Holborn CI Limited, FBM Belgique, Immobiliere Toisor and unaudited management financial information of Reo Saint-Didier (“Reo St Didier”), Société Civile Immobiliére Résidence Lyon (“SCI Lyon”), Société Civile Immobiliére Résidence Italie (“SCI Résidence Italie”), S.N.C. 14bis/16/18 Avenue Rachel — 75018 Paris (“SNC Rachel”), Société Civile Immobiliére Résidence Grenelle (“SCI Grenelle”), SCI Montpellier Antigone (“SCI Montpellier”), S.C.I. Marseille (“SCI Marseille”), S.C.I. Austerlitz (“SCI Austerlitz”), S.C.I. République (“SCI République”), S.C.I. Montparnasse (“SCI Montparnasse”), S.C.I. Cannes Carnot (“SCI Cannes”), S.C.I. SODI (“SCI Sodi”), Citagrep Limited and Eurimeg Espana, S.A. for the financial year ended 31 December 2009 and the available financial information in respect of the Transactions. A significant portion of this underlying financial information is unaudited and has not been subject to the review procedures normally associated with an audit. There can be no assurance that such information reflects generally accepted accounting principles or has been prepared on a basis consistent with audited financial statements of the relevant entities or the Group as a whole and, as such, you should not place undue reliance on such information or the pro forma financial information.

The selected financial data presented in the section titled “Discussion of the Historical Results of Operations and Financial Condition of Ascott REIT” in this Offer Information Statement is not comparable to the financial information presented elsewhere in this document The selected financial data presented in the section titled “Discussion of the Historical Results of Operations and Financial Condition of Ascott REIT” is based on, and should be read together with, Ascott REIT’s actual historical Financial Statements which are incorporated in this document by reference to certain information presented on Ascott REIT’s website which can be accessed at www.ascottreit.com. Such financial data is based on Ascott REIT’s actual historical financial results without giving effect to the Transactions, the Equity Fund Raising and the Debt Financing and is not based on the Unaudited Pro Forma Consolidated Financial Information presented in Appendix C of this Offer Information Statement or any financial information presented elsewhere in this Offer Information Statement. For this reason, the selected financial data presented in the section titled “Discussion of the Historical Results of Operations and Financial Condition of Ascott REIT” is not comparable to the financial data presented elsewhere in this Offer Information Statement.

Significant differences exist between Singapore Financial Reporting Standards (“SFRS”) and other accounting principles, such as US GAAP and IFRS, which may be material to investors’ assessment of Ascott REIT’s financial condition The financial data presented in this Offer Information Statement has been prepared in accordance with the Statement of Recommended Accounting Practice (“RAP”) 7 — Reporting Framework for Unit Trusts, which generally comply with principles relating to recognition and measurement of SFRS. There are significant differences between SFRS and other accounting principles, such as IFRS and US GAAP.The Manager has not attempted to explain those differences or quantify their impact on the financial data presented herein and urges you to consult your own advisors regarding such differences and their impact on our financial data. Accordingly, the degree to which the SFRS financial statements and financial information presented in this document will provide meaningful information is entirely dependent on the reader’s level of familiarity with Singapore accounting practices. Any reliance by persons not familiar with Singapore accounting practices on the financial disclosures presented in this document should accordingly be limited.

2) RISKS RELATING TO THE TARGET ACQUISITIONS Ascott REIT does not have legal titles to certain France Target Properties that are subject to finance leases The Relevant France Target Properties, namely, Citadines Montpellier Antigone, Citadines Marseille Castellane, Citadines Austerlitz, Citadines Voltaire République, Citadines Maine- Montparnasse, Citadines Cannes Carnot and Citadines Didot Alésia, are subject to finance

38 leases entered into with Financing Companies. Under French law, a finance lease is a contract by which a financing company that owns the property grants the lessee a long term lease on the property, with an option to purchase the property at the end of the term. The Financing Companies remain the owner of the Relevant France Target Properties during the term of the lease and the lessee only has an occupancy right, with an option to become the owner at the end of the term. Ascott REITaccordingly does not have legal title to the Relevant France Target Properties that are subject to finance leases and would thus not have the usual rights and benefits of a property owner, including right to retain the fixtures added during the term of the lease, right to deal with or sublet the property freely and benefit of any builders’ guarantee and warranty in relation to the Relevant France Target Properties. In addition, should Ascott REIT be in breach of any terms or conditions of the relevant finance lease or if payment is not promptly made in relation to the relevant finance lease, that relevant finance lease may be terminated. In the event where the relevant Finance Company is in liquidation and it is necessary for the liquidation proceedings that the lease be terminated and where such termination would not prejudice the lessee, the relevant finance lease may be terminated. In the event of such termination, Ascott REIT’s financial condition and results of operations may be adversely affected.

Difficult conditions in the global capital markets may have a material adverse effect on Ascott REIT’s business and results of operations or cause Ascott REIT to experience limited availability of funds The securities markets are influenced by economic developments and volatility in securities markets in other countries. Investor reaction to developments in one country may have an adverse effect on the market price of securities of companies located in other countries. For instance, the economic downturn in the US and several European countries in the past two years adversely affected market prices in the world’s securities markets. Financial markets in the US, Europe and Asia have been experiencing extreme disruption in the past two years, including among others, volatility in security prices, severely diminished liquidity and credit availability, rating downgrades of certain investments and declining valuations of others. These and other related events, such as the collapse of a number of financial institutions, have had and continue to have a significant adverse impact on the securities markets. Negative economic developments, such as rising fiscal or trade deficits, or a default on sovereign debt, in other countries may affect investor confidence and cause increased volatility in securities. These factors could have a series of effects on Ascott REIT’s business, which may have a material adverse effect on the results of operations. Ascott REIT may have difficulty accessing the financial markets, which could make it more difficult or expensive to obtain funding in the future. There can be no assurance that Ascott REITwill be able to raise funds at a reasonable cost which could have a material adverse effect on Ascott REIT’s income, financial condition and results of operations.

Ascott REIT’s acquisition of the Target Properties may be subject to risks associated with the acquisition of properties While the Manager believes that reasonable due diligence investigations have been conducted with respect to the TargetProperties and will be conducted with respect to any new properties prior to their acquisition by Ascott REIT, there can be no assurance that the Target Properties or any new properties will not have defects or deficiencies including latent defects, requiring significant capital expenditure, repair or maintenance expenses, or payment or other obligations to third parties. The experts’ reports and the sellers’ statutory or contractual representations, warranties and indemnities that the Manager has relied upon in relation to the Target Properties or will rely upon in relation to any new properties as part of its due diligence investigations may contain inaccuracies and deficiencies, as certain building defects and deficiencies may be difficult or impossible to ascertain where such defects are latent or due to the limitations inherent in the scope of the inspections, the technologies or techniques used and other factors. In addition, laws and regulations (including those in relation to real estate) may have been breached and certain regulatory requirements in relation to the Target Properties or any new properties may not have been complied with, which the Manager’s due diligence investigations did not uncover. As a result, Ascott REIT may incur financial or other obligations in relation to such breaches or non-compliance.

39 Furthermore, existing leases with respect to the Target Properties may expose Ascott REIT to contractual liability. For example, under leases with respect to the certain of the French Target Properties, Ascott REIT may be financially responsible for modifications to the premises that are required by law.

Any breach by (a) the Master Lessees and TAL of their obligations under the Master Leases or (b) the SR Management Companies and TAL or their obligations under the SR Management Agreements may have an adverse effect on Ascott REIT Citadines SA is the Master Lessee of each of the France Target Properties and Citadines Betriebsgesellschaft mbH is the Master Lessee of each of the Germany Target Properties. Net rental payments in respect of the France Target Properties and the Germany Target Properties will depend on the ability of Citadines SA and Citadines Betriebsgesellschaft mbH to make rental payments. A downturn in the business of the Master Lessees may weaken their financial condition and result in the Master Lessees’ failure to make timely rental payments or default under the Master Leases. Any non-payment of the rent by the Master Lessees or failure by TAL to pay and satisfy the Trustee and/or the Master Lessor of outstanding sums which are due to the Master Lessor under the Master Leases, may have an adverse effect on the financial condition of Ascott REITand its level of distributable income. In addition, any failure by the SR Management Companies to pay the relevant Property Holding Companies the shortfall in actual NOP and the minimum guaranteed NOP in accordance with the terms of the SR Management Agreements or failure by TAL to pay and satisfy the Trustee and/or the relevant Property Holding Companies of outstanding sums owing by the SR Management Companies to the relevant Property Holding Companies, may have an adverse effect on the financial condition of Ascott REIT and its level of distributable income. Based on the Profit Forecast, the Master Leases and the minimum guaranteed income under the SR Management Agreements are expected to contribute approximately 45.0% of the total annualised EBITDA of the Enlarged Ascott REIT Group for the three months ending 31 December 2010. Moreover, failure by the Master Lessees to maintain the relevant Target Properties in a good state of tenantable repair and condition could have an adverse impact on the physical condition of the relevant Target Properties, rendering them unattractive to existing end- users and potential end-users. The performance of the Master Lessees’ other businesses could also have an impact on their ability to make rental payments to Ascott REIT. Factors that affect the ability of the Master Lessees to meet their obligations include, but are not limited to their financial position and the local economies in which they have business operations.

The Master Lessees may not renew a number of the Master Leases In respect of certain Master Leases, namely the Master Leases in relation to Citadines Paris Austerlitz, Citadines Paris Didot Alésia, Citadines Maine Montparnasse, Citadines Paris Voltaire République, Citadines Marseille Castellane, Citadines Montpellier Antigone and Citadines Cannes Carnot, TAL has provided an undertaking to the Trustee to procure that Citadines SA will renew such Master Leases expiring in 2011 and waive its option to terminate at the end of the first three year period of the renewed Master Leases. There is no assurance that the Master Lessees in relation to these properties will renew these Master Leases upon expiry following the operation of the TAL Undertaking. If these Master Leases are terminated, Ascott REIT may not be able to find a suitable purchaser or a suitable replacement master lessee or tenant, as a result of which Ascott REIT may lose a significant source of revenue. In any event, it may not be possible to replace the Master Lessees immediately upon the termination of the Master Leases and this may lead to temporary vacancy. The termination of any of these Master Leases, may have a material adverse effect on Ascott REIT’s financial condition.

40 3) RISKS RELATING TO THE TARGET PROPERTIES AND THE EXISTING PORTFOLIO Ascott REIT’s income from Somerset Azabu Tokutei Mokuteki Kaisha, Somerset Roppongi Tokutei Mokuteki Kaisha and Zenith Residences To-kutei Mokuteki Kaisha may be subject to a higher withholding tax rate in Japan Pursuant to the applicable tax treaty between Singapore and Japan, the dividends which a Singapore incorporated company receives from a tokutei mokuteki kaisha are subject to a reduced withholding tax rate of 5.0% for so long as the Singapore incorporated company is the beneficial owner of at least 25.0% of the voting shares of the tokutei mokuteki kaisha during the six-month period immediately before the end of the accounting period for which dividends are distributed. The dividends receivable by (i) Somerset Roppongi (Japan) Pte. Ltd. (“SRJPL”) from Somerset Roppongi Tokutei Mokuteki Kaisha (“Somerset Roppongi TMK”), (ii) Somerset Azabu East (S) Pte. Ltd. from Somerset Azabu East Tokutei Mokuteki Kaisha (“SAE TMK”) and (iii) Zenith Residences Tokyo (S) Pte Ltd (“Zenith (S) PL”) from Zenith Residences Tokyo Tokutei Mokuteki Kaisha (“Zenith TMK”), are, as at the Latest Practicable Date, subject to the reduced withholding tax rate of 5.0%. There can be no assurance that Ascott REIT will benefit from the reduced withholding tax rate of 5.0% on the dividend income receivable from Somerset Roppongi TMK, SAE TMK and Zenith TMK. The applicability of the reduced withholding tax rate of 5.0% to SRJPL, Somerset Azabu East (S) Pte. Ltd. and Zenith (S) PL is subject to the tax authorities in Japan recognising SRJPL, Somerset Azabu East (S) Pte. Ltd. and Zenith (S) PL as the beneficial owners of their shares in the respective tokutei mokuteki kaisha. If the tax authorities in Japan were to deem that Ascott REIT is the beneficial owner of SRJPL’s shares in Somerset Roppongi TMK, Somerset Azabu East (S) Pte. Ltd.’s shares in SAE TMK and Zenith (S) PL’s shares in Zenith TMK, the reduced withholding tax rate of 5.0% on dividends received by SRJPL from Somerset Roppongi TMK, by Somerset Azabu East (S) Pte. Ltd. from SAE TMK and by Zenith (S) PL from Zenith TMK may no longer be applicable. Such dividends may then be subject to the higher domestic withholding tax rate which, as at the Latest Practicable Date, is currently 20.0%. This would reduce Ascott REIT’s income from Somerset Roppongi TMK, SAE TMK and Zenith TMK, which may in turn adversely affect Ascott REIT’s income, financial condition and results of operations.

The proportionate distributions received by Ascott REIT from Somerset Chancellor Court, Ho Chi Minh City, Somerset Ho Chi Minh City and Somerset Grand Hanoi will be diluted in the future Somerset Chancellor Court, Ho Chi Minh City is wholly-owned by Saigon Office and Serviced Apartment Company Limited, a 67.0% owned subsidiary of East Australia Trading Company (S) Pte Ltd (“EATC(S)”). Somerset Ho Chi Minh City is owned by Mekong-Hacota Joint Venture Company Limited (“Mekong-Hacota”), a 69.0% owned subsidiary of Ascott Residences Pte Ltd (“Ascott Residences”). Somerset Grand Hanoi is owned by Hanoi Tower Center Company Limited, a 76.0% owned subsidiary of Burton Engineering Pte Ltd (“Burton Engineering”). EATC(S), Ascott Residences and Burton Engineering (together the “Vietnam Property Holding Companies”) are wholly-owned by the Trustee. The remaining shareholding interests in Saigon Office and Serviced Apartment Company Limited, Mekong-Hacota and Hanoi Tower Center Company Limited (together, the “Vietnam Property Companies”) are owned by unrelated third parties. Ascott REIT’s interests in the Vietnam Property Companies are held under the terms of a joint venture arrangements (each a “Vietnam Properties JVA”) with each of these unrelated third parties. Under the terms of these Vietnam Properties JVAs, the net profits of each of the Vietnam Property Companies, after the fulfillment of certain statutory financial obligations and the payment of other amounts due, are to be distributed to the shareholders of Vietnam Property Companies in certain proportions during different periods in accordance with the terms of the relevant Vietnam Properties JVA and/or the applicable investment licence under which the Vietnam Property Companies operate. In relation to EATC(S), Ascott REIT is entitled to 67.0% of the distributed profits during the period for which loan capital and interest is outstanding. Ascott REIT’s entitlement to the distributed

41 profits will decrease to 60.0% following the repayment of loan capital and interest and further decrease to 40.0% from the 31st to 48th year from the date of issuance of the investment license. In relation to Ascott Residences, Ascott REIT owns 69.0% of the legal capital in Mekong-Hacota. From the 19th year of the date of issuance of the investment license, the unrelated joint venture partner in Mekong-Hacota has a right to acquire approximately 0.9% of the legal capital in Mekong-Hacota every year until it owns 43.0% of the legal capital in Mekong-Hacota (in the 32nd year), whereupon the legal capital of Mekong-Hacota owned by Ascott Residences will decrease to 57.0%. Consequently, the distributed profits that Ascott REIT is entitled to receive will decrease from the 19th year to the 32nd year. In relation to Burton Engineering, Ascott REIT is entitled to 76.0% of the distributed profits in the first 25 years after fulfilling all financial obligations to the Government of Vietnam and other obligations. From the 26th to 35th year, Ascott REIT is entitled to 70.0% of the distributed profits. From the 36th to the 45th year, Ascott REIT is entitled to 50.0% of the distributed profits. The decreasing proportion of distributed profits that each of the Vietnam Property Holding Companies is entitled to for the duration of the relevant Vietnam Properties JVA will adversely affect each of Ascott REIT’s financial condition and results of operations.

There is no assurance that the other joint venture partners of the existing property holding companies or the holding company of the existing property holding companies or the Property Holding Company of the Vietnam Target Property will cooperate on matters concerning these companies Several of the existing property holding companies, such as PT Ciputra Liang Court, Mekong- Hacota, Hanoi Tower Center Company Limited, Saigon Office and Serviced Apartment Company Limited and Westlake Development Company Limited and the Property Holding Company of the Vietnam Target Property, Somerset Hoa Binh Joint Venture Company Limited, which own Somerset Grand Citra, Jakarta, Somerset Ho Chi Minh City, Somerset Grand Hanoi, Somerset Chancellor Court, Somerset West Lake and the Vietnam Target Property, respectively, are not wholly-owned by the Trustee. Accordingly, the Trustee does not have sole discretion to manage these properties through the property companies. Under the relevant shareholders’ agreements or joint venture agreements (as the case may be) relating to the property companies that are not wholly-owned by the Trustee, certain matters, such as amending the joint venture agreements, changing the business or equity capital structure, issuing securities, use of funds, capital borrowings and other credit activities and appointment of key personnel, may require a unanimous or majority shareholders’ approval of the relevant property companies. As Ascott REIT does not own the entire interests in these property companies, there is no assurance that such unanimous or majority approval from the shareholders of the property companies would be obtained. The other shareholders of these property companies may vote against such resolutions and hence prevent such resolutions from being passed. If such resolutions are not passed, certain matters relating to these properties, such as those relating to the operation of the properties and the level of dividends to be declared by the property companies, may not be carried out and this may adversely affect Ascott REIT’s financial condition and results of operations.

Cessation of preferential tax rates for the Existing Portfolio in Vietnam will have an adverse impact on Ascott REIT’s financial condition and results of operations Hanoi Tower Center Company Limited and Westlake Development Company Limited have been granted preferential tax rates by the relevant authorities in Vietnam. Hanoi TowerCenter Company Limited has been granted a preferential tax rate of 20.0% up to 2038. Westlake Development Company Limited has been granted a preferential tax rate of 19.0% up to 2041. Any removal, loss, suspension or reduction of these preferential tax rates will subject Hanoi Tower Center Company Limited and Westlake Development Company Limited to the full income tax rate of 25.0% (based on existing tax regulations as at the Latest Practicable Date) on their profits, which may adversely affect Ascott REIT’s financial condition and results of operations.

42 There is no assurance that the other subsidiary proprietors of the Liang Court Mixed Development Complex (the “Complex”) will co-operate with Ascott REIT on matters concerning the Complex’s common property The Somerset Liang Court Property is one of the three strata lots in the Complex which is a subdivided development comprising a strata lot held by Ascott REIT, the strata lots held by the other subsidiary proprietors of the Complex and the common property. All the subsidiary proprietors of the Complex, which constitute the management corporation of the Complex, jointly own the common property in the Complex as tenants-in-common in proportion to the share values attributable to their respective strata lots. As of the Latest Practicable Date, Ascott REIT owns 24.06% of the total share value of strata lots comprising the Complex and cannot therefore solely manage the common property in the Complex. Under the Land Titles (Strata) Act, Chapter 158 of Singapore, certain matters concerning the Complex’s common property, such as the installation, provision of additional facilities or the making of improvements and the acceptance of transfers of land to add to the common property, require the passage of a special resolution at a general meeting of the management corporation, by at least 75.0% of votes of subsidiary proprietors present at such meeting. Certain other matters concerning the Complex’s common property, such as the creation of easements and the restrictions affecting the common property, require a unanimous resolution passed at a general meeting of the management corporation. There is no assurance that resolutions concerning the common property of the Complex can be passed or that Ascott REITwill be able to veto resolutions proposed by other subsidiary properties, as Ascott REIT owns only 24.06% of the total share value of strata lots comprising the Complex. The other subsidiary proprietors of the Complex may vote against such resolutions and hence prevent such resolutions from being passed. If such resolutions are not passed, the Complex’s management corporation would be unable to, among other things, undertake enhancement works involving the common property. This may affect the ability of the Somerset Liang Court Property to attract guests and may adversely affect Ascott REIT’s financial condition and results of operations.

The future market value of the properties within the Enlarged Portfolio may differ from the valuations determined by the Independent Valuers Property valuations (including the appraisals conducted by Savills and HVS in connection with the acquisition of the Target Properties) generally include a subjective evaluation of certain factors relating to the relevant properties, such as their relative market positions, their financial and competitive strengths and their physical conditions. A valuer’s determination of the appraised value of any property does not guarantee a sale of such property at its appraised value at present or in the future. The price at which Ascott REIT may sell any of the properties in the Enlarged Portfolio in the future may be lower than the price paid for that property. In addition, there can be no assurance that there will be no downward revaluation of the properties in the Enlarged Portfolio in the future. In addition, Ascott REIT is required to measure investment properties at fair value at each balance sheet date and any change in the fair value of the investment properties is recognised in the statements of total return. Although this may not have an impact on distributions to Unitholders or the level of distributable income of Ascott REIT, the changes in fair value may have an adverse effect on Ascott REIT’s financial results as revaluation losses will be charged to Ascott REIT’s statements of total return in the financial years where there is a significant decrease in the valuation of any of the properties in the Enlarged Portfolio. A downward revaluation of any of these properties may also result in an increase in Ascott REIT’s Aggregate Leverage.

The President of the Republic of Singapore may, as head lessor, re-enter the existing Singapore Properties upon a breach of the terms and conditions of the State lease Somerset Grand Cairnhill and Citadines Singapore Mount Sophia Property are each held under a registered State lease from the President of the Republic of Singapore, as head lessor. The Somerset Liang Court Property was leased under the registered State lease to the Urban Redevelopment Authority, and was subsequently sub-leased to Ascott REIT. The State lease

43 contains terms and conditions commonly found in State leases in Singapore, including, among other things, granting the head lessor right to re-enter the existing Singapore Properties and/or terminate the lease (without compensation) in the event the lessee fails to observe or perform the terms and conditions of the lease.

The Group may suffer material losses in excess of insurance proceeds The Group maintains insurance policies for the Existing Portfolio in accordance with general market practices and legal requirements. However, the Existing Portfolio could suffer physical damage caused by fire or other causes or the Group may suffer public liability claims, all of which may result in losses (including loss of rent) that may not be fully compensated by insurance proceeds. In addition, certain types of risks (such as war risk, acts of terorrism and outbreak of contagious diseases) may be uninsurable or the cost of insurance may be prohibitive when compared to the risk. Currently, the Group’s insurance policies for the Existing Portfolio cover acts of terrorism and may cover acts of war or outbreaks of contagious diseases. The Japanese properties within Ascott REIT’s portfolio are not insured against earthquakes. Should an uninsured loss or a loss in excess of insured limits occur, the Group could be required to pay compensation and/or lose capital invested in the affected Existing Property as well as anticipated future revenue from that Existing Property. The Group would also remain liable for any debt or other financial obligation related to that Existing Property. No assurance can be given that material losses in excess of insurance proceeds will not occur in the future. Such an event would adversely affect Ascott REIT’s financial condition and results of operations.

4) RISKS RELATING TO ASCOTT REIT’S OPERATIONS Ascott REIT’s business is subject to general economic conditions in countries or regions in Singapore and the other countries where its properties are located The performance of Ascott REIT’s properties, and the price at which the Units trade, are subject to general economic conditions in local markets and throughout the world. Financial turmoil in recent years has affected the economies where Target Properties and the properties in the Existing Portfolio are located, including Singapore, where Ascott REIT is organised and the Units are listed. Any negative change in general economic conditions, including further deterioration of credit conditions in the European sovereign debt market, could have an adverse impact on the Singapore economy or other markets where our properties located. This, in turn, could adversely affect our business prospects and financial condition or otherwise adversely impact the trading price of the Units.

Ascott REIT has a limited operating history and the Units have a limited trading history Ascott REIT commenced operations, and the Units were first listed on SGX-ST in 2006. Accordingly, Ascott REIT has a limited operating history from which to evaluate its business and prospects. Ascott REIT is still developing many of the structures and systems that will be necessary for it to operate its business on the scale anticipated in its growth plans. For example, the Enlarged Portfolio will expose Ascott REIT to significant foreign currency exchange rate risk, which may lead Ascott REIT to implement a currency hedging program or undertake other risk management techniques that it has not previously employed. Ascott REIT’s prospects must be considered in light of the risks and uncertainties encountered by an entity with limited operating history and significant growth plans. Its infrastructure and systems may require enhancement or further development to accommodate such growth and there can be no assurance that such enhancement will be effective or cost-efficient.

Ascott REIT’s prospects may be adversely affected by natural disasters and the occurrence of epidemics Natural disasters and epidemics that are beyond Ascott REIT’s control may adversely affect the economy, infrastructure and livelihood of the people in those countries or regions. Some countries or regions where Ascott REIT operates face threats of floods, earthquakes, sandstorms, snowstorms, fires and droughts, and epidemics such as Severe Acute Respiratory Syndrome (“SARS”), H5N1 avian flu or the swine flu (“Influenza A (H1N1)”). In addition, past occurrences of epidemics, depending on their scale, have caused varying degrees of damage to the economy of

44 Singapore, where Ascott REIT is organised and the Units are listed. An outbreak of Influenza A (H1N1) virus, SARS, avian flu or a similar epidemic, or the measures taken by the governments of affected countries, including Singapore, against such an outbreak, could severely disrupt Ascott REIT’s business operations and undermine investor confidence, thereby materially and adversely affecting its financial condition or results of operations.

Ascott REIT’s business may be harmed by changes in general economic and business conditions resulting from an increase in worldwide terrorism and political instability. Ascott REIToperates in various countries around the world and is exposed to the risks of political unrest, war, acts of terrorism and other instability which can result in disruption to its business or the business of its customers, seizure of or damage to assets and delays in loading or unloading. On September 11, 2001, terrorist attacks on the United States caused significant loss of life and property damage and disruptions in US and in global markets. The extent of the short-term and long-term impact of these events, including US military action and economic or diplomatic sanctions, is unclear, but could have a material effect on general economic conditions and market liquidity. An economic downturn may further reduce the demand for Ascott REIT’s services and adversely affect its business, financial condition and results of operations.

Ascott REIT will not own the trademarks used by the Target Properties. Ascott REIT’s operation of the Existing Portfolio and certain of the Target Properties relies on the trademarks, including “Ascott”, “Somerset” and “Citadines”, in each case with the associated logos and other relevant intellectual property rights. AIM has registered the “Ascott” and “Somerset” trademarks under the laws of each jurisdiction where the applicable TargetProperties and the Existing Portfolio are located. Pursuant to a licence agreement dated 6 March 2006 entered into by and between the Trustee and AIM, Ascott REIT has been granted a non-exclusive right to use and sub-license in connection with the business of Ascott REIT, the trademarks “Ascott”, “Somerset” and associated logos as well as other trademarks owned by AIM and/or which AIM has the right and authority to license as may be further agreed, in consideration of Ascott REIT paying a one-time nominal fee. The licence granted by AIM to Ascott REIT may be terminated in the event, inter alia, that the Manager ceases to be the Manager of Ascott REIT or upon material breach of any of the provisions of the licence agreement. In connection with the Target Properties in respect of which the “Citadines” trademarks are used, following the completion of the Transactions, the relevant owners of such Target Properties intend to enter in licence agreements with Citadines SA (which owns the “Citadines” trademarks) for use of the “Citadines” trademarks. However there can be no assurance that such licences will be granted on favourable terms or at all. Loss of the right to use the trademarks “Ascott”, “Somerset”, and/or the inability to obtain the right to use the trademark “Citadines” or, in each case, the associated logos, and other relevant intellectual property rights, may have a material adverse effect on Ascott REIT’s reputation, goodwill, business, prospects and results of operations.

Unauthorised use of Ascott REIT’s intellectual property by third parties, and the expenses incurred in protecting our intellectual property rights, may adversely affect our business. Ascott REITrelies on trademark and copyright law to protect its intellectual property rights. Despite these precautions, it may be possible for third parties to obtain and use the intellectual property used in our business without authorisation. Unauthorised use of the intellectual property, whether owned by Ascott REITor licensed to Ascott REIT (including those which are owned by subsidiaries of TAL), could adversely affect Ascott REIT’s business and reputation. Moreover, it may be necessary in the future to enforce Ascott REIT’s intellectual property rights. Future litigation may not be successful and could result in substantial costs and diversion of Ascott REIT’s resources, which could disrupt its business and could materially and adversely affect its business, financial condition and results of operations.

45 Potential liability for environmental problems could result in substantial costs Ascott REIT is subject to a variety of laws and regulations in countries in which the Target Properties and the Existing Portfolio are located concerning the protection of health and the environment that may require a current or previous owner of real estate to investigate and clean up hazardous or toxic substances on a property. For example, owners and operators of real estate may be liable for the costs of removal or remediation of certain hazardous substances or other regulated materials on or in such property. Such laws often impose liability without regard to whether the owner or operator knows of, or is responsible for, the presence of such substances or materials. The cost of investigation, remediation or removal of these substances may be substantial. Ascott REIT has not provided for such potential obligations in its consolidated financial statements. Environmental laws and regulations may also impose compliance obligations on owners and operators of properties with respect to the management of hazardous substances and other regulated materials. Failure to comply with these laws can result in penalties or other sanctions. Existing environmental reports and investigations with respect to any of the properties within the Enlarged Portfolio may not reveal all environmental liabilities, whether previous or current owners or operators of such Target Properties had created any material environmental condition not known to them or whether a material environmental condition exists in any one or more of these properties. There also exists the risk that material environmental conditions, liabilities, or compliance concerns may have arisen or may arise in the future. Future laws, ordinances or regulations and future interpretations of existing laws, ordinances or regulations may impose additional material environmental liability. One of the German Target Properties, Citadines Berlin Kurfu¨rstendamm (the “Affected Property”) is affected by groundwater contamination. The groundwater contamination in the Affected Property arose from its former use for purposes of chemical cleaning and/or dry cleaning during the 1950s through to the 1980s. The contamination was identified in 1999 and clean-up measures were carried out in the course of the construction of the Affected Property in 2001 and 2002 in coordination with the environmental authority. The damage to the ground water could, however, not be remedied by means of the technical decontamination measures available so far. While the relevant Property Holding Company has not, at the Latest Practicable Date, been requested by the relevant environmental authority to remedy the contamination, there is no assurance that the relevant Property Holding Company will not, in the future, be called upon by the environmental authority to do so and would in such event, have to bear the costs in undertaking such remedial effort. The other Target Properties may from time to time be affected by other environmental effects which may not have been previously identified and/or rectified. This raises a number of risks including: • the risk of prosecution by environmental authorities; • the risk of being required by environmental authorities to remedy such issues; • the requirement for unbudgeted additional expenditure to remedy such issues; • the adverse impact on the financial position of end-users arising from the above, affecting their ability to trade and to meet their obligations and which in turn affect the Master Lessees’ ability to pay their rents pursuant to the Master Lease Agreements. If such properties are found to be contaminated, Ascott REIT may be responsible for their full or partial decontamination. In such event, Ascott REIT may be required to incur unbudgeted expenditures in order to remedy such issues and may be liable to a third party for the consequences of contamination and decontamination where Ascott REIT has agreed, or is required, to carry out decontamination works. There is also the possibility that Ascott REIT may be prosecuted by the relevant authorities for the contamination issues or be asked to remedy such issues. In such event, the net income of Ascott REIT may be adversely affected. Several of the France Target Properties may have environmental exposures (including but not limited to lead exposure, flooding, termite infestation, and location above former limestone mine or within a gypsum area) and any rectification or repair costs may adversely affect Ascott REIT’s financial condition and results of operations.

46 Ascott REIT cannot provide assurance that more stringent requirements for environmental protection will not be imposed by the relevant governmental authorities in the future. If Ascott REIT fails to comply with existing or future environmental laws and regulations in the jurisdictions of the properties in the Enlarged Portfolio, or fails to meet the expectations of society with regard to environmental issues, Ascott REIT may suffer damage to its reputation or may be required to pay penalties or fines or take remedial actions, any of which could have a material adverse effect on its financial condition, results of operations and prospects.

The Group may be adversely affected by the illiquidity of real estate investments Real estate investments are generally illiquid, limiting the ability of an owner or a developer to convert property assets into cash on short notice with the result that property assets may be required to be sold at a discount in order to ensure a quick sale. Such illiquidity also limits the ability of the Manager to manage the Group’s portfolio in response to changes in economic or other conditions. This could have an adverse effect on the Group’s financial condition and results of operations, with a consequential adverse effect on the Group’s ability to make expected returns. Moreover, the Group may face difficulties in securing timely and commercially favourable financing in asset-based lending transactions secured by real estate due to its illiquidity.

The Group may experience limited availability of funds The Group may require additional financing to fund working capital requirements, to support the future growth of its business and/or to refinance existing debt obligations. There can be no assurance that additional financing, either on a short-term or a long-term basis, will be made available or, if available, that such financing will be obtained on terms favourable to the Group. Factors that could affect the Group’s ability to procure financing include the cyclicality of the property market and market disruption risks which could adversely affect the liquidity, interest rates and the availability of funding sources. The sub-prime mortgage financial crisis also had an adverse impact on availability and cost of funding and a future, similar event may also hinder the Group’s ability to obtain additional financing. In addition, further consolidation in the banking industry in Singapore and/or elsewhere may also reduce the availability of credit as the merged banks seek to reduce their combined exposure to one company or sector.

Ascott REIT’s failure to comply with the covenants contained in its debt facilities, including failure as a result of events beyond Ascott REIT’s control, could result in an event of default that could materially and adversely affect Ascott REIT’s cash flow, operating results and its financial condition If there were an event of default under one of Ascott REIT’s debt facilities, the holders of the debt on which Ascott REIT defaulted could cause all amounts outstanding with respect to that debt to become due and payable immediately. In addition, any event of default or declaration of acceleration under one debt facility could result in an event of default under one or more of Ascott REIT’s other debt instruments, with the result that all of Ascott REIT’s debt would be in default and accelerated. Ascott REIT cannot assure that its assets or cash flow would be sufficient to fully repay borrowings under its outstanding debt facilities, either upon maturity or if accelerated upon an event of default, or that Ascott REIT would be able to refinance or restructure the payments on those debt facilities. In the event of a default under Ascott REIT’s debt facilities, the value of its properties and other collateral under its indebtedness may not be sufficient to repay all of its indebtedness, which could result in the loss of investment as a Unitholder.

The Group may be involved in legal and/or other proceedings arising from its operations from time to time The Group may be involved from time to time in disputes with various parties involved in the development, operation, renovation and lease of the Properties such as contractors, sub-contractors, suppliers, construction companies, customers and tenants. These disputes may lead to legal or other proceedings, and may cause the Group to incur additional costs and delays. In addition, the Group may have disagreements with regulatory bodies in the course of its operations, which may subject it to administrative proceedings and unfavourable orders, directives or decrees that would result in financial losses and cause delay to the construction or completion of its projects.

47 The Manager is a wholly-owned subsidiary of TAL. There may be potential conflicts of interest between Ascott REIT, the Manager and TAL TAL is engaged in the investment in, and the development and operation of, among other things, real estate and real estate-related assets which are used, or predominantly used, as serviced residences and rental housing properties in Singapore and elsewhere. As at the Latest Practicable Date, TAL has an aggregate interest (direct and deemed) of approximately 29.4% of the total number of Units in issue and holds a 100.0% interest in the Manager. TAL and/or CapitaLand may in the future sponsor, manage or invest in other real estate investment trusts or other vehicles which may also compete directly with the Group. There can be no assurance that conflicts of interest will not arise between the Group, TAL and CapitaLand in the future, or that the Group’s interests will not be subordinated to those of TAL and/or CapitaLand whether in relation to the future acquisition of additional properties, acquisitions of property- related investments or competition for guests, in Singapore and elsewhere. Further, the management companies currently engaged to manage the Existing Portfolio are subsidiaries of TAL. There can be no assurance that these management companies will not favour properties that TAL has retained in its own property portfolio over those owned by the Group when providing serviced residence management services to the Group, which could lead to lower occupancy rates and/or lower rental income for the properties owned by the Group as a whole.

Ascott REIT’s Controlling Unitholders, the Manager and certain officers may take actions that are not in, or may conflict with, Ascott REIT or the Unitholders’ best interests Ascott REIT’s Controlling Unitholders and the Manager will continue to have the ability to exercise a controlling influence over its business, and may cause Ascott REIT to take actions that are not in, or may conflict with, its interests or the interests of the Unitholders, including the holders of the New Units, including matters relating to Ascott REIT’s management and policies and the election of the Directors and senior management.

The Group faces certain risks in connection with the acquisition of properties from TAL or parties related to TAL The Group may acquire assets from TAL in the future. There can be no assurance that the terms of such acquisitions, the negotiations in relation to such acquisitions, the acquisition value of such properties and other terms and conditions relating to the purchase of such properties (in particular, with respect to the representations, warranties and/or indemnities agreed) are not or, as the case may be, will not be adverse to the Group or reflect or, as the case may be, will reflect, an arm’s length acquisition of such properties by the Group.

There is no assurance that the Group will be able to benefit from TAL’s experience in the operation of serviced residences and rental housing properties In the event (a) that TAL decides to transfer or dispose of its Units and ceases to be a controlling Unitholder of Ascott REIT or (b) of the expiry, and non-renewal, of the serviced residences management agreements in relation to the Enlarged Portfolio, the Group may no longer be able to leverage on TAL’s experience in the ownership and operation of serviced residences and rental housing properties, financial strength, market reach and network of contacts in the serviced residence and rental housing sectors to further its growth. Ascott REIT may, in addition, not be able to benefit from the range of corporate services which are available to owners of properties managed by Ascott Group. This would have a material and adverse impact on the Group’s results of operations and financial condition.

Ascott REIT may not be able to control or exercise any influence over entities in which it has minority interests Ascott REIT may, in the course of future acquisitions, acquire minority interests in investment entities. There can be no assurance that Ascott REIT will be able to control such entities or exercise any influence over the assets of such entities or their distributions to Ascott REIT. Such entities may develop objectives which are different from those of Ascott REIT and may not be able to make

48 distributions to Ascott REITat levels that it anticipates. The management of such entities may also make decisions which could adversely affect the operations of Ascott REIT.

The Manager may not be able to implement its investment strategy for Ascott REIT or may change Ascott REIT’s investment strategy There can be no assurance that the Manager will be able to continue to implement its principal investment strategy successfully or that it will be able to expand Ascott REIT’s portfolio any further, or at any specified rate or to any specified size. The Manager may not be able to make investments or acquisitions on favourable terms or within a desired time frame. Ascott REIT will be relying on external sources of funding to expand its portfolio, which may not be available on terms favourable to Ascott REIT. Even if Ascott REITwere able to successfully make additional property investments, there can be no assurance that Ascott REIT will achieve its intended return on such investments. Since the amount of debt that Ascott REIT can incur to finance acquisitions is limited by the Property Fund Guidelines, such acquisitions will largely be dependent on Ascott REIT’s ability to raise equity capital. Potential vendors may also view the prolonged time frame and lack of certainty generally associated with the raising of equity capital to fund any such purchase negatively and may choose other potential purchasers. Furthermore, there may be significant competition for attractive investment opportunities from other real estate investors, including serviced residence development companies, private investment funds and other real estate investment funds whose investment policy is also to invest in commercial properties. There can be no assurance that Ascott REIT will be able to compete effectively against such entities. Ascott REIT’s policies with respect to certain activities including investments and acquisitions will be determined by the Manager. While the Manager has stated its principal investment strategy and such strategy may not have been changed since Ascott REIT was listed on the SGX-ST, the Trust Deed gives the Manager the ability to invest in other types of assets, including any real estate, real estate-related assets as well as listed and unlisted securities in Singapore and other jurisdictions. There are risks and uncertainties with respect to the selection of investments and with respect to the investments themselves.

The Group depends on certain key personnel, and the loss of any key personnel may adversely affect its operations The Group’s operations depend, in part, upon the continued service and performance of members of the Manager’s senior management team and certain key senior personnel. These key personnel may in future leave the Manager and may compete with the Manager and the Group. The loss of any of these individuals, or of one or more of the Manager’s other key employees could have a material adverse effect on the Group’s financial condition and results of operations.

The Group is subject to risk relating to interest rate fluctuations As at 30 June 2010, the Group’s proportionate debt amounts approximately to $647.4 million, of which approximately 27.0% is on a floating rate basis. There is no certainty that the interest rates will not move against Ascott REIT. Consequently, the interest cost to the Group for the floating interest rate debt will be subject to the risks of interest rate fluctuations. As part of its active capital management strategies, the Group has entered into some hedging transactions to partially mitigate the risk of such interest rate fluctuations. However, its hedging policy may not adequately cover the Group’s exposure to interest rate fluctuations. As a result, its operations and/or financial condition could potentially be adversely affected by interest rate fluctuations.

49 There is no assurance that the current rating given to Ascott REIT by Moody’s Investors Service will be maintained or that the rating will not be reviewed, downgraded, suspended or withdrawn in the future Ascott REIT is currently assigned a corporate credit rating of “Baa3” corporate family investment grade rating assigned by Moody’s Investors Service. The rating assigned by Moody’s Investors Service is based on the views of Moody’s Investors Service only. Future events could have a negative impact on the rating of Ascott REITand prospective investors should be aware that there is no assurance that the currently assigned rating will be maintained or that the rating would not be reviewed, downgraded, suspended or withdrawn as a result of future events or the judgment of Moody’s Investors Service. A downgrade or withdrawal of the credit rating assigned by Moody’s Investors Service would have a negative impact on the trading price of the Units and may lead to Ascott REIT being unable to obtain future credit on competitive terms.

Ascott REIT may operate in adverse conditions in the global financial markets and the general economy, which may adversely affect its business, financial condition, results of operations and prospects Ascott REIT’s results of operations and financial condition have been, and may further be, materially affected by conditions in the global financial markets. The stress experienced by global financial markets creates concerns over inflation, geopolitical issues and the availability and cost of credit. Such concerns may contribute to a reduction in liquidity levels, a general decline in lending activity by financial institutions and in commercial lending markets, an increased volatility and diminished expectations for the global economy and the markets in the near term. Furthermore, the risk of sovereign credit defaults or credit ratings downgrades by recognised ratings agencies may adversely impact economic activity and the capital markets. Recently the sovereign credit ratings of several European countries have been downgraded. For example, the sovereign credit rating of Spain, which is where the Spain Target Property is located, was downgraded to AA by Standard & Poor’s in April 2010, downgraded to AA+ by Fitch in May 2010 and placed under review for a potential downgrade by Moody’s in July 2010. These factors could have material adverse effects on Ascott REIT’s business and financial condition and ability to complete the Equity Fund Raising and the Transactions.

Ascott REIT faces foreign currency exchange rate risk The Existing Portfolio are located across seven countries in the Pan-Asian region, namely Australia, China, Indonesia, Japan, The Philippines, Singapore and Vietnam. The Europe Target Properties are located in France, UK, Belgium, Germany and Spain. Accordingly, because of the geographic diversity of the Group’s portfolio of Existing Portfolio and the Target Properties, Ascott REIT receives and will receive income in foreign currencies at the then applicable exchange rates. Such fluctuations can cause fluctuations in the Group’s results of operations and could have a material adverse effect on the Group’s reported financial results. A weakening of the foreign currencies against the Singapore dollar may also result in an increase in Ascott REIT’s Aggregate Leverage due to the reduced asset value and a decline in the Group’s net asset value (“NAV”).

Ascott REIT may engage in hedging transactions. Such hedging transactions may not be effective and can limit gains and increase exposure to losses. These hedging transactions could fail to protect, or could even adversely affect, Ascott REIT Ascott REIT has entered into some hedging transactions to partially mitigate the risk of interest rate fluctuations. It may in the future enter into hedging arrangements to seek to manage the currency risks associated with the cash flows generated by the properties outside Singapore. But there can be no assurance as to the extent or efficacy of any such hedging arrangements. Hedging activities may not have the desired beneficial impact on Ascott REIT’s business, financial condition, results of operations and prospects. Hedging involves risks and typically involves costs, including transaction costs, which may reduce overall returns. The Manager will regularly monitor the feasibility of engaging in such hedging transactions while taking into account the cost of such transactions. These costs will increase as the period covered by the hedging increases and during periods of rising and volatile interest rates and/or foreign exchange rates. These costs will also limit the amount of cash available for distribution to Unitholders.

50 Ascott REIT may be unable to comply with the terms and conditions of tax rulings and tax exemptions obtained, or such tax rulings or tax exemptions may be revoked or amended Ascott REIT has obtained various tax rulings and tax exemptions from the IRAS and the Singapore Ministry of Finance (“MOF”), including the tax transparency ruling and exemptions on foreign- sourced income received in Singapore in respect of its overseas properties. These tax rulings and tax exemptions are subject to stipulated terms and conditions based on the facts presented to the IRAS and the MOF at the time of such applications and include the requirement that Ascott REIT distribute at least 90.0% of its taxable income. There can be no assurance that Ascott REITwill be able to comply with these terms and conditions on an on-going basis or ensure that the facts presented to the IRAS or the MOF do not change over time. There can also be no assurance that the IRAS or the MOF will not review, amend or revoke the tax rulings and the tax exemptions, either in whole or in part, either arising from a change in the tax laws, their interpretations or policy. Non-compliance with the terms and conditions imposed on Ascott REIT by the IRAS and the MOF may affect Ascott REIT’s tax transparent status, its ability to distribute its taxable income free of withholding taxes and may also cause Ascott REIT to pay income tax on its taxable income, which may result in Ascott REIT facing liquidity constraints. The Singapore Minister for Finance announced in the 2010 Budget that a sunset clause of 31 March 2015 has been imposed for the foreign-sourced income exemption for listed REITs and wholly-owned Singapore subsidiary companies of listed REITs. This sunset clause means that the income tax exemption granted or to be granted under Section 13(12) of the Income Tax Act to listed REITs or wholly-owned Singapore subsidiary companies of listed REITs will only apply to qualifying foreign-sourced income that is received in Singapore on or before 31 March 2015. Unless the tax exemption is subsequently extended, the foreign-sourced income received in Singapore by Ascott REIT after 31 March 2015 may be subject to Singapore income tax at the prevailing corporate rate of tax, currently 17.0%. Such taxation will have an adverse impact on the amount of distributions made by Ascott REIT.

The Group will be subject to the operating risks inherent in the serviced residence and rental housing industry Ascott REIT directly or indirectly owns the Existing Portfolio. As a result, the Group is subject to the operating risks inherent in the serviced residence and rental housing industry, the occurrence of any of which could have a material adverse effect on the Group’s financial condition and result of operations. These risks include, among others: • cyclical downturns arising from changes in general and local economic conditions; • longer durations of stay may result in a decrease in income received per week; • decreases in the amount of longer-term business travel and corporate executives requiring mid-term to long-term accommodation; • periodic local oversupply of serviced residences and/or rental housing properties; • the recurring need for renovation, refurbishment and improvement of serviced residences and rental housing properties; • changes in wages, prices, energy costs and construction and maintenance costs that may result from inflation, government regulations, changes in interest rates or currency fluctuations; • availability of financing for operating, capital or investment requirements; • increases in operating costs due to inflation which may not necessarily be offset by corresponding increases in average daily rates (which refers to the income from the rental or licensing of apartment units under the Group’s portfolio, divided by the number of paid occupied nights during the applicable period); and • other factors, including acts of terrorism, natural disasters, extreme weather conditions, labour shortages and work stoppages or disputes.

51 The Group operates in an industry which may become increasingly competitive, which may have a material adverse effect on its business The serviced residence and rental housing industry is competitive and may become increasingly so. Each of the Properties is located in an area that includes serviced residences, rental housing properties and/or other types of accommodation such as hotels and guest houses owned and/or operated by third parties. The Group will compete locally and regionally with existing and newly developed serviced residences or rental housing properties. An increase in the number of serviced residences or rental housing properties that compete with our Properties could have a material adverse effect on occupancy rates and contribution to revenue generated by such Properties.

The amount Ascott REIT may borrow is limited, which may affect the operations of Ascott REIT Under the Property Funds Appendix, Ascott REIT is permitted to borrow up to 35.0% of the value of its Deposited Property at the time the borrowing is incurred. The Property Funds Appendix also provide that the aggregate leverage of a REIT may exceed 35.0% of the value of its Deposited Property (up to a maximum of 60.0%) only if a credit rating of the REIT from Fitch Inc., Moody’s Investors Service or Standard and Poor’s is obtained and disclosed to the public and such rating is maintained and disclosed for so long as Ascott REIT’s Aggregate Leverage exceeds 35.0% of its Deposited Property. As at 30 June 2010, Ascott REIT’s Aggregate Leverage was 40.7%. Ascott REIT may, from time to time, require further debt financing to achieve its investment strategy and a further decline in the value of the Deposited Property may affect Ascott REIT’s ability to make further borrowings due to the aggregate leverage limits under the Property Funds Appendix. Adverse business consequences of this limitation on borrowings may include, among other things: • an inability to fund capital expenditure requirements, refurbishments, renovation and improvements in relation to Ascott REIT’s Enlarged Portfolio or to properties that may be acquired by Ascott REIT to expand its portfolio; • cash flow shortages (including with respect to distributions) which Ascott REIT might otherwise be able to resolve by borrowing funds; and • Ascott REIT may not be able to obtain additional equity or debt financing or be able to obtain such financing on favourable terms. The above adverse business consequences may adversely affect Ascott REIT’s financial condition, results of operations and its level of distributable income.

Ascott REIT’s European portfolio is dependent on rental payments from Master Leases with various entities that are subsidiaries of TAL In connection with, and upon completion of the Target Acquisitions, the Master Leases entered into by the entities that hold directly the 19 France Target Properties and Germany Target Properties will continue to subsist upon completion of the Target Acquisitions. Ascott REIT’s European portfolio is largely dependent on rental payments from the Master Lessees. Because Master Lessees are the sole tenants of each of the Target Properties in respect of which a master lease arrangement is in place, Ascott REIT is exposed to concentrated counter party risk with respect to these properties and is reliant on, among other things, the TAL Undertaking. Accordingly, Ascott REIT’s revenue and ability to make distributions to Unitholders will depend upon the ability of the Master Lessees to make rental payments. A downturn in the business of the Master Lessees may weaken their financial condition and result in the Master Lessees’ failure to make timely rental payments or default under the Master Leases. In such event, Ascott REIT may, among other things, experience delays in enforcing its rights as landlord and thus may incur substantial costs in protecting its investments. Factors that affect the ability of the Master Lessees to meet their obligations under the Master Leases include operating risks inherent in the serviced residence industry including decreases in the amount of longer-term business travel and corporate executives requiring mid-term to long-

52 term accommodation, periodic local oversupply of serviced residences and competition from other serviced residences in the countries in which the Target Properties operate. There can be no assurance that the Master Lessees will have sufficient assets, income and access to financing in order to enable them to satisfy their obligations under the respective Master Leases. In addition, there is no assurance that TAL will observe the terms of the TAL Undertaking by procuring that: (a) in respect of the Master Leases with an original term of nine years, namely the Master Leases in relation to Citadines Lille Centre, Citadines Grenoble, Citadines Paris Louvre, Citadines Paris Trocadéro, Citadines Lyon Presqu’île, Citadines Paris Place d’Italie, Citadines Paris Montmartre, Citadines Paris Tour Eiffel, Citadines Marseille Prado Chanot and Citadines Paris Les Halles, Citadines SA will fulfill the full nine-year term of these Master Leases; and/or (b) in respect of the Master Leases with an original term of 12 years, namely the Master Leases in relation to Citadines Paris Austerlitz, Citadines Paris Didot Alesia, Citadines Maine Montparnasse, Citadines Paris Voltaire République, Citadines Marseille Castellane, Citadines Montpellier Antigone and Citadines Cannes Carnot, Citadines SA will renew such Master Leases (expiring in 2011) and waive its option to terminate at the end of the first three-year period of the renewed Master Leases. Any non-payment of the rent by the Master Lessees or failure by TAL to pay and satisfy the Trustee and/or the Master Lessor of outstanding sums which are due to the Master Lessor under the Master Leases may have an adverse effect on the financial condition of Ascott REITand its level of distributable income.

The Target Acquisitions may not yield the returns expected, resulting in disruption to Ascott REIT’s business, strain on management resources and dilution of holdings Ascott REIT’s external growth strategy and its market selection process may not ultimately be successful and may not provide positive returns to Unitholders. The Target Acquisitions made by Ascott REIT will be required to be integrated into its existing portfolio. The Target Properties may be less aligned with Ascott REIT’s growth strategy than originally anticipated and may cause disruptions to Ascott REIT’s operations and divert the Manager’s attention away from day-to-day operations, any or all of which may have an adverse effect on the financial condition and results of operations of Ascott REIT. New Units issued in connection with the Target Acquisitions could also be substantially dilutive to Unitholders. In addition, the Target Acquisitions may not be yield accretive to Unitholders.

5) RISKS RELATING TO THE COUNTRIES IN WHICH THE PROPERTIES WITHIN THE ENLARGED PORTFOLIO ARE LOCATED The Group is subject to risks relating to the economic, political, legal or social environments of the countries in which the Target Properties and Existing Portfolio are located The Group is subject to risks associated with certain countries in which the Enlarged Portfolio are located. These countries have at various times in the past, been adversely affected by volatile economic, political and social conditions. The business, prospects, profitability and asset values of the Enlarged Portfolio may be materially and adversely affected by factors such as, among other things: • unexpected changes in laws and regulations and uncertainty in connection with the application and/or implementation of existing laws and regulations; • the ability of the Manager to deal with multiple and diverse regulatory regimes; • potentially adverse tax consequences; • uncertain protection for intellectual property rights;

53 • fluctuations in exchange rates between the Singapore dollar and the relevant foreign currency; • the risk of nationalisation and expropriation of the Group’s assets; • imposition or tightening of foreign exchange controls or restrictions on repatriation of dividends or profits; • social unrest or political instability; and • adverse economic, political and other conditions. In particular, the interpretation or application of laws and regulations in the countries in which the Enlarged Portfolio are located may be uncertain and subject to rapid and unforeseen changes. The Group or the Manager has no control over such conditions and developments and cannot provide any assurance that such conditions and developments will not have a material adverse effect on the operations, financial condition and results of operations of the properties within the Enlarged Portfolio.

The Gross Revenue earned from, and the value of, the Enlarged Portfolio may be adversely affected by a number of factors The Gross Revenue earned from, and the value of, the Enlarged Portfolio may be adversely affected by a number of factors, including, among other things: • a general economic downturn of the economy that adversely affects occupancy and rental rates; • the local and international economic climate and real estate market conditions (such as oversupply of, or reduced demand for, serviced residences or rental housing properties, changes in market rental rates and operating expenses for the Existing Portfolio); • competition for occupants from other properties, which may affect rental levels or occupancy levels of the Existing Portfolio; • changes in laws and governmental regulations relating to real estate, including those governing usage, zoning, taxes, government charges and environmental issues, compliance with which may lead to an increase in management expenses or unforeseen capital expenditure; • legislative actions, such as the enactment or revisions of the laws relating to building standards, town planning, condemnation and redevelopment, which may affect or restrict rights related to the relevant Existing Portfolio; and • acts of God, natural disasters, earthquakes, volcanic eruptions, floods, wars, military coups, terrorist attacks, riots, outbreak of infectious diseases, civil unrest and other events beyond the control of the Group and/or the Manager.

The Target Properties and the Existing Portfolio (or part thereof) may be acquired compulsorily The Enlarged Portfolio, or the land on which the properties therein are located in and outside of Singapore may be compulsorily acquired by the respective governments of the countries in which they are located for, among other things, public use or due to public interest. In the event the Enlarged Portfolio, or the land on which they are located are compulsorily acquired, the income of the Group may be adversely affected. The owner of a property within the Enlarged Portfolio that is compulsorily acquired may be compensated in accordance with the laws of the respective jurisdiction. If the market value of the land (or part thereof) to be compulsorily acquired is greater than the compensation paid to the Group, the Group’s business, financial condition and results of operations could be adversely affected.

54 6) RISKS RELATING TO AN INVESTMENT IN THE UNITS The price of the Units may decline after the Equity Fund Raising The Preferential Offering Issue Price and the Private Placement Issue Price are determined by agreement of the Manager and the Joint Lead Managers, Bookrunners and Underwriters and may not be indicative of the market price for the New Units after the completion of the Equity Fund Raising. The Units after the Equity Fund Raising may trade at prices significantly below the Preferential Offering Issue Price and the Private Placement Issue Price. The price of the Units will depend on many factors, including: • the perceived prospects of our business and local and global real estate markets; • differences between our actual financial and operating results and those expected by investors and analysts; • changes in analysts’ recommendations or projections; • changes in general economic or market conditions, including broad market fluctuations, such as weakness of the equity market and increases in interest rates; • the market value or appraisal of our assets; • the attractiveness of our Units against those of other equity securities, including those not in the real estate sector; • the future size and liquidity of the Singapore REIT market as a whole; • any future changes to the regulatory system, including the tax system, both generally and specifically in relation to REITs; • the success of other REITs in comparison to our success; and • any inability on our part to compete successfully for the acquisition of properties. For these reasons, Units may trade at prices that are higher or lower than the net asset value per Unit. To the extent that we retain operating cash flow for investment purposes, working capital reserves or other purposes, these retained funds, while increasing the value of our underlying assets, may not correspondingly increase the market price of the Units. Any failure on our part to meet market expectations with regard to future earnings and cash distributions may materially adversely affect the market price for your Units.

The trading price of the Units has been, and may continue to be, volatile The trading price of the Units may be subject to large fluctuations. The trading price of the Units may increase or decrease in response to a number of events and factors, including: • quarterly variations in operating results; • changes in financial estimates and recommendations by securities analysts; • the operating and stock price performance of companies in the real estate industry and other REITs; • developments affecting Ascott REIT, its tenants or its competitors; • valuations of the properties held by Ascott REIT; • changes to the regulatory system, including the tax system, both generally and specifically in relation to Singapore REITs; • changes in general economic conditions; • changes in foreign exchange rates or interest rates; • changes in accounting policies; and • other events or factors described in this Offer Information Statement.

55 These factors may adversely affect the trading price of the Units regardless of Ascott REIT’s operating performance.

The sale or possible sale of a substantial number of Units by TAL, Somerset Capital Pte Ltd and/or the Manager in the public market following the lapse of the Lock-Up Restrictions could adversely affect the price of the Units TAL, which is a Controlling Unitholder of Ascott REIT, has undertaken that it will and will procure each of its subsidiaries, Somerset Capital Pte Ltd and the Manager to, comply with the Lock-up Restrictions in respect of the Moratorium Units for the Moratorium Period. (See the section titled “Equity Fund Raising — Moratorium” in this Offer Information Statement for more information on the Moratorium.) The Units will be traded on the Main Board of the SGX-ST. If TAL, Somerset Capital Pte Ltd and the Manager (following the lapse of the Lock-up Restrictions or pursuant to any applicable waivers), directly or indirectly sells or is perceived as intending to sell a substantial amount of its Units, the market price for the Units could be adversely affected.

Future issues of additional Units may cause dilution to existing Unitholders The Manager may plan to issue additional Units in the future as required to fund future asset acquisitions and for other purposes. The price at which Ascott REIT issues any new Units in the future may affect the NAV per Unit. In addition, it is possible that cash available for distributions could be affected by the issuance of additional Units.

Ascott REIT may not be able to make distributions to Unitholders or the level of distributions may fall The net operating profit earned from real estate investments depends on, among others, the amount of rental income received, and the level of property, operating and other expenses incurred. If the properties which are directly or indirectly held by Ascott REIT do not generate sufficient net operating profit, Ascott REIT’s income, cash flow and level of distributable income will be adversely affected. No assurance can be given as to Ascott REIT’s ability to pay or maintain distributions, nor is there any assurance that the level of distributions will increase over time, that there will be contractual increases in rent under the leases of properties in the Enlarged Portfolio or that the receipt of rental income in connection with expansion of the properties or future acquisitions of properties will increase Ascott REIT’s cash flow available for distribution to Unitholders.

Singapore takeover law may discourage or prevent certain types of transactions The Securities and Futures Act, Chapter 289 of Singapore and the Singapore Code on Take-overs and Mergers (the “Take-Over Code”) contain certain provisions that may delay, deter or prevent a future takeover or change in control of Ascott REIT. Any person acquiring an interest (either on his or her own or together with parties acting in concert with him or her) in 30.0% or more of the total Units must extend a takeover offer for the remaining Units in accordance with the provisions of the Take-Over Code. A takeover offer is also required to be made by a person holding (either on his or her own or together with parties acting in concert with him or her) between 30.0% and 50.0% (both inclusive) of the total Units if he or she acquires additional Units carrying more than 1.0% of the total Units in any six-month period. While the Take-over Code seeks to ensure an equality of treatment among unitholders, its provisions could substantially impede the ability of unitholders to benefit from a change of control and, as a result, may adversely affect the market price of the Units and the ability to realise any benefit from a potential change of control.

Investors purchasing Units in the Equity Fund Raising will be subject to risks related to non-redeemable securities Investors purchasing units may be exposed to risks associated with non-redeemable securities. Unitholders cannot require that Ascott REITredeem their Units while the Units are listed, except in the event of the distribution of residual property or in the event of our dissolution and liquidation.

56 Units are not capital-safe products and there is no guarantee that Unitholders can regain the amount invested. If Ascott REIT files for bankruptcy or is otherwise liquidated, it is possible that all or a part of the principal of the Units will not be paid to the Unitholders.

Enforcing Investors’ rights under the New Units across multiple jurisdictions may prove difficult Ascott REIT is incorporated under the laws of Singapore and the Existing Portfolio and Target Properties are owned by entities incorporated under the laws of Australia, China, Indonesia, Japan, The Philippines, Singapore, Vietnam, France, the United Kingdom, Belgium, Germany and Spain. In the event of bankruptcy, insolvency or a similar event, proceedings could be initiated in any of the aforementioned jurisdictions or other jurisdictions where future properties may be developed or acquired. Such multi-jurisdictional proceedings are likely to be complex and costly for creditors and otherwise may result in greater uncertainty and delay regarding the enforcement of your rights. Investors’ rights under the New Units will be subject to the insolvency and administrative laws of several jurisdictions and there can be no assurance that the investors will be able to effectively enforce their rights in such complex multiple bankruptcy, insolvency or similar proceedings. In addition, the bankruptcy, insolvency, administrative and other laws of the aforementioned jurisdictions may be materially different from, or be in conflict with, each other and those with which the investors may be familiar, including in the areas of rights of creditors, priority of governmental and other creditors, ability to obtain post-petition interest and duration of the proceeding. The application of these laws, or any conflict among them, could call into question whether any particular jurisdiction’s laws should apply, and could adversely affect your ability to enforce your rights under the New Units in the relevant jurisdictions or limit any amounts that you may receive.

The investors’ investment in the New Units will subject the investors to foreign exchange risks The New Units are denominated and payable in Singapore dollar. If the investors measure their investment returns by reference to a currency other than Singapore dollar, an investment in the New Units will entail foreign exchange-related risks, including possible significant changes in the value of the Singapore dollar relative to the currency by reference to which the investors measure their investment returns, due to, among other things, economic, political and other factors over which Ascott REIT has no control. In addition, there may be tax consequences for the investors as a result of any foreign exchange gains resulting from any investment in the New Units.

Ascott REIT may be exposed to risks of avoidance or fraudulent conveyance in relation to properties purchased from insolvent entities If Ascott REIT purchases a property from a seller or a predecessor thereof who later becomes subject to bankruptcy, corporate reorganisation or civil rehabilitation proceedings, Ascott REIT faces a risk of having the transaction voided. In such a case, Ascott REIT could be required to return the property that it purchased to the seller or a predecessor thereof or to a trustee in insolvency proceeding on behalf of either of them appointed pursuant to the insolvency proceedings. In addition, if a seller sells a property to Ascott REIT while it is insolvent or its predecessor is insolvent or, if as a result of such a sale to Ascott REIT, the seller or a predecessor thereof becomes insolvent, there is a risk that the sale could be a fraudulent conveyance under applicable law. In such a case, Ascott REITwould be required to return the property and would only have an unsecured claim against the seller or a predecessor thereof for the return of the purchase price Ascott REIT paid for such property. There can be no assurance that such properties would not be subject to such fraudulent conveyance claims.

57 CERTAIN FORECAST FINANCIAL INFORMATION RELATING TO THE TRANSACTIONS, THE EQUITY FUND RAISING AND THE DEBT FINANCING The following tables should be read together with the detailed forecast consolidated statement of Ascott REIT’s total return and distribution for the Forecast Period 2010 and the Projection Year2011 as well as the accompanying “Cautionary Language”, “Assumptions” and “Sensitivity Analysis” in Appendix E of this Offer Information Statement (the “Profit Forecast and Profit Projection”), the “Independent Accountants’ Report on the Profit Forecast and Profit Projection” in Appendix F of this Offer Information Statement, and the “Unaudited Pro Forma Consolidated Financial Information” included in Appendix C and the “Independent Accountant’s Report on the Unaudited Pro Forma Consolidated Financial Information” included in Appendix D of this Offer Information Statement. Your attention is drawn to the developments and uncertainties affecting Ascott REIT’s business that are discussed throughout this document. In addition, your attention is drawn to the “Cautionary Language” and “Assumptions” set forth in Appendix E of this Offer Information Statement for a discussion of the various assumption on which the Profit Forecast and Profit Projection are based and the section “Risk Factors” in this Offer Information Statement for a discussion of various factors that could materially affect Ascott REIT’s financial condition, results of operations, business and prospects. In particular, please see the risk factors “The assumptions set forth in the Profit Forecast and Profit Projection are inherently uncertain and are subject to significant business, economic, financial, regulatory and competitive risks and uncertainties” and “The actual performance of Ascott REIT and the Enlarged Portfolio will differ from the forecasts and projections set forth in this document and such differences may be material” under the section titled “Risk Factors” in this Offer Information Statement. The Profit Forecast and Profit Projection assume that Ascott REIT proceeds with all of the Transactions, among other important assumptions, such as the success of Ascott REIT’s business strategy. If Ascott REIT does not proceed with the Transactions or if its business strategy is unsuccessful, actual results may differ from the information as shown in the table and in the “Profit Forecast and Profit Projection” in Appendix E of this Offer Information Statement.

58 The following table presents, in summary, certain selected forecast financial information of Ascott REIT for the three months ending 31 December 2010 (the “Forecast Period 2010”) and the financial year ending 31 December 2011 (the “Projection Year 2011”), which reflect the effect of the Transactions, Equity Fund Raising and Debt Financing as if they were all completed on 1 October 2010 on Ascott REIT’s statement of total return assuming 487,518,000 New Units are raised at an illustrative issue price of $1.15 per New Unit.

Forecast Consolidated Statements of Total Return Forecast Period 2010 Projection Year 2011 (1 October 2010 to 31 December 2010) (1 January 2011 to 31 December 2011) Target Target Acquisitions Acquisitions Existing and Enlarged Existing and Enlarged Portfolio Divestment(1) Portfolio Portfolio Divestment(1) Portfolio ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) Gross Revenue 45,331 23,424 68,755 187,627 101,505 289,132 Direct expenses (24,472) (8,016) (32,488) (102,472) (33,653) (136,125) Gross Profit 20,859 15,408 36,267 85,155 67,852 153,007 Finance income 113 108 257 266 Other income 9 7 94 205 Finance costs (6,071) (11,768) (25,521) (46,576) Manager’s management fees (1,915) (3,301) (7,654) (13,564) Trustee’s fee (56) (79) (214) (306) Professional fees (185) (189) (806) (826) Audit fees (209) (490) (852) (1,404) Other operating expenses (325) (343) (496) (563) Net income 12,220 20,212 49,963 90,239 Net change in fair value of serviced residence properties(2) — (13,917) — — Profit from Divestment — 115,571 — — Total return for the period/year before income tax 12,220 121,866 49,963 90,239 Income tax expense(4) (2,311) (14,132) (8,896) (20,111) Total return for the period/year 9,909 107,734 41,067 70,128

Attributable to: Unitholders 8,695 106,466 36,342 65,128 Minority interests 1,214 1,268 4,725 5,000 Total return for the period/year 9,909 107,734 41,067 70,128

59 Reconciliation from Total Return for the period/year to amount available for distribution to Unitholders Forecast Period 2010 Projection Year 2011 (1 October 2010 to 31 December 2010) (1 January 2011 to 31 December 2011) Target Target Acquisitions Acquisitions Existing and Enlarged Existing and Enlarged Portfolio Divestment(1) Portfolio Portfolio Divestment(1) Portfolio ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) Total return attributable to Unitholders from Consolidated Statements of Total Return 8,695 106,466 36,342 65,128 Net effect of non-tax deductible/ chargeable items and other adjustments(3) 2,490 (85,860) 9,747 22,370 Amount available for distribution to Unitholders 11,185 20,606 46,089 87,498 Units in issue (’000) 620,415 1,121,973 623,749 1,130,061 Distribution per Unit (cents)(5) 1.80 1.84 7.39 7.74 Distribution per Unit (cents) — annualised(5),(6) 7.21 7.35 7.39 7.74 Notes: (1) Apart from Gross Revenue and direct expenses, other operating income and expenses have not been allocated to the Target Acquisitions and Divestment as such allocation would be arbitrary and may not be meaningful. (2) Refers to acquisition fee capitalised as part of cost of serviced residence properties at completion of the Transactions. This acquisition fee is subsequently accounted as change in fair value of serviced residence properties as at 31 December 2010 when serviced residence properties is recorded at valuation. (3) These include non-tax deductible expenses relating to the portion of the Manager’s management fees which are payable in the form of Units, other expenses which are non-deductible for tax purposes, adjustments for certain non-cash items including depreciation of plant and equipment, change in fair value of serviced residence properties and profit from Divestment. (4) For Forecast Period 2010, income tax expenses for the Enlarged Portfolio included $9.4 million of withholding tax relating to the Divestment. (5) As announced on 6 August 2010, a sale and purchase agreement has been entered into for the sale of Country Woods, Jakarta for US$24.2 million, subject to satisfaction of conditions precedent. Completion for the sale of Country Woods is expected to take place in the fourth quarter of 2010. The impact to DPU of the Existing and Enlarged Portfolio is not expected to be significant for both Forecast Period 2010 and Projection Year 2011. (6) Excludes utilisation of deferred tax assets of approximately $0.4 million and $1.5 million, for Forecast Period 2010 and Projection Year 2011 respectively. Such utilisation is non-recurring in nature as the deferred tax assets is expected to be fully utilised in Projection Year2011. Including the utilisation of deferred tax assets, annualised DPU of the Enlarged Portfolio would have been 7.48 cents and 7.87 cents for Forecast Period 2010 and Projection Year 2011 respectively.

60 PRO FORMA FINANCIAL EFFECTS OF THE TRANSACTIONS The information in this section should be read together with the “Unaudited Pro Forma Consolidated Financial Information” included in Appendix C and the “Independent Accountants’ Report on the Unaudited Pro Forma Consolidated Financial Information” included in Appendix D of this Offer Information Statement. Your attention is drawn to the section “Risk Factors” in this Offer Information Statement for a discussion of various factors that could materially affect Ascott REIT’s financial condition, results of operations, business and prospects. In particular, your attention is drawn to the Risk Factor titled “The pro forma financial information included in this document is not based on audited financial statements of the companies that own the Target Properties”.

Certain Financial Information Relating to the Transactions, the Equity Fund Raising and the Debt Financing The following table presents, in summary, certain selected financial information in relation to the Transactions, based on the assumption that the Transactions, the Equity Fund Raising and the Debt Financing are to be completed on 1 October 2010 in respect of the Forecast Period 2010 and Projection Year 2011 and the income from the Target Properties accrues to Ascott REIT from 1 October 2010. Forecast Period 2010 Projection Year 2011 (1 October 2010 - (1 January 2011 - 31 December 2010) 31 December 2011) Gross Revenue ($’000) 68,755 289,132 Direct expenses ($’000) (32,488) (136,125) Gross Profit ($’000) 36,267 153,007 The pro forma financial effects on the Transactions on the DPU and NAV per Unit presented below are strictly for illustrative purposes only and were prepared based on the 2009 Audited Consolidated Financial Statements and the 1H2010 Unaudited Consolidated Financial Statements as well as the assumptions set out below. Such information should be read in conjunction with the Unaudited Pro Forma Consolidated Financial Information in Appendix C of this Offer Information Statement. In preparing the pro forma DPU and NAV per Unit for FY2009 and 1H2010, certain assumptions, including but not limited to, the following general assumptions (the “General Assumptions”) have been made: (a) 487,518,000 New Units are issued at an illustrative issue price of $1.15 per New Unit; (b) gross proceeds of $560.6 million are raised by the Equity Fund Raising; (c) $12.2 million of the net proceeds was retained for general corporate and working capital purposes; (d) the Manager’s management fees payable for the Target Acquisitions were paid 100% in Units; and (e) the exchange rates between EUR, GBP, RMB, USD and for Singapore dollar are assumed to be as follows: As at Average rate As at As at Average rate 1 January for 31 December 30 June for 2009 FY2009 2009 2010 1H2010 EUR 1.946 2.023 2.075 1.732 1.884 GBP 2.325 2.259 2.287 2.040 2.154 RMB 0.211 0.213 0.203 0.205 0.205 USD 1.439 1.457 1.387 1.403 1.398 The pro forma financial information is based on the audited financial statements of the Group, Citadines Singapore Mount Sophia Pte. Ltd. and Hemliner Pte Ltd, restated financial statements of Somerset Hoa Binh Joint Venture Company Limited, Hemliner (Beijing) Real Estate Co., Ltd, Residence des 2 Gares, Place de Metz, SCI Citadines Paris Louvre, Oriville, Citador Olivaer Platz GmbH & Co. KG and Citadines Munich Arnulfpark GmbH & Co. KG, FBM London Limited, Citadines Holborn CI Limited, FBM Belgique SPRL, Immobiliere Toisor and unaudited management financial information of Reo St Didier, SCI Lyon, SCI Résidence Italie, SNC Rachel, SCI Grenelle, SCI Montpellier, SCI Marseille, SCI Austerlitz, SCI

61 République, SCI Montparnasse, SCI Cannes, SCI Sodi, Citagrep Limited and Eurimeg Espana, S.A. for the financial year ended 31 December 2009 and the available financial information in respect of the Transactions. The objective of the Unaudited Pro Forma Consolidated Financial Information of the Group is to show what the total return, financial position and cash flows might have been had the Group completed the Transactions at earlier dates. However, the Unaudited Pro Forma Consolidated Financial Information of the Group is not necessarily indicative of the total return, the financial position or cash flows that would have been attained had the Group actually completed the Transactions earlier. The Unaudited Pro Forma Consolidated Financial Information has been prepared for illustrative purpose only and, because of its nature, may not give a true picture of the Group’s actual total return, financial position or cash flows. The procedures carried out by the Independent Accountants on the unaudited pro forma consolidated financial statements have not been carried out in accordance with attestation standards and practices generally accepted in the United States of America or other jurisdictions, other than in Singapore, and accordingly, should not be relied upon as if they had not been carried out in accordance with those standards.

Pro Forma DPU and Distribution Yield Financial Year ended 31 December 2009 The table below sets out the pro forma financial effects of the Transactions on Ascott REIT’s DPU and distribution yield for FY2009, as if (a) the Transactions were completed on 1 January 2009, (b) the Equity Fund Raising was completed on 1 January 2009, (c) the proceeds from the Divestment was $168.5 million, (d) the Debt Financing of $177.8 million was completed on 1 January 2009 and (e) additional borrowings of $40.1 million was drawn on 1 December 2009 for the acquisition of Citadines Munich Arnulfpark. FY2009 Existing Portfolio Enlarged Portfolio Distributable Income ($’000) 45,207(1) 85,683 Units in issue (’000) 617,210(2) 1,125,058 DPU (cents) 7.32 7.62 Distribution yield (%) 6.10(3) 6.35(3) Earnings per unit (cents) (3.44) 2.22

Notes: (1) Based on the 2009 Audited Consolidated Financial Statements. (2) Number of Units in issue as at 31 December 2009. (3) Computed based on the closing Unit price of $1.20 on 31 December 2009.

62 Six months ended 30 June 2010 The table below sets out the pro forma financial effects of the Transactions on Ascott REIT’s DPU and distribution yield for 1H2010, as if (a) the Transactions were completed on 1 January 2010, (b) the Equity Fund Raising was completed on 1 January 2010, (c) the proceeds from the Divestment was $157.1 million and (d) the Debt Financing of $244.9 million was completed on 1 January 2010. 1H2010 Existing Portfolio Enlarged Portfolio Distributable Income ($’000) 21,824(1) 42,208 Units in issue (’000) 618,806(2) 1,122,754 DPU (cents) 3.53 3.76 Distribution yield (%) (annualised) 6.30(3) 6.71(3) Earnings per unit (cents) 7.81 14.80

Pro Forma Consolidated NAV As at 31 December 2009 The table below sets out the pro forma financial effects of the Transactions on the consolidated NAV as at 31 December 2009, as if the Transactions and the Equity Fund Raising were completed on 31 December 2009. In addition to the General Assumptions set out above, the following assumptions have been made in preparing the pro forma NAV as at 31 December 2009: (a) the net proceeds from the Divestment were $157.1 million; (b) the aggregate Purchase Consideration for the Target Acquisitions was $930.6 million; (c) the Debt Financing of $244.9 million was completed on 31 December 2009; and (d) the estimated costs of the Equity Fund Raising and Debt Financing were $19.8 million. As at 31 December 2009 Existing Portfolio Enlarged Portfolio NAV ($’000) 825,061(1) 1,463,521 Units in issue (’000) 617,210(2) 1,119,849 NAV per Unit ($)(4) 1.34 1.31(3)

Notes: (1) Based on the 2009 Audited Consolidated Financial Statements. (2) Number of Units in issue as at 31 December 2009. (3) The Manager’s acquisition fees for the Target Acquisitions of $15.9 million were assumed to be paid in Units based on an illustrative issue price of $1.15 per Unit on 31 December 2009 and were capitalised in serviced residence properties. Subsequent to acquisition of the Target Properties on 31 December 2009, the carrying amount of the Target Properties was revalued to the assumed valuation of $1.40 billion. (4) Had the distribution in February 2010 of Ascott REIT’s distributable income of $23.3 million for the period from 1 July 2009 to 31 December 2009 been adjusted on 31 December 2009, the adjusted NAV per unit for the Existing Portfolio and Enlarged Portfolio would be $1.30 and $1.29, respectively.

63 As at 30 June 2010 The table below sets out the pro forma financial effects of the Transactions on the consolidated NAV as at 30 June 2010, as if the Transactions and the Equity Fund Raising were completed on 30 June 2010. In addition to the General Assumptions set out above, the following assumptions have been made in preparing the pro forma NAV as at 30 June 2010: (a) the net proceeds from the Divestment were $164.1 million; (b) the aggregate Purchase Consideration for the Target Acquisitions was $800.1 million; (c) the Debt Financing of $106.7 million was completed on 30 June 2010; and (d) the estimated costs of the Equity Fund Raising and the Debt Financing were $19.1 million. As at 30 June 2010 Existing Portfolio Enlarged Portfolio NAV ($’000) 852,794(1) 1,492,813 Units in issue (’000) 618,806(2) 1,119,559 NAV per Unit ($)(4) 1.38 1.33(3)

Notes: (1) Based on the 1H2010 Unaudited Consolidated Financial Statements. For more information, please refer to www.ascottreit.com. (2) Number of Units in issue as at 30 June 2010. (3) The Manager’s acquisition fees for the Acquisitions of $13.7 million were assumed to be paid in Units based on an illustrative issue price of $1.15 per Unit on 30 June 2010 and were capitalised in serviced residence properties. Subsequent to acquisition of the Target Properties on 30 June 2010, the carrying amount of the Target Properties was revalued to the assumed valuation of $1.23 billion. (4) Had the distribution in August 2010 of Ascott REIT’s distributable income of $21.8 million for the period from 1 January 2010 to 30 June 2010 been adjusted on 30 June 2010, the adjusted NAV per unit for the Existing Portfolio and Enlarged Portfolio would be $1.34 and $1.31, respectively.

64 Pro Forma Capitalisation As at 31 December 2009 The table below sets out the pro forma capitalisation of Ascott REITas at 31 December 2009, as adjusted to reflect the issue of 487,518,000 New Units based on an illustrative issue price of $1.15 per New Unit, and the assumption of $244.9 million raised under the Debt Financing upon completion of the Target Acquisitions and the Divestment. As at 31 December 2009 Actual As Adjusted(1) ($’000) ($’000) Short-term debt: Secured debt 5,856 19,219 Unsecured debt 89,856 89,856 Finance lease — 3,836 Total short-term debt 95,712 112,911 Long-term debt: Secured debt 505,588 839,810 Unsecured debt 49,801 293,730 Finance lease — 33,745 Total long-term debt 555,389 1,167,285 Total debt: 651,101 1,280,196

Unitholders’ funds 825,061(2) 1,481,230 Expenses relating to the Equity Fund Raising — (17,709) Total Unitholders’ funds 825,061 1,463,521

Total Capitalisation 1,476,162 2,743,717

Notes: (1) As adjusted to give effect to the Transactions, the Equity Fund Raising and the Debt Financing. (2) Based on the 2009 Audited Consolidated Financial Statements.

65 As at 30 June 2010 The table below sets out the pro forma capitalisation of Ascott REIT as at 30 June 2010, as adjusted to reflect the issue of 487,518,000 New Units based on an illustrative issue price of $1.15 per New Unit, and the assumption of $106.7 million raised under the Debt Financing upon completion of the Target Acquisitions and the Divestment. As at 30 June 2010 Actual As Adjusted(1) ($’000) ($’000) Short-term debt: Secured debt 292,481 214,014 Finance lease — 3,278 Total short-term debt 292,481 217,292 Long-term debt: Secured debt 315,231 687,390 Unsecured debt 49,834 156,134 Finance lease — 26,505 Total long-term debt 365,065 870,029 Total debt: 657,546 1,087,321

Unitholders’ funds 852,794(2) 1,510,522 Expenses relating to the Equity Fund Raising — (17,709) Total Unitholders’ funds 852,794 1,492,813

Total Capitalisation 1,510,340 2,580,134

Notes: (1) As adjusted to give effect to the Transactions, the Equity Fund Raising and the Debt Financing. (2) Based on the 1H2010 Unaudited Consolidated Financial Statements.

66 DISCUSSION OF THE PRO FORMA RESULTS OF OPERATIONS AND FINANCIAL CONDITION OF THE ENLARGED PORTFOLIO The following discussion and analysis of factors affecting the results of operations and financial condition of the Enlarged Group should be read in conjunction with the Unaudited Pro Forma Consolidated Financial Information presented in Appendix C and the Profit Forecast and Profit Projection presented in Appendix E. This discussion contains forward-looking statements that involve various risks and uncertainties. Enlarged Ascott REIT Group’s actual results may differ significantly from those contained in the forward-looking statements. Please see the sections titled “Forward-Looking Statements” and “Risk Factors” in this Offer Information Statement for a discussion of factors that may cause future results to differ significantly from those contained in the forward-looking statements.

Critical Accounting Policies For a discussion of the critical accounting policies of Ascott REIT, please refer to Appendix C — “Unaudited Pro Forma Consolidated Financial Information” of this Offer Information Statement.

Principal Factors Affecting the Enlarged Portfolio’s Results of Operations and Financial Condition Average Daily Rates and Occupancy Rates The Average Daily Rates and occupancy rates are the main factors affecting the revenue of the Enlarged Ascott REIT Group, which are in general affected by, among other things: • general economic conditions affecting the demand for, and the supply of serviced residences in the countries where the properties of the Enlarged Portfolio are located; • general business climate affecting foreign direct investments; • the age and condition of the properties; and • competition from other similar developments. Any reduction in the Average Daily Rates and occupancy rates may lead to a reduction in the Enlarged Ascott REIT Group’s revenue.

Rental rates from Master Leases The Master Leases for the 17 France Target Properties and the two Germany Target Properties will continue to subsist upon completion of the Target Acquisitions. The rental payments under the Master Leases are generally fixed for a period of time. However, the Master Leases provide for annual rental revisions pegged to indices representing construction costs, inflation or commercial rental prices according to market practice. Results of operations may be affected by the rental adjustments depending on the above factors. Upon expiry of the Master Leases, the rental rates will be subject to negotiation and affected by market demand and supply. Accordingly, Ascott REIT’s revenue will be subject to the terms of the new master leases for the relevant properties.

Foreign currency and interest rate fluctuations As Ascott REIT owns, and will own, properties in Singapore, Vietnam, Indonesia, Japan, Australia, the People’s Republic of China, The Philippines and Europe, Ascott REIT’s results of operations were, and will be, affected by the foreign exchange movements in the US dollar, Indonesia Rupiah, the Japanese Yen,the Australian Dollar, the Renminbi, the Philippines Peso, the Euro and the Pound Sterling against the Singapore dollar. Some of Ascott REIT’s existing debts and its future borrowings may be pegged at floating interest rates, and consequently, the interest cost to Ascott REIT for the floating interest rate debts will be subject to fluctuations in interest rates. Based on the assumptions used in the Profit Forecast and Profit Projection presented in Appendix E in this Offer Information Statement, approximately 40% of the total debts of the Enlarged Portfolio is assumed to be pegged at floating interest rates. Although Ascott REIT has and may enter into hedging transactions to partially mitigate the risk of foreign currency and interest rate fluctuations, such hedging may not adequately cover its exposure to such

67 fluctuations. As a result, Ascott REIT’s business, results of operations or financial condition could potentially be adversely affected by foreign currency and interest rate fluctuations. (See the risk factors “Ascott REIT faces foreign currency exchange rate risk” and “The Group is subject to risk relating to interest rate fluctuations” under the section titled “Risk Factors” and the section titled “Forward Looking Statements” in this Offer Information Statement for further details on the factors affecting the Enlarged Portfolio’s results of operations and financial condition.)

Components of the Statement of Total Return The key components of the Statement of Total Return include Gross Revenue, direct expenses, finance costs, Manager’s management fees and net change in fair value of serviced residence properties. Gross Revenue comprises mainly gross rental income, car park income, and hospitality income earned from the properties in the Enlarged Portfolio. Direct expenses comprise staff costs, operation and maintenance expenses, marketing and selling expenses, property tax, serviced residence management fees, depreciation and other direct expenses for the operation, management and marketing of the Properties. Finance costs mainly comprise interest expenses on bank loans and medium term notes as well as amortisation of upfront fees on bank loans and medium term notes and other related costs. Manager’s management fees comprise a base fee of 0.3% per annum of the property values, which are subject to periodic revaluation and a base performance fee of 4% per annum of the Group’s share of Gross Profit. Net change in fair value of serviced residence properties relates to any increase or decrease on valuations of Ascott REIT’s properties, which are to be conducted at least once a year, in accordance with the Trust Deed and the Property Funds Appendix. The change in fair value of serviced residence properties has no impact on the Unitholders’ distribution. For more details, please refer to Appendix E — “Profit Forecast and Profit Projection” of this Offer Information Statement.

Liquidity The Manager expects that the primary liquidity requirements of the Enlarged Portfolio will be to make distributions to Unitholders, its operating activities, capital expenditures for maintenance and expansion of its business and the repayment of borrowings. Ascott REIT’s primary sources of cash have been, and the Manager expects they will be, cash flow from operations, proceeds from issuances of new Units (except those Units issued for partial payment of the Manager’s management fees) and drawdowns under loan facilities and the multi-currency medium term note programme. The Manager is of the view that, in its reasonable opinion, the working capital available to Ascott REITas at the date of lodgment of this Offer Information Statement, after taking into account the loan facilities and multi-currency medium term note programme available to Ascott REIT and the estimated net proceeds from the Equity Fund Raising, is sufficient for the present requirements of Ascott REIT.

Capital Expenditure It is expected that capital expenditure will be incurred for major renovation plans to enhance the EBITDA yield of the property and for improvement works. The Manager has forecast for improvement works at the properties in the Enlarged Portfolio. It has been assumed that the capital expenditure will be funded primarily through cash flow from operations and/or further borrowings.

Indebtedness The pro forma debt of the Enlarged Ascott REIT Group as at 30 June 2010, as adjusted to reflect the $106.7 million expected to be raised under the Debt Financing upon completion of the Target Acquisitions and the Divestment, was $1.1 billion.

68 The pro forma debt of $1.1 billion as at 30 June 2010 comprised secured debt of $901.4 million from bank facilities, $156.1 million medium term notes and finance lease liabilities of $29.8 million. The Enlarged Ascott REIT Group’s borrowings are generally secured on the following: (a) mortgage on subsidiaries’ serviced residence properties and the assignment of the rights, titles and interests with respect to the properties; (b) an assignment of rental proceeds from the properties; (c) an assignment of insurance policies on the properties; (d) a pledge of shares of certain subsidiaries; and (e) a corporate guarantee from Ascott REIT.

69 DISCUSSION OF TRENDS AND PROSPECTS AFFECTING THE ENLARGED PORTFOLIO This discussion contains forward-looking statements that involve various risks and uncertainties. The Enlarged Ascott REIT Group’s actual results may differ significantly from those contained in the forward- looking statements. Please see the sections titled “Forward-Looking Statements” and “Risk Factors” in this Offer Information Statement for a discussion of factors that may cause future results to differ significantly from those contained in the forward-looking statements.

Significant Trends and Conditions of the Market According to Jones Lang LaSalle, the respective markets in which the Target Properties are located suffered adverse effects during the global financial crisis of late 2008 and early 2009. However Jones Lang LaSalle notes that each of the Target Properties is located in capital cities or major commercial and leisure destinations in their respective countries. Generally, Jones Lang LaSalle notes that the outlook for these markets is positive in the medium to long-term. For further information, please refer to Appendix H of this Offer Information Statement.

Business and Financial Prospects of the Enlarged Ascott REIT Group Following the completion of the Transactions, the Enlarged Ascott REIT Group will enjoy balanced exposure to both emerging markets and stable economies. The Enlarged Ascott REIT Group’s portfolio will continue to have significant exposure to the economic growth in key Pan-Asian cities while benefiting from the added diversification to the established serviced residence markets in Europe. Coupled with the additional Master Leases and SR Management Agreements subject to minimum guaranteed NOP per annum, the Enlarged Ascott REIT Group will enjoy greater income stability. The Manager has completed the refurbishment of the two Singapore properties and has re-launched them in July 2010 amidst a buoyant market. Somerset Grand Cairnhill and Somerset Liang Court Property are expected to benefit from the strong demand, with the renovated apartments enjoying premium rates. Additional asset enhancement initiatives, planned or on-going, for selected properties in Vietnam, China and Europe are expected to enhance the returns of the properties when they are completed progressively over the fourth quarter of 2010 and 2011. The Manager remains confident of the long term growth in the markets in which Enlarged Ascott REIT Group operates. Notwithstanding the above, a few special business factors or risks which are unlikely to be known or anticipated by the general investors and which could materially affect the profits of the Enlarged Ascott REIT Group are set out in the section titled “Risk Factors” in this Offer Information Statement.

70 DISCUSSION OF THE HISTORICAL RESULTS OF OPERATIONS AND FINANCIAL CONDITION OF ASCOTT REIT The following discussion and analysis of Ascott REIT’s financial condition and results of operations should be read in conjunction with the 2007 Audited Consolidated Financial Statements, the 2008 Audited Consolidated Financial Statements, the 2009 Audited Consolidated Financial Statements and the 1H2010 Unaudited Consolidated Financial Statements and the related notes and other information incorporated herein by reference to the information presented on the website of Ascott REIT at Ghttp://www.ascottreit.comH. Ascott REIT’s financial statements have been prepared and presented in accordance with RAP 7, which generally comply with principles relating to recognition and measurement of SFRS, which differs in certain material respects from other accounting principles such as US GAAP and IFRS. See the risk factor under the heading “Significant differences exist between Singapore Financial Reporting Standards (“SFRS”) and other accounting principles, such as US GAAP and IFRS, which may be material to investors’ assessment of Ascott REIT’s financial condition” under the section titled “Risk Factors” in this Offer Information Statement. Selected financial data from the Financial Statements including the line items in the statement of total returns, the distribution statement, balance sheet and the statement of cash flows of Ascott REIT, is set out below. Unless otherwise indicated, the selected financial data presented in this selection is based on Ascott REIT’s actual historical financial results, without giving effect to the Transactions or the Equity Fund Raising. In particular, financial data relating to DPU, earnings or loss per Unit and earnings or loss per Units after any adjustment to reflect the issue of New Units under the Equity Fund Raising is set out below and assumes that 487,518,000 New Units are issued pursuant to the Equity Fund Raising at the illustrative issue price of $1.15 per New Unit. Such selected financial data should be read together with the relevant notes to the full Financial Statements, which are available on the website of Ascott REIT at Gwww.ascottreit.comH and are also available for inspection during normal business hours at the registered office of the Manager at 8 Shenton Way, #13-01, Singapore 068811, from the date of this Offer Information Statement up to and including the date falling six months after the date of this Offer Information Statement(1). Save for the Financial Statements which are deemed incorporated into this Offer Information Statement by reference, information contained on the website of Ascott REIT does not constitute part of this Offer Information Statement. The 1H2010 Unaudited Consolidated Financial Statements have not been reviewed and audited by Ascott REIT’s auditors.

(1) Prior appointment will be appreciated.

71 Results of Operations The statements of total return of Ascott REIT for each of FY2007, FY2008, FY2009, 1H2009 and 1H2010 are set out below: Audited Audited Audited Unaudited Unaudited FY2007 FY2008 FY2009 1H2009 1H2010 $’000 $’000 $’000 $’000 $’000 Gross Revenue 154,837 192,381 175,522 85,095 87,905 Direct expenses (85,139) (96,888) (90,969) (44,399) (47,005) Gross Profit 69,698 95,493 84,553 40,696 40,900 Finance income 776 1,056 723 325 632 Other income 927 96 534 398 106 Audit fees (619) (804) (850) (473) (409) Finance costs (15,289) (20,827) (23,741) (11,795) (11,442) Manager’s management fees (5,944) (8,123) (7,451) (3,667) (3,666) Professional fees (928) (1,143) (977) (454) (384) Trustee’s fees (168) (203) (198) (100) (97) Foreign exchange gain/ (loss) — realised 333 (427) (246) (354) (591) Foreign exchange gain/ (loss) — unrealised 3,463 (5,437) 27 4,379 219 Other operating expenses (261) (809) (812) (231) (241)

Net income before share of loss of associate 51,988 58,872 51,562 28,724 25,027 Share of profit/(loss) of associate (net of tax) 150 6 (8) (4) (31) Net income 52,138 58,878 51,554 28,720 24,996 Net change in fair value of serviced residence properties 147,412 (93,951) (49,361) (61,025) 35,486 Net change in fair value of financial derivatives (7,588) 1,357 (3,072) 639 (898) Renovation costs written off (3,323) (1,742) — — — Total return/(loss) for the year/period before income tax 188,639 (35,458) (879) (31,666) 59,584 Income tax expense (22,005) (2,461) (14,630) (4,921) (7,088) Total return/(loss) for the year/period 166,634 (37,919) (15,509) (36,587) 52,496

Total return/(loss) attributable to: Unitholders 160,537 (42,180) (21,133) (38,892) 48,246 Non-controlling interests 6,097 4,261 5,624 2,305 4,250 166,634 (37,919) (15,509) (36,587) 52,496

Distributable Income 45,069 53,659 45,207 21,852 21,824 Earnings per Unit (cents) — basic and diluted 27.64 (6.94) (3.44) (6.35) 7.81 Adjusted Earnings per Unit (cents) — basic and diluted — — 2.22(1) — 14.80(2) Distribution per Unit (cents) 7.70 8.78 7.32 3.55 3.53 Pro forma Distribution per Unit (cents) — — 7.62(1) — 3.76(2) Notes: (1) Adjusted for the pro forma financial effects of the Transactions for FY2009, as if (a) the Transactions and the Equity Fund Raising were completed on 1 January 2009, (b) the proceeds from the Divestment was $168.5 million, (c) the Debt Financing of $177.8 million was completed on 1 January 2009 and (d) additional borrowings of $40.1 million was drawn on 1 December 2009 for the acquisition of Citadines Munich Arnulfpark. (2) Adjusted for the pro forma financial effects of the Transactions for 1H2010, as if (a) the Transactions and the Equity Fund Raising were completed on 1 January 2010, (b) the proceeds from the Divestment was $157.1 million and (c) the Debt Financing of $244.9 million was completed on 1 January 2010.

72 Liquidity and Capital Resources The statements of cash flows of Ascott REIT for FY2009 and 1H2010 are set out below: Audited Unaudited FY2009 1H2010 $’000 $’000 Cash flows from operating activities Total (loss)/return before income tax (879) 59,584 Adjustments for: Net change in fair value of serviced residence properties 49,361 (35,486) Depreciation of plant and equipment 6,088 3,015 Finance costs 23,741 11,442 Finance income (723) (632) Foreign exchange gain — unrealised (27) (219) Loss/(gain) on disposal of plant and equipment 56 (13) Manager’s management fees paid/payable in units 3,726 1,833 Net change in fair value of financial derivatives 3,072 898 (Reversal)/recognition of impairment loss on trade and other receivables (127) 6 Share of loss of associate 8 31 Operating income before working capital changes 84,296 40,459 Changes in working capital: Inventories 145 (64) Trade and other receivables 4,423 800 Trade and other payables (3,119) (4,267) Cash generated from operations 85,745 36,928 Income tax paid (6,893) (3,695) Net cash from operating activities 78,852 33,233

Cash flows from investing activities Acquisition of subsidiaries, net of cash acquired (21,832) — Capital expenditure on serviced residence properties (2,992) (463) Interest received 723 632 Proceeds from disposal of plant and equipment 68 42 Purchase of plant and equipment (6,569) (12,082) Net cash used in investing activities (30,602) (11,871) Cash flows from financing activities Distributions to Unitholders (48,025) (23,269) Dividend paid to non-controlling interests (2,453) (3,138) Interest paid (24,558) (11,838) Proceeds from borrowings 139,877 138,108 Repayment of borrowings (105,746) (128,010) Net cash used in financing activities (40,935) (28,147) Net increase/(decrease) in cash and cash equivalents 7,315 (6,785) Cash and cash equivalents at beginning of the year/period 56,110 63,228 Effect of foreign exchange rate changes on cash balances (197) 81 Cash and cash equivalents at end of the year/period 63,228 56,524

73 Financial Position The balance sheets of Ascott REIT as at 31 December 2009 and 30 June 2010 are set out below: Audited Unaudited 31 Dec 2009 30 Jun 2010 $’000 $’000 Non-current assets Serviced residence properties 1,528,311 1,561,832 Plant and equipment 28,555 37,836 Associate 3,416 3,428 Financial derivatives 195 34 Deferred tax assets 213 307 1,560,690 1,603,437

Current assets Inventories 345 413 Trade and other receivables 27,718 27,129 Cash and cash equivalents 63,228 56,524 91,291 84,066 Total assets 1,651,981 1,687,503

Non-current liabilities Financial liabilities 555,389 365,065 Financial derivatives 19,051 3,629 Deferred tax liabilities 7,113 9,783 581,553 378,477 Current liabilities Trade and other payables 72,307 68,252 Financial liabilities 95,712 292,481 Financial derivatives — 15,359 Provision for taxation 5,612 6,532 173,631 382,624 Total liabilities 755,184 761,101 Net assets 896,797 926,402

Represented by: Unitholders’ funds 825,061 852,794 Non-controlling interests 71,736 73,608 Net assets 896,797 926,402 Units in issue (’000) 617,210 618,806 Net asset value per Unit ($) 1.34 1.38 Adjusted net asset value per Unit 1.31(1) 1.33(2)

Notes: (1) Adjusted for the pro forma financial effects of the Transactions on the NAV as at 31 December 2009, as if the Transactions and the Equity Fund Raising were completed on 31 December 2009. (2) Adjusted for the pro forma financial effects of the Transactions on the NAV as at 30 June 2010, as if the Transactions and the Equity Fund Raising were completed on 30 June 2010.

74 Discussion of historical financial results of the Existing Portfolio Statement of Total Return for FY2008 compared to FY2007 Gross Revenue Gross Revenue of $192.4 million for FY2008 increased by $37.5 million or 24% from FY2007. The increase in revenue was mainly due to strong operating performances from the serviced residences in Singapore, China and Vietnam as well as the full year contribution from the additional properties acquired in FY2007.

Overall Revenue Per Available Unit (“REVPAU”) Overall REVPAU increased 10% from $132 in FY2007 to $145 in FY2008, mainly driven by higher Average Daily Rates. Serviced residences in Singapore, China and Vietnam achieved strong REVPAU growth for FY2008 compared to FY2007.

Gross Profit Gross profit for FY2008 was $95.5 million, an increase of $25.8 million or 37% over FY2007. This was mainly due to the improved performance from Ascott REIT’s properties in Singapore, China and Vietnam, and the full year contribution from the additional properties acquired in FY2007.

Unitholders’ Distribution Ascott REIT achieved Unitholders’ distribution of $53.7 million for FY2008, an increase of $8.6 million or 19% over FY2007. DPU for FY2008 was 8.78 cents, 14% higher than FY2007. The increase was attributed to strong operating performance and accretive acquisitions.

Statement of Total Return for FY2009 compared to FY2008 Gross Revenue Gross Revenue of $175.5 million for FY2009 was $16.9 million or 9% lower as compared to FY2008. The decrease in revenue was mainly due to weaker demand for serviced residences in Singapore as in FY2008, these serviced residences benefitted from the higher rental rates contracted in the earlier months of FY2008 before the global financial crisis. The decrease was also attributable to the closure of some apartment units for refurbishment in Singapore, the one-off boost to FY2008 results from the 2008 Beijing Olympics, the increased competition from new supply in Beijing and Shanghai and the general global economic downturn. The decrease in revenue was partially offset by contribution from Somerset West Lake which was acquired in April 2009.

REVPAU Overall REVPAU declined 16% from $145 in FY2008 to $122 in FY2009, affected by reductions in both Average Daily Rates and occupancies at the Group’s serviced residences.

Gross Profit Gross Profit for FY2009 was $84.6 million, a decrease of $10.9 million or 11% as compared to FY2008. This was mainly due to the decline in operating performances from the Group’s properties, particularly in Singapore and China.

Unitholders’ Distribution Ascott REIT achieved Unitholders’ distribution of $45.2 million for FY2009, $8.5 million or 16% lower as compared to FY2008. DPU for FY2009 was 7.32 cents, 17% lower than FY2008. The decrease was mainly attributed to the weaker operating performance from the properties in Singapore and China.

Statement of Total Return for 1H2010 compared to 1H2009 Gross Revenue Gross Revenue of $87.9 million for 1H2010 increased by $2.8 million or 3% from 1H2009. The increase in revenue was mainly due to strong performance from the Group’s serviced residences in Singapore, China and The Philippines.

75 REVPAU Overall REVPAU increased by 3% from $120 in 1H2009 to $123 in 1H2010, driven by an increase in the occupancies of the Group’s serviced residences. The Group’s occupancy increased from 71% in 1H2009 to 79% in 1H2010.

Gross Profit In line with the increase in revenue, Gross Profit for 1H2010 increased by $0.2 million or 1% from 1H2009. Gross Profit in 1H2010 was impacted by (a) additional property tax expenses for one of the serviced residences in Singapore due to the reassessment of property annual value by IRAS, and (b) increase in utility rates for serviced residences in Vietnam and The Philippines.

Unitholders’ Distribution Unitholders’ distribution of $21.8 million for 1H2010 remained at the same level as that in 1H2009. DPU for 1H2010 of 3.53 cents was lower by 1% from 1H2009 due to the higher number of units in issue at 1H2010 arising from partial payment of manager’s management fees in Units.

Cash Flows FY2009 During FY2009, the cash balance of Ascott REIT and its subsidiaries increased by $7.1 million to $63.2 million as compared to FY2008. The increase was mainly due to cash inflows generated from operating activities of $78.8 million, offset by cash outflows from financing activities and investing activities of $40.9 million and $30.6 million respectively. The most significant cash outflow from the investing activities was the $21.8 million used for the acquisition of subsidiaries which own the property, Somerset West Lake. The net cash outflow from financing activities mainly related to the payment of distributions to unitholders and interest of $48.0 million and $24.6 million respectively, partially offset by proceeds from borrowings.

1H2010 During 1H2010, the cash balance of Ascott REIT and its subsidiaries decreased by $6.7 million to $56.5 million as compared to FY2009. The decrease was mainly due to cash outflows from financing activities and investing activities of $28.1 million and $11.9 million respectively, partially offset by cash inflows generated from operating activities of $33.2 million. The net cash outflows mainly related to the distributions paid to Unitholders of $23.3 million and payment for the refurbishment of serviced residence properties of $12.1 million during 1H2010.

Others To the best of the Manager’s knowledge and belief, save as disclosed in this Offer Information Statement, no event has occurred from 30 June 2010, being the last day of the period covered by Ascott REIT’s second quarter financial results, to the Latest Practicable Date, which may have a material effect on the financial position and results of Ascott REIT. (See the section “Risk Factors” of this Offer Information Statement for a discussion of certain factors to be considered in connection with an investment in the New Units.)

76 INFORMATION RELATING TO ASCOTT REIT

General Development of Ascott REIT The general development of the business of Ascott REIT for the three most recent completed financial years to the Latest Practicable Date is set out below: Date Event September 2010 The Manager obtained the approval of Unitholders at the EGM for the Transactions, the Equity Fund Raising and the CapitaLand Group Placement. August 2010 The Manager announced that it had obtained approval in-principle from the SGX-ST for the listing of New Units and the Transactions August 2010 TAL and the Trustee entered into a supplemental ROFR to, among other things, expand the ROFR to include Europe August 2010 The Manager entered into the Underwriting Agreement August 2010 The Trustee entered into the Sale and Purchase Agreements and the Ascott Beijing Sale and Purchase Agreement for the acquisition of the Target Properties and the divestment of Ascott Beijing August 2010 Ascott REIT, through its indirect subsidiary, entered into a sale and purchase agreement for the divestment of Country Wood, Jakarta, Indonesia September 2009 Establishment of $1,000,000,000 Multicurrency Medium Term Note Programme May 2009 Ascott REIT obtained a corporate family rating of Baa3, which is within the Investment grade band, from Moody’s Investors Service Inc. April 2009 Completion of the acquisition of a 70.0% effective interest in Somerset West Lake, Hanoi, Vietnam June 2008 Completion of the acquisition of a 100.0% effective interest in Somerset St Georges Terrace, Perth, Australia December 2007 Completion of the acquisition of a 100.0% effective interest in 18 rental housing properties in Tokyo, Japan May 2007 Completion of the acquisition of a 100.0% effective interest in Somerset Gordon Heights, Melbourne, Australia April 2007 Completion of the acquisitions of a 100.0% effective interest in Somerset Azabu East, Tokyo and the remaining 60.0% effective interest in Somerset Roppongi, Tokyo, Japan March 2007 Completion of the acquisition of the remaining 40.2% effective interest in Somerset Chancellor Court, Ho Chi Minh City, Vietnam March 2007 Completion of the acquisition of a 100.0% effective interest in Ascott Makati March 2007 Completion and issue of 105,334,329 Units raising approximately $199.0 million by way of a preferential offering, a public offer and a private placement February 2007 Ascott REIT was assigned a Baa2 corporate family investment grade rating by Moody’s Investors Service February 2007 Completion of the acquisition of the remaining 10.0% effective interest in Somerset Olympic Tower Property, Tianjin, China January 2007 Completion of the acquisition of a 26.8% effective interest in Somerset Chancellor Court, Ho Chi Minh City, Vietnam

The Manager of Ascott REIT Ascott REIT is externally managed by Ascott Residence Trust Management Limited. The Manager was incorporated in Singapore under the Companies Act under the name of “ART Management Pte Ltd” on 22 November 2005 and changed its name to “ART Management Limited” in connection with its conversion into a public limited company. The Manager subsequently changed its name

77 to “Ascott Residence Trust Management Limited” on 20 January 2006. The Manager is a wholly-owned subsidiary of TAL. The Manager has a paid-up capital of $1.0 million. Its registered office is located at 8 Shenton Way, #13-01, Singapore 068811 and its telephone number is +65 6389 9388. The Manager is appointed in accordance with the terms of the Trust Deed. The board of directors (including the independent Directors) is entrusted with the responsibility for the overall management of the Manager. In addition, the Manager appoints experienced and well-qualified personnel to run its day-to-day operations. The primary role of the Manager is to set the strategic direction of Ascott REITand give recommendations to the Trustee on acquisition of new assets, divestment or enhancement of the assets of Ascott REIT in accordance with its stated investment strategy. As the Manager, it has general powers of management over the assets of Ascott REIT. Its main responsibility is to manage the assets and liabilities of Ascott REIT for the benefit of the Unitholders. The Manager does this with a focus on generating income and, where appropriate, increasing Ascott REIT’s assets over time so as to enhance the returns from the investments, and ultimately the distributions and total return to Unitholders. The other functions and responsibilities of the Manager include: (a) using its best endeavors to carry on and conduct its business in a proper and efficient manner and to conduct all transactions with or for Ascott REIT on arm’s length basis; (b) preparing property plans on an annual basis for review by the Directors, including proposals and forecasts on net income, capital expenditure, sales and valuations, explanation of major variances to previous forecasts, written commentary on key issues and relevant assumptions. These plans explain the performance of Ascott REIT’s assets; (c) preparing the accounts of Ascott REIT. (d) ensuring compliance with relevant laws and regulations, including the applicable provisions of the SFA, the Listing Manual, the Property Fund Appendix and the Trust Deed; and (e) attending to all regular communications with Unitholders. The Manager can be removed, under certain circumstances outlined in the Trust Deed, by notice in writing given by the Trustee, in favour of a corporation appointed by the Trustee upon the occurrence of certain events, including by a resolution passed by simple majority of unitholders present and voting at a meeting of Unitholders duly convened and held in accordance with the provision of the Trust Deed. (See the section titled “Description of the Units” in this Offer Information Statement for further details.)

78 The names and addresses of the directors of the Manager (the “Directors”) as at the Latest Practicable Date are as follow: Name Position Address Mr Lim Jit Poh Chairman and Independent Non-Executive 21 Stevens Close Director Singapore 257962 Mr Liew Mun Leong Deputy Chairman and Non-Independent Non- 49 Chancery Lane Executive Director Singapore 309578 Mr Chong Kee Hiong Chief Executive Officer and Executive Director 132 Binchang Rise Singapore 579966 Mr Ku Moon Lun Independent Non-Executive Director 7B, Craigmount Block B, 7th Floor 34 Stubbs Road Hong Kong Mr Chandra Das S/O Rajagopal Sitaram Independent Non-Executive Director 28 Cassia Drive Singapore 289721 Mr Giam Chin Toon @ Jeremy Giam Independent Non-Executive Director 3 Bishopsgate Singapore 249969 Mr Lim Ming Yan Non-Independent Non-Executive Director 1F Pine Grove #14-30 Singapore 595001 Ms Jennie Chua Non-Independent Non-Executive Director 11D Mount Sinai Lane #03-15 Glentrees Singapore 277053 Mr Wen Khai Meng Non-Independent Non-Executive Director 6 Begonia Lane Singapore 805822

Information on the Units Number of Units As at the Latest Practicable Date, there were 619,580,074 Units issued and outstanding.

Substantial Unitholders of Ascott REIT and their Unitholdings The following table sets out the unitholdings of the Substantial Unitholders. Based on the Register of Substantial Unitholders maintained by the Manager, the Substantial Unitholders and their respective interests (direct and indirect) in the Units as at the Latest Practicable Date are as follows: Number of Units % The Ascott Limited 295,798,484(1) 47.74 CapitaLand Limited(2) 295,798,484(2) 47.74(2) Temasek Holdings (Private) Limited(3) 300,576,484(3) 48.51(3) Notes: (1) Somerset Capital Pte Ltd and the Manager are wholly-owned subsidiaries of TAL. Accordingly, TAL directly, and deemed through its interest in Somerset Capital Pte Ltd and the Manager, has an aggregate interest of 295,798,484 Units by virtue of Section 7 of the Companies Act. (2) TAL is a subsidiary of CapitaLand. Somerset Capital Pte Ltd and the Manager are wholly-owned subsidiaries of TAL. Accordingly, CapitaLand is deemed through its interest in TAL, Somerset Capital Pte Ltd and the Manager to have an aggregate interest in their holdings of 295,798,484 Units by virtue of Section 7 of the Companies Act. (3) By virtue of Section 7 of the Companies Act, Temasek Holdings (Private) Limited is deemed to have an interest in 300,576,484 Units in which Temasek Holdings (Private) Limited’s associated companies have or are deemed to have an interest. Temasek Holdings (Private) Limited is wholly-owned by the Minister for Finance (Incorporated).

79 History of Issuance of Units The Units issued for cash or services within the 12 months immediately preceding the Latest Practicable Date are set out below. Units issued to the Manager as partial payment of its management fees and as payment of acquisition fees are in accordance with the terms of the Trust Deed. Date Number of Units Issued 4 August 2010 An aggregate of 773,988 Units at an issue price of $1.1919 per Unit to the Manager as payment of 50.0% of the base fee and base performance fee (as defined in the Trust Deed) of the management fees for the period from 1 April 2010 to 30 June 2010 18 May 2010 An aggregate of 790,768 Units at an issue price of $1.1464 per Unit to the Manager as payment of 50.0% of the base fee and base performance fee (as defined in the Trust Deed) of the management fees for the period from 1 January 2010 to 31 March 2010 5 February 2010 An aggregate of 805,564 Units at an issue price of $1.1607 per Unit to the Manager as payment of 50.0% of the base fee and base performance fee (as defined in the Trust Deed) of the management fees for the period from 1 October 2009 to 31 December 2009 1 December 2009 An aggregate of 194,323 Units at an issue price of $1.0666 per Unit to the Manager as payment of the acquisition fee (as defined in the Trust Deed) in relation to the completion of the acquisition of The Ascott (Vietnam) Investment Pte Ltd 9 November 2009 An aggregate of 908,602 Units at an issue price of $1.0477 per Unit to the Manager as payment of 50.0% of the base fee and base performance fee (as defined in the Trust Deed) of the management fees for the period from 1 July 2009 to 30 September 2009 3 August 2009 An aggregate of 1,064,557 Units at an issue price of $0.8941 per Unit to the Manager as payment of 50.0% of the base fee and base performance fee (as defined in the Trust Deed) of the management fees for the period from 1 April 2009 to 30 June 2009

Price Range and Trading Volume of the Units on the SGX-ST The closing price range for the Units and the average daily volume of Units traded on the SGX-ST for each of the 12 calendar months immediately preceding September 2010 and for the period commencing on 1 September 2010 to the Latest Practicable Date are set out below: Volume of Units Price Range ($ per Unit) Traded Month Lowest Price Highest Price (millions) September 2009 0.86 1.01 0.9 October 2009 0.93 1.09 1.0 November 2009 1.03 1.09 0.5 December 2009 1.08 1.20 0.8 January 2010 1.14 1.39 2.5 February 2010 1.13 1.18 0.9 March 2010 1.15 1.33 1.5 April 2010 1.17 1.28 1.3 May 2010 1.02 1.20 1.4 June 2010 1.06 1.15 0.4 July 2010 1.09 1.24 1.0 August 2010 1.11 1.26 2.0 1 September to the Latest Practicable Date 1.11 1.19 2.1 Source: Bloomberg* * Bloomberg L.P.has not consented to the inclusion of the price range of Units quoted under this section and is thereby not liable for such information under Sections 253 and 254 of the Securities and Futures Act. The Manager and the Joint Lead Managers, Bookrunners and Underwriters have included the above price range of Units in their proper form and context in this Offer Information Statement and have not verified the accuracy of these statements.

80 DESCRIPTION OF THE UNITS The Units will be issued under the Trust Deed, which is a complex document. The following statements are brief summaries of the more important rights and privileges of Unitholders conferred by the laws of Singapore and the Trust Deed. These statements summarise the material provisions of the Trust Deed but are qualified in their entirety by, and are subject to, the contents of the Trust Deed and the laws of Singapore. Prospective investors should refer to the Trust Deed itself to confirm specific information or for a detailed understanding of Ascott REIT. The Trust Deed is available for inspection at the registered office of the Manager at 8 Shenton Way #13-01, Singapore 068811.

Units The rights and interests of Unitholders are contained in the Trust Deed. Under the Trust Deed, these rights and interests are safeguarded by the Trustee. Each Unit represents an undivided interest in Ascott REIT. A Unitholder has no equitable or proprietary interest in the underlying assets of Ascott REIT and is not entitled to the transfer to it of any asset (or any part thereof) or of any real estate or real estate-related assets (or any part thereof) of Ascott REIT. As at the Latest Practicable Date, Ascott REIT has 619,580,074 Units issued which are fully paid-up in cash. No certificate shall be issued to Unitholders by either the Manager or the Trustee in respect of Units. For so long as Ascott REIT is listed, quoted and traded on the SGX-STand/or any other stock exchange of repute in any country in any part of the world and the Units have not been suspended from such listing, quotation and trading for more than 60 consecutive calendar days or having not been de-listed permanently, the Manager shall, pursuant to the Depository Agreement, appoint CDP as the Unit depository for Ascott REIT, and all Units issued will be represented by entries in the register of Unitholders in the name of, and deposited with, CDP as the registered holder of such Units thereof. The Manager or the agent appointed by the Manager shall issue to CDP not more than 10 Business Days after the issue of Units a confirmation note confirming the date of issue, the number of Units issued and, if applicable, stating that the Units are issued under a moratorium and the expiry date of such moratorium and for the purposes of the Trust Deed, such confirmation note shall be deemed to be a certificate evidencing title to the Units issued.

New Units As Ascott REIT is listed on the SGX-ST, the Manager may issue new Units without the prior approval of Unitholders if the aggregate number of Units issued in a given financial year does not exceed 10.0% of the number of Units then in issue. Alternatively, the Manager may issue new Units where Unitholders have given a general mandate for the issue of a number of new Units not exceeding 50.0% of the number of Units in issue, of which the aggregate number of Units issued other than on a pro rata basis to existing Unitholders must not be more than 20.0% of the number of Units in issue and the issue (together with any other issue of Units in the financial year, from the time the mandate is passed) does not exceed 50.0% of the number of Units in issue. In the event the Manager wishes to issue new Units exceeding the above thresholds in the relevant year, specific prior approval by way of a Unitholders’ Extraordinary Resolution must be sought. On 30 April 2010, Unitholders approved the general mandate under Rule 887 of the Listing Manual for the issue of new Units at its annual general meeting (the “General Mandate”), provided that such new Units issued do not exceed (a) 100.0% of the total number of issued Units for a renounceable rights issue on a pro rata basis(1) and (b) 50.0% of the total number of issued Units for issue other than a renounceable rights issue on a pro rata basis of which up to 20.0% may be issued other than on a pro rata basis to Unitholders, provided that the total number of Units which may be issued pursuant to paragraphs (a) and (b) shall not exceed 100.0% of the total number of issued Units. The General Mandate is valid until the next annual general meeting.

Unitholders An up-to-date register of Unitholders shall be kept in Singapore by the Trustee. For so long as Ascott REIT is listed, the Trustee shall record CDP as the registered holder of all Units in issue.

(1) The SGX-ST had in a press release dated 19 February 2010 mentioned that a renounceable rights issue on a pro rata basis of up to 100.0% of the total number of issued Units would be allowed and that this limit would be in effect until 31 December 2010, and reviewed thereafter.

81 Transfer of Units The transfer of Units between Depositors shall be effected electronically through CDP making an appropriate entry in the CDP register in respect of the Units that have been transferred in accordance with CDP requirements. There are no restrictions as to the number of Units which may be transferred by a transferor to a transferee. No transfer or purported transfer of a Unit other than a transfer made in accordance with the Trust Deed shall entitle the transferee to be registered in respect thereof; neither shall any notice of such transfer or purported transfer be entered upon CDP’s register.

General Meetings Ascott REIT is required to hold annual general meetings once every calendar year and not more than 15 months from the last preceding annual general meeting. Ascott REIT’s annual general meeting shall take place within four months from its financial year-end. The Trustee or the Manager may (and the Manager shall at the request in writing of not less than 50 Unitholders or from Unitholder(s) representing not less than one-tenth of the number of the Unitholders, whichever is the lesser) at any time convene a meeting of Unitholders at such time and place as may be thought fit. Any such meeting convened shall be held in Singapore. An Extraordinary Resolution, requiring the approval of at least 75.0% or more of the total number of votes cast for and against such resolution at a meeting of Unitholders or Depositors named in CDP’s register as at 48 hours before the time of such meeting, is necessary for the following matters as set out below: • Sanction any modification, alteration or addition to the provisions of the Trust Deed which shall be agreed by the Trustee and the Manager as provided in the Trust Deed; • Sanction a supplemental deed increasing the maximum permitted limit or any change in the structure of the Base Fee, the Performance Fee, the Acquisition Fee, the Divestment Fee (each as defined in the Trust Deed) and the Trustee’s remuneration as provided for under the Trust Deed; • Sanction any issue of Units by the Manager under the circumstances set out for an issue of Units other than under circumstances provided for under the Trust Deed; • Removal of the Trustee of Ascott REIT; and • Direct the Trustee to commence any winding up action under Section 295 of the Securities and Futures Act. Any decision to be made by resolution of the Unitholders other than those specified above shall be by an Ordinary Resolution, requiring the approval of at least 50% or more of the total number of votes cast for and against such resolution at a meeting of Unitholders or Depositors named in CDP’s register as at 48 hours before the time of such meeting, unless required by the SFA, the Property Funds Appendix and/or the Listing Manual.

Termination of Ascott REIT The Manager and the Trustee may terminate Ascott REITas empowered under the Trust Deed. Pursuant to such termination, the Trustee shall sell all investments then remaining in its hands as part of the Deposited Property and shall repay any borrowing effected by Ascott REIT, together with any interest accrued but remaining unpaid and all other debts and liabilities before applying the balance to the Unitholders.

Indemnity The Manager shall be entitled for the purpose of indemnity against any actions, costs, claims, damages, expenses or demands to which it may be put as Manager to have recourse to the Deposited Property or any part thereof, save where such actions, costs, claims, damages, expenses or demands is occasioned by bad faith, fraud, gross negligence, wilful default or material breach of the Trust Deed by the Manager. The Trustee shall be entitled for the purpose of indemnity against any actions, costs, claims, damages, expenses or demands to which it may be put as Trustee to have recourse to the Deposited Property or any part thereof but this shall be without prejudice to the obligation of the Manager to indemnify and/or reimburse the Trustee pursuant to the provisions of the Trust Deed, in the absence of bad faith, fraud, gross negligence, wilful default, breach of any provision of the Trust Deed or breach of trust by the Trustee.

82 GENERAL INFORMATION

Legal and Arbitration Proceedings To the best of the Manager’s knowledge and belief, and as disclosed by TAL and/or the Vendor Companies in relation to the Target Properties and Property Holding Companies, there are no legal or arbitration proceedings, including those which are pending or known to be contemplated, which, in the opinion of the Manager, may have or have had in the last 12 months before the date of lodgment of this Offer Information Statement, a material effect on the financial position or profitability of Ascott REIT.

Material Contracts There were no material contracts entered into by the Trustee or the Manager, other than contracts entered into in Ascott REIT’s ordinary course of business, for the period of two years ending on the day before the date of lodgment of this Offer Information Statement, save for: (a) the sale and purchase agreement dated 5 November 2008 entered into between TAHL, Somerset (Vietnam) Investments Pte Ltd and the Trustee in relation to the acquisition of a 70.0% effective interest in Somerset West Lake, Hanoi for a consideration of US$15.4 million (equivalent to approximately $22.9 million); (b) the trust deed dated 9 September 2009 entered into between Ascott REIT MTN Pte. Ltd., the Trustee and The Bank of New York Mellon in relation to the $1,000,000,000 multicurrency medium term note programme (the “MTN”); (c) the programme agreement dated 9 September 2009 entered into between Ascott REIT MTN Pte. Ltd., the Trustee and DBS Bank Ltd. in relation to the MTN; (d) the agency agreement dated 9 September 2009 entered into between Ascott REIT MTN Pte. Ltd., the Trustee and The Bank of New York Mellon in relation to the MTN; (e) the sale and purchase agreement dated 5 August 2010 entered into between PT Grahaindo Kreasi Abadi, an unrelated party, and P.T. Indonesia America Housing, an indirect subsidiary of Ascott REIT, in relation to the sale of Country Woods, Jakarta for a consideration of approximately US$24.2 million; (f) the sale and purchase agreement dated 20 August 2010 entered into between Citadines Singapore Mount Sophia Pte Ltd and the Trustee in relation to the Singapore Target Acquisition for a consideration of $107.0 million; (g) the sale and purchase agreement dated 20 August 2010 entered into between TAHL and the Trustee in relation to the Vietnam Target Acquisition for an estimated consideration of US$38.5 million (equivalent to approximately $53.1 million); (h) the sale and purchase agreement dated 20 August 2010 entered into between Ascott Europe and the Trustee in relation to the acquisitions of Ascott Netherlands from Ascott Europe, for an estimated net consideration of e208.6 million (in relation to the Europe Target Properties (other than the UK Target Properties) and £106.7 million (in relation to the UK Target Properties, excluding Citadines London Holborn-Covent Garden), (equivalent to approximately $585.9 million) and the acquisitions of Citadines Holborn from Ascott Jersey, for an estimated consideration of £32.9 million (equivalent to approximately $68.2 million); (i) the sale and purchase agreement dated 20 August 2010 entered into between Ascott Investments Pte. Ltd. and the Trustee in relation to the Divestment for an estimated sale consideration of $214.0 million; (j) the TAL Undertaking; (k) the Undertaking; (l) the Deed of Guarantee; (m) the supplemental right of first refusal agreement dated 20 August 2010 entered into between TAL and the Trustee to (i) expand the ROFR to include the Relevant Assets in any country in the world and (ii) expand the right of first refusal granted to AIM and/or any of its affiliates to include the right to lease

83 the Relevant Asset as a master lessee in addition to the existing right to provide property management services in respect of the Relevant Assets; (n) the underwriting agreement dated 20 August 2010 entered into between Credit Suisse and DBS (as Joint Lead Managers, Bookrunners and Underwriters) and the Manager for the offer and placement of New Units under the Equity Fund Raising; and (o) the supplemental agreement dated 13 September 2010 to the Underwriting Agreement entered into between Credit Suisse and DBS (as Joint Lead Managers, Bookrunners and Underwriters) and the Manager.

Breach of Terms and Conditions or Covenants of Credit Arrangement or Bank Loan To the best of the Manager’s knowledge and belief, Ascott REIT is not in breach of any of the terms and conditions or covenants associated with any credit arrangement or bank loan which could materially affect Ascott REIT’s financial position and results or business operations, or the investments by Unitholders.

Significant Changes Save as disclosed above, there have been no material changes in the affairs of Ascott REIT from the end of the six-month period ended 30 June 2010 to the Latest Practicable Date. Ascott REIT has an opportunity to enlarge its portfolio with the Target Acquisitions. The Manager is in favour of the Target Acquisitions as it believes that Ascott REIT and the Unitholders will benefit from the inclusion of the Target Properties to the portfolio of Ascott REIT. If there are material changes in the affairs of Ascott REITafter the date of this Offer Information Statement which are required to be disclosed by law and/or under the Listing Manual, the Manager will announce such changes via an announcement through the SGXNET. All Unitholders and investors should take note of any such announcements and shall be deemed to have notice of such changes upon the release of the announcements.

Trading of Units The Manager is not aware of any significant trading suspension on the SGX-ST during the three years immediately preceding the Latest Practicable Date. The Manager believes that the Units are regularly traded on the SGX-ST.

Statement by Experts Independent Accountants’ Report on the Unaudited Pro Forma Consolidated Financial Information and the Profit Forecast and Profit Projection The Independent Accountants’ Report on the Unaudited Pro Forma Consolidated Financial Information in Appendix D and the Independent Accountants’ Report on Profit Forecast and Profit Projection in Appendix F of this Offer Information Statement were prepared by KPMG, Certified Public Accountants, which is located at 16 Raffles Quay, #22-00 Hong Leong Building, Singapore 048581. The Independent Accountants’ Report on the Unaudited Pro Forma Consolidated Financial Information dated 13 September 2010 in Appendix D and the Independent Accountants’ Report on Profit Forecast and Profit Projection dated 13 September 2010 in Appendix F of this Offer Information Statement were prepared by KPMG for the purpose of incorporation in this Offer Information Statement. KPMG has given, and has not, before the lodgment of this Offer Information Statement, withdrawn its written consent to the issue of this Offer Information Statement with the inclusion of the Independent Accountants’ Report on the Unaudited Pro Forma Consolidated Financial Information and the Independent Accountants’ Report on Profit Forecast and Profit Projection in the form and context in which they are included in this Offer Information Statement.

84 Valuations of Target Properties The valuations of the Target Properties and Ascott Beijing were prepared by the following licensed valuers, as the Independent Valuers: Independent Valuers Address Savills Advisory Services Limited (formerly known as Savills 20 Grosvenor Hill, Commercial Properties Limited) London W1K 3HQ United Kingdom Savills Valuation and Professional Services Limited 23/F Two Exchange Square Central, Hong Kong HVS International Temasek Boulevard #23-01A Suntec Tower Four, Singapore 038986 The Independent Valuers have given and have not, before the lodgment of this Offer Information Statement, withdrawn their written consent to the issue of this Offer Information Statement with the inclusion of their names and all references to their names in the form and context in which they are included in this Offer Information Statement. The valuations of the Target Properties and Ascott Beijing were prepared by the Independent Valuers for the purpose of incorporation in this Offer Information Statement.

Independent Serviced Residences Market Overview Report The Independent Serviced Residences Market Overview Report in Appendix H of this Offer Information Statement was prepared by Jones Lang LaSalle Hotels and Jones Lang LaSalle Property Consultants Pte Ltd, which is located at #38-01 Republic Plaza, 9 Raffles Place, Singapore 048619. The Independent Property Consultant has given and has not, before the lodgment of this Offer Information Statement, withdrawn its written consent to the issue of this Offer Information Statement with the inclusion of its name and all references to its name in the form and context in which they are included in this Offer Information Statement. The Independent Serviced Residences Market Overview Report was prepared by the Independent Property Consultant for the purpose of incorporation in this Offer Information Statement.

Consents from Issue Managers and Underwriters Each of Credit Suisse (Singapore) Limited and DBS Bank Ltd. has given, and has not, before the issue of this Offer Information Statement, withdrawn its written consents to being named in this Offer Information Statement as one of the Joint Lead Managers, Bookrunners and Underwriters for the Equity Fund Raising.

Authority to Issue New Units The New Units are issued pursuant to a specific Unitholders’ approval given by Unitholders to the Manager at the EGM.

Miscellaneous Ascott REIT is subject to the Code on Collective Investment Schemes issued by the Authority. The Code on Collective Investment Schemes can be found on the website of the Authority at www.mas.gov.sg. Save as disclosed in this Offer Information Statement, including the Appendices to this Offer Information Statement, the Manager is not aware of any other matters which could materially affect, directly or indirectly, the operations or financial position or results of Ascott REIT. Statements contained in this Offer Information Statement, which are not historical facts, may be forward- looking statements. Such statements are based on the assumptions set forth in this section and are subject to certain risks and uncertainties which could cause actual results to differ materially from those forecast. Under no circumstances should the inclusion of such information herein be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions by the Manager or any other person or that these results will be achieved or are likely to be achieved.

85 RELATED PARTY TRANSACTIONS

The Manager’s Internal Control System The Manager has established an internal control system to ensure that all “interested person transactions” (as defined in the Listing Manual) and/or, as the case may be, an “interested party transactions” (as defined in the Property Funds Appendix) (the “Related Party Transactions”) are undertaken on normal commercial terms and are not be prejudicial to the interests of Ascott REIT or the Unitholders. As a general rule, the Manager must demonstrate to the Audit Committee that such transactions satisfy the foregoing criteria, which may entail obtaining (where practicable) quotations from parties unrelated to the Manager, or obtaining one or more valuations from independent professional valuers (in accordance with the Property Funds Appendix). The Manager maintains a register to record all Related Party Transactionswhich are entered into by Ascott REITand the bases, including any quotations from unrelated parties and independent valuations obtained to support such bases, on which they are entered into. The Manager also incorporates into its internal audit plan a review of all Related Party Transactions entered into by Ascott REIT. The Audit Committee reviews the internal audit reports at least twice a year to ascertain that the guidelines and procedures established to monitor Related Party Transactions have been complied with. In addition, the Trustee also has the right to review such audit reports to ascertain that the Property Funds Appendix have been complied with. Further, the following procedures are undertaken: (a) transactions (either individually or as part of a series or if aggregated with other transactions involving the same related party during the same financial year) equal to or exceeding $100,000 in value but below 3.0% of the value of Ascott REIT’s latest audited consolidated NTA are subject to review by the Audit Committee at regular intervals; (b) transactions (either individually or as part of a series or if aggregated with other transactions involving the same related party during the same financial year) equal to or exceeding 3.0% but below 5.0% of the value of Ascott REIT’s latest audited consolidated NTA are subject to the review and prior approval of the Audit Committee. Such approval shall only be given if the transactions are on normal commercial terms and are consistent with similar types of transactions made by the Trustee with third parties which are unrelated to the Manager; and (c) transactions (either individually or as part of a series or if aggregated with other transactions involving the same related party during the same financial year) equal to or exceeding 5.0% of the value of Ascott REIT’s latest audited consolidated NTA are reviewed and approved prior to such transactions being entered into, on the basis described in the preceding paragraph, by the Audit Committee which may, as it deems fit, request advice on the transaction from independent sources or advisors, including the obtaining of valuations from independent professional valuers. Further, under the Listing Manual and the Property Funds Appendix, such transactions would have to be approved by the Unitholders at a meeting of Unitholders. Where matters concerning Ascott REIT relate to transactions entered into or to be entered into by the Trustee for and on behalf of Ascott REITwith a related party of the Manager or Ascott REIT, the Trustee is required to consider the terms of such transactions to satisfy itself that such transactions are conducted on normal commercial terms, are not prejudicial to the interests of Ascott REIT or the Unitholders, and in accordance with all applicable requirements under the Property Funds Appendix and/or the Listing Manual relating to the transaction in question. Further, the Trustee has the ultimate discretion under the Trust Deed to decide whether or not to enter into a transaction involving a related party of the Manager or Ascott REIT. If the Trustee is to sign any contract with a related party of the Manager or Ascott REIT, the Trustee will review the contract to ensure that it complies with the requirements relating to interested party transactions in the Property Funds Appendix (as may be amended from time to time) and the provisions of the Listing Manual relating to interested person transactions (as may be amended from time to time) as well as such other guidelines as may from time to time be prescribed by the MAS and the SGX-ST to apply to real estate investment trusts. Save for the transactions described under “Related Party Transaction In Connection with the Setting Up of Ascott REIT” and “Other Related Party Transactions”, Ascott REITwill, in compliance with Rule 905 of the Listing Manual, announce any interested person transaction if such transaction, by itself or when aggregated with other interested person transactions entered into with the same interested person during the same financial year, is 3.0% or more of Ascott REIT’s latest audited NTA.

86 The aggregate value of all Related Party Transactionswhich are subject to Rules 905 and 906 of the Listing Manual in a particular financial year are disclosed in Ascott REIT’s annual report for the relevant financial year.

Role of the Audit Committee for Related Party Transactions All Related Party Transactions are reviewed by the Audit Committee and approved by a majority of the Audit Committee in accordance with the Manager’s internal control system and in compliance with the relevant provisions of the Listing Manual as well as the Property Funds Appendix. The review includes the examination of the nature of the transaction, its rationale and its supporting documents or such other data deemed necessary to the Audit Committee. If a member of the Audit Committee has an interest in a transaction, he or she is to abstain from participating in the review and approval process in relation to that transaction.

Related Party Transactions in connection with the setting up of Ascott REIT The Trustee, on behalf of Ascott REIT, has entered into a number of transactions with the Manager and certain related parties of the Manager in connection with the setting up of Ascott REIT. These Related Party Transactions are as follows: (a) The Trustee has entered into the Trust Deed with the Manager. (b) The Trustee entered into various share sale and purchase agreements for the acquisition of the shares in the property holding companies holding Ascott Jakarta, Somerset Grand Citra, Country Woods, Somerset Millennium, the Somerset Salcedo Property, Ascott Beijing, the Somerset Grand Fortune Garden Property, Somerset Xu Hui, Somerset Ho Chi Minh City and Somerset Grand Hanoi. In addition, the Trustee entered into the property sale and purchase agreements for the acquisition of the Somerset Liang Court Property and Somerset Grand Cairnhill (together with the properties mention above, the “Initial Properties”). The aggregate acquisition value of the Initial Properties was $662.5 million. Based on its experience, expertise and knowledge, the Manager believes that the share sale and purchase agreements and the property sale and purchase agreements reflect normal commercial terms and are not prejudicial to the interests of Ascott REIT and the Unitholders. (c) The Trustee and the Manager have entered into the serviced residence management agreements with the various serviced residence management companies for the operation, maintenance, management and marketing of Somerset Liang Court Property and Somerset Grand Cairnhill. The Manager considers that the various serviced residence management companies have the necessary expertise and resources to perform the serviced residence management, lease/licence management and marketing services for the Initial Properties. Based on its experience, expertise and knowledge of contracts, the Manager believes that the serviced residence management agreements were made on normal commercial terms and are not prejudicial to the interests of Ascott REIT and/or the Unitholders. Save as disclosed in this Offer Information Statement, the Trustee has not entered into any other material transactions with the Manager or any related party of the Manager in connection with the setting up of Ascott REIT.

Other Related Party Transactions In addition to the transactions which Ascott REIT had entered into with interested persons or interested parties as disclosed above (including the Target Acquisitions and the Divestment and the CapitaLand Group Placement as described in the sections titled “Information relating to the Transaction” and “Equity Fund Raising” of this Offer Information Statement), the Trustee and/or the Manager, as the case may be, have not entered into any ongoing Related Party Transactions which are material in the context of the Equity Fund Raising other than as described below. Save for the Master Leases and the SR Management Agreements as disclosed in the section titled “Information relating to the Transactions” in this Offer Information Statement and save as disclosed below, there are no other ongoing Related Party Transactions between Ascott REIT and TAL, as a Controlling Unitholder of Ascott REIT which are material in the context of the Equity Fund Raising.

87 For the purpose of this section and in line with the rules set out in Chapter 9 of the Listing Manual of the SGX-ST, a transaction which value is less than $100,000 is not considered material in the context of the Equity Fund Raising and is not taken into account for the purposes of aggregation in this section.

Provision of serviced residence management services and grant of licence by the various serviced residence management companies for the use of the “Ascott” and “Somerset” trademarks The Existing Portfolio is and will continue to be managed and operated by the existing serviced residence management companies, which are subsidiaries of TAL, under existing separate serviced residence management agreements. In consideration for the provision of various serviced residence management services in relation to the Existing Portfolio, the relevant property holding companies have agreed to pay to these service residence management companies a basic management fee of between 2.0% and 3.0% per annum of Gross Revenue generated by each property and an incentive management fee of up to 10.0% per annum of gross operating profit of each property. Pursuant to the terms of these serviced residence management agreements, the serviced residence management companies granted a sub-licence to the relevant property holding companies to use the “Ascott” and “Somerset” trademarks in the countries in which the respective properties are situated for the duration of the relevant serviced residence management agreements. In relation to Somerset Liang Court Property and Somerset Grand Cairnhill, and under separate serviced residence management agreements entered into between the Trustee, the Manager and AIM in respect of each of these properties, AIM has granted the Trustee, as owner, a right to use the “Somerset” trademarks for the duration of these agreements and solely for the purpose of operating these properties. The SR Management Agreement in relation to the Singapore Target Property will be novated to Ascott REIT upon completion of the Singapore Target Acquisition. The aggregate value of the fees paid by Ascott REIT for the serviced residence management services and the grant of licences for the use of the “Ascott” and “Somerset” trademarks provided by the property management companies for FY2007, FY2008 and FY2009 were approximately $12.3 million, $13.7 million, and $12.1 million respectively. The Manager believes that the provision of serviced residence management services and the grant of licences for the use of the “Ascott” and “Somerset” trademarks by the subsidiaries of TAL are on normal commercial terms, on arm’s length basis and are not prejudicial to the interests of Ascott REIT and/or its Unitholders.

Licence granted by AIM to Ascott REIT for the use of trademarks On 6 March 2006, and in consideration for the payment of a nominal sum of $1.00, AIM granted a non- exclusive licence to the Trustee, as trustee of Ascott REIT, for the use of “Ascott”, “Somerset” and other trademarks that AIM owns or has the right to license in connection with the operations of Ascott REIT for so long as the Manager remains the manager of Ascott REIT and/or TAL and/or its subsidiaries remains a holder of an aggregate of at least 20.0% of the outstanding Units. The licence became effective from 1 March 2006 and (a) may be terminated with the mutual consent of the parties or (b) will automatically terminate in the event the Manager ceases to be the manager of Ascott REIT and/or TAL and/or its subsidiaries ceases to hold an aggregate of at least 20.0% of the outstanding Units in Ascott REIT. The Manager believes that the licence granted by AIM to the Trustee as trustee of Ascott REIT, for the use of such trademarks is not prejudicial to the interests of Ascott REIT and/or its Unitholders.

Indemnity by TAHL to Ascott REIT in connection with the operation of the properties Pursuant to a deed of indemnity dated 20 January 2006, and supplemented on 26 March 2007, provided by TAHL, TAHL agreed to indemnify Ascott REITand/or any of the relevant property holding companies at all times from and against all claims, proceedings, judgments, damages, costs, losses, and expenses arising out of or in connection with (a) the provision of services in connection with the operation of the relevant properties such as laundry services, housekeeping services, food and beverages services and security services by such property holding companies, and (b) any wrongful dismissal of the employees of such property holding companies. The indemnity also extends to all claims arising from any injury (personal or otherwise) or death suffered by the employees of Ascott REIT and/or such property holding companies in connection with their employment. The Manager believes that the indemnity by TAHL is not prejudicial to the interests of Ascott REIT and/or its Unitholders.

88 Contracts of lease with related corporations of the Manager Under various contracts of lease between the relevant property holding companies (the “Lessors”) and related corporations of the Manager, namely, Ascott Property Management (Beijing) Co. Ltd, Ascott Serviced Residence (China) Fund Management Pte Ltd, Ascott Property Management (Shanghai) Co. Ltd and Somerset Salcedo Makati, Inc., the Lessors leased the office space at Ascott Beijing, Somerset Xu Hui and 71 Apartment Units at the Somerset Salcedo Makati, to these related corporations of the Manager respectively. The amount of rental income received from these related corporations of the Manager from the office space at Ascott Beijing, Somerset Xu Hui and the 71 Apartment Units at the Somerset Salcedo Makati for FY2007, FY2008 and FY2009 were approximately $1.9 million, $2.5 million, and $2.5 million respectively. The Manager believes that these contracts of lease with these related corporations of the Manager have been entered into on normal commercial terms, are on arm’s length basis and will not be prejudicial to the interests of Ascott REIT and/or its Unitholders. The lease of office space at Ascott Beijing to Ascott Property Management (Beijing) Co. Ltd will cease to be a Related Party Transaction upon completion of the Divestment.

Provision of digital cable services by a subsidiary of Temasek Holdings (Private) Ltd to Ascott REIT On 19 April 2010, the Trustee (for and on behalf of Ascott REIT) entered into an agreement with Starhub Cable Vision Ltd, a subsidiary of Temasek Holdings (Private) Ltd for the provision of digital cable services to Somerset Grand Cairnhill and Somerset Liang Court Property. The Manager believes that the provision of these services by Starhub Cable Vision Ltd to Ascott REIT is on normal commercial terms, is on arm’s length basis and is not be prejudicial to the interests of Ascott REIT and/or its Unitholders.

Yield protection income from TAHL On 5 November 2008, the Trustee (for and on behalf of Ascott REIT) entered into a sale and purchase agreement with TAHL and Somerset (Vietnam) Investments Pte Ltd for the acquisition of Somerset West Lake. Under the sale and purchase agreement, TAHL has agreed to provide yield protection to the Trustee for 70.0% of a shortfall, if any, of a minimum threshold EBITDA per annum for five years from the completion of the acquisition, which was in April 2009. The amount received from TAHL in relation to this yield protection for FY2009 was approximately $0.5 million. The Manager believes that the yield protection income in relation to Somerset West Lake provided by TAHL to Ascott REIT is on normal commercial terms, is on arm’s length basis and is not prejudicial to the interests of Ascott REIT and/or its Unitholders.

Exempted Agreements The Trust Deed and the agreements set out under “Other Related Party Transactions” (collectively, the “Exempted Agreements”), each of which would constitute an ongoing Related Party Transaction, are deemed to have been specifically approved by the Unitholders and new Investors upon subscription and are therefore not subject to Rules 905 and 906 of the Listing Manual to the extent that there is no subsequent change to the fees or rent (or the basis of determining the fees or rent) charged under each of these agreements, which will adversely affect Ascott REIT. The renewal of such agreements will be subject to Rules 905 and 906 of the Listing Manual.

Interested Party Transactions As a real estate investment trust, Ascott REIT is regulated by the Property Funds Appendix and the Listing Manual. The Property Funds Appendix regulate, among other things, transactions entered into by the Trustee (for and on behalf of Ascott REIT) with an interested party relating to Ascott REIT’s acquisition of assets from or sale of assets to an interested party, Ascott REIT’s investment in securities of or issued by an interested party and the engagement of an interested party as serviced residence management agent or marketing agent for Ascott REIT’s properties. Depending on the materiality of transactions entered into by Ascott REIT for the acquisition of assets from, the sale of assets to or the investment in securities of or issued by, an interested party, the Property Funds Appendix may require that an immediate announcement to the SGX-ST be made, and may also require that the approval of the Unitholders be obtained. The Listing Manual regulates all interested person transactions, including transactions already governed by the Property Funds Appendix. Depending on the materiality of the transaction, Ascott REIT may be required to make a public announcement of the transaction (Rule 905 of the Listing Manual), or to make a

89 public announcement of and to obtain Unitholders’ prior approval for the transaction (Rule 906 of the Listing Manual). The Trust Deed requires the Trustee and the Manager to comply with the provisions of the Listing Manual relating to interested person transactions as well as such other guidelines relating to interested person transactions as may be prescribed by the SGX-ST to apply to real state investment trusts. The Manager may at any time in the future seek a general annual mandate from the Unitholders pursuant to Rule 920(1) of the Listing Manual for recurrent transactions of a revenue or trading nature or those necessary for its day-to-day operations, including a general mandate in relation to leases and/or licence agreements to be entered into with interested persons, and all transactions conducted under such general mandate for the relevant financial year will not be subject to the requirements under Rules 905 and 906 of the Listing Manual. In seeking such a general annual mandate, the Trustee will appoint an independent financial adviser (without being required to consult the Manager) pursuant to Rule 920(1)(b)(v) of the Listing Manual to render an opinion as to whether the methods or procedures for determining the transaction prices of the transactions contemplated under the annual general mandate are sufficient to ensure that such transactions will be carried out on normal commercial terms and will not be prejudicial to the interests of Ascott REIT and/or its Unitholders. Both the Property Funds Appendix and the Listing Manual requirements would have to be complied with in respect of a proposed transaction which is prima facie governed by both sets of rules. Where matters concerning Ascott REITrelate to transactions entered or to be entered into by the Trustee for and on behalf of Ascott REIT with a related party (either an “interested party” under the Property Funds Appendix or an “interested person” under the Listing Manual) of the Manager or Ascott REIT, the Trustee is required to ensure that such transactions are conducted in accordance with applicable requirements under the Property Funds Appendix and/or the Listing Manual relating to the transaction in question. The Manager is not prohibited by either the Property Funds Appendix or the Listing Manual from contracting or entering into any financial, banking or any other type of transaction with the Trustee (when acting other than in its capacity as trustee of Ascott REIT) or from being interested in any such contract or transaction, provided that any such transaction shall not be prejudicial to the interests of Ascott REITand/or its Unitholders. The Manager shall not be liable to account to the Trustee or to the Unitholders for any profits or benefits or other commission made or derived from or in connection with any such transaction. The Trustee shall not be liable to account to the Manager or to the Unitholders for any profits or benefits or other commission made or derived from or in connection with any such transaction. Generally, under the Listing Manual, the Manager, its “connected persons” (as defined in the Listing Manual) and any director of the Manager are prohibited from voting, or being counted as part of a quorum for, any meeting to approve any matter in which it has a material interest.

90 PLAN OF DISTRIBUTION

Equity Fund Raising The Equity Fund Raising comprises 487,518,000 New Units (representing 44.0% of the total number of Units which will be in issue immediately after the Equity Fund Raising) including: (a) the Preferential Offering — a non-renounceable preferential offering of 67,858,000 Preferential Offering New Units at the Preferential Offering Issue Price on the basis of one New Unit for every 10 Existing Units held as at the Preferential Offering Books Closure Date, fractions of a Unit to be disregarded and taking into account the Rounding Mechanism, to Singapore Registered Unitholders; (b) the Private Placement — the placement of 419,660,000 Private Placement New Units at the Private Placement Issue Price to institutional and other investors. Under the Underwriting Agreement entered into between the Manager and the Joint Lead Managers, Bookrunners and Underwriters, the Equity Fund Raising, save for such number of New Units to be subscribed by the CapitaLand Group pursuant to the Undertaking, is underwritten by the Joint Lead Managers, Bookrunners and Underwriters at a price which will result in an accretion based on the projected DPU between the Enlarged Portfolio as compared to the Existing Portfolio for the financial year ending 31 December 2011 as set out in this Offer Information Statement and subject to the qualifications, assumptions and limitations set out herein. The Equity Fund Raising, save for such number of New Units to be subscribed for by the CapitaLand Group pursuant to the Undertaking, is underwritten by the Joint Lead Managers, Bookrunners and Underwriters. The table below sets out the total number of New Units that each Joint Lead Manager, Bookrunner and Underwriter has agreed to underwrite. Joint Lead Managers, Bookrunners and Underwriters Number of New Units Credit Suisse (Singapore) Limited 178,337,939 DBS Bank Ltd. 76,430,545 Total 254,768,484 The Private Placement New Units will be offered at the Private Placement Issue Price and the Preferential Offering New Units will be offered at the Preferential Offering Issue Price. The Joint Lead Managers, Bookrunners and Underwriters have agreed to severally (and not jointly) subscribe or procure subscribers for, the Private Placement New Units which are the subject of the Private Placement at the Private Placement Issue Price. The Manager has agreed in the Underwriting Agreement to indemnify the Joint Lead Managers, Bookrunners and Underwriters against certain liabilities. The Underwriting Agreement also provides that the obligations of the Joint Lead Managers, Bookrunners and Underwriters to subscribe for or procure the subscription of the New Units in the Equity Fund Raising, are subject to certain conditions contained in the Underwriting Agreement. The Underwriting Agreement may be terminated upon the occurrence of certain events, including a suspension, moratorium of commercial banking activities in Singapore, New York or London, any material adverse change, in national or international monetary, financial, political or economic conditions or currency exchange rates or foreign exchange controls in Singapore which will prejudice or have an adverse impact on the success of the Equity Fund Raising and those of a force majeure nature. Subscribers of the New Units may be required to pay brokerage (and if so required, such brokerage will be up to 1.0% of the Offering Price) and applicable stamp duties, taxes and other similar charges (if any) in accordance with the laws and practices of the country of subscription, in addition to the Preferential Offering Issue Price or the Private Placement Issue Price, as the case may be.

91 Undertaking To demonstrate their support for Ascott REIT and the Equity Fund Raising, TAL, which together with Somerset Capital Pte Ltd and the Manager, own an aggregate interest of approximately 47.74% in Ascott REIT as at the Latest Practicable Date, has provided the Undertaking, pursuant to which, among others: (a) in relation to the Preferential Offering, it will, and it will procure that each of Somerset Capital Pte Ltd and the Manager will, accept in full its provisional allotment of Preferential Offering New Units at the Preferential Offering Issue Price; and (b) in relation to the Private Placement, it will procure the CapitaLand Group to subscribe, at the Private Placement Issue Price, for such number of Private Placement New Units such that the total number of Private Placement New Units subscribed for by the CapitaLand Group will be the difference between the total number of New Units which the CapitaLand Group would require to maintain its pre-Preferential Offering unitholding, in percentage terms and the total number of Preferential Offering New Units under the Preferential Offering provisionally allotted and accepted by the CapitaLand Group.

Moratorium TAL, being a Controlling Unitholder of Ascott REIT, has undertaken to the Joint Lead Managers, Bookrunners and Underwriters that it will not, and will procure each of its subsidiaries, Somerset Capital Pte Ltd and the Manager, not to, without the prior written consent of the Joint Lead Managers, Bookrunners and Underwriters (such consent not to be unreasonably withheld or delayed), during the Moratorium Period: (a) offer, sell or contract to sell, grant any option to purchase or otherwise grant security over, create any encumbrance over or otherwise dispose of, or enter into any transaction (including a derivative transaction) which is designed to, or might reasonably be expected to, result in the sale or disposition (whether by actual sale or disposition due to cash settlement or otherwise) of any or all of its effective or direct interests in the Moratorium Units or any part thereof (or any securities convertible into or exchangeable for Moratorium Units or which carry rights to subscribe for or purchase Moratorium Units or part thereof); (b) deposit any Moratorium Units (or any securities convertible into or exchangeable for Moratorium Units or which carry rights to subscribe for or purchase Moratorium Units or part thereof) in which it has an effective or direct interest in any depository receipt facility; and/or (c) make any announcement with respect to any of the foregoing transactions, other than as required by applicable laws and regulations. The Lock-up Restrictions above do not apply to the transfer of its effective interest in the Moratorium Units to TAL or any of TAL’s wholly-owned subsidiaries provided that each such transferee has executed and delivered to the Joint Lead Managers, Bookrunners and Underwriters an undertaking to the reasonable satisfaction of the Joint Lead Managers, Bookrunners and Underwriters to the effect of the Lock-up Restrictions described above, to remain in effect for the remainder of the Moratorium Period.

Other Relationships Certain of the Joint Lead Managers, Bookrunners and Underwriters and their affiliates engage in transactions with, and perform services for Ascott REIT in the ordinary course of business and have engaged, and may in the future engage, in commercial banking and investment banking transactions with Ascott REIT, for which they have received, and may in the future receive, customary compensation. The Joint Lead Managers, Bookrunners and Underwriters and their affiliates may also subscribe for Private Placement New Units other than pursuant to their underwriting commitments.

Lock-up Arrangements Pursuant to the Underwriting Agreement (as amended), the Manager has undertaken to the Joint Lead Managers, Bookrunners and Underwriters that they will not (and will not cause Ascott REIT to), without the prior written consent of the Joint Lead Managers, Bookrunners and Underwriters (such consent not to be

92 unreasonably withheld or delayed), from 20 August 2010 until the date falling 180 days after the listing date of the Preferential Offering New Units, directly or indirectly: • offer, issue, sell, contract to issue or sell, grant any option to purchase, grant security over, encumber or otherwise dispose of, any Units (or any securities convertible into or exchangeable for Units or which carry rights to subscribe for or purchase Units or part thereof); • enter into a transaction (including a derivative transaction) with a similar economic effect to the foregoing; • deposit any Units (or any securities convertible into or exchangeable for Units or which carry rights to subscribe for or purchase Units) in any depository receipt facility; • enter into a transaction which is designed or which may reasonably be expected to result in any of the above; or • publicly announce any intention to do any of the above, other than the New Units to be offered under the Equity Fund Raising and the Units to be issued to the Manager in full or part payment of the Manager’s fees under the Trust Deed.

SGX-ST Listing Ascott REIT has received a letter of eligibility from the SGX-ST for the listing and quotation of the New Units on the Main Board of the SGX-ST. The SGX-STassumes no responsibility for the correctness of any statements or opinions made or reports contained in this Offer Information Statement. Admission to the Official List of the SGX-ST is not to be taken as an indication of the merits of the Offering, Ascott REIT, the Manager or the New Units. The Manager expects that the Private Placement New Units and the Preferential Offering New Units will commence trading on the SGX-ST on a “ready” basis on or about 22 September 2010 and 8 October 2010 respectively. Costs of the Equity Fund Raising If Ascott REIT proceeds with the Equity Fund Raising, the Manager estimates that Ascott REITwill have to bear the following estimated costs and expenses based on an illustrative issue price of $1.15 per New Unit: (a) the underwriting, management and selling commissions, incentive fees and financial advisory fees and related expenses payable to, the Joint Lead Managers, Bookrunners and Underwriters, amounting to up to $9.0 million; and (b) the professional and other fees and expenses of approximately $8.7 million expected to be incurred by Ascott REIT in connection with the Equity Fund Raising.

Selling Restrictions No action has been or will be taken in any jurisdiction that would permit a public offering of the New Units or the possession, circulation or distribution of this Offer Information Statement or any other offering or publicity material relating to Ascott REIT or the New Units in any country or jurisdiction (other than Singapore, where action for the purpose is required). Accordingly, the New Units may not be offered or sold, directly or indirectly, and neither this Offer Information Statement nor any other offering material,

93 circular, form of application or advertisement in connection with the New Units may be distributed or published, in or from any country or jurisdiction except under circumstances that will result in compliance with all applicable rules and regulations of any such country or jurisdiction. Applicants for New Units are recommended to consult their professional advisers if they are in any doubt as to the regulatory implications of subscribing for, purchasing, holding, disposing of or otherwise dealing in the New Units.

United States The New Units have not been and will not be registered under the US Securities Act and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act. The re-offer, re-sale, pledge and other transfer of New Units is subject to further restrictions. See the section titled “Transfer Restrictions” of this Offer Information Statement. Each subscriber of New Units will be deemed to have represented and agreed as follows (terms used in this paragraph that are defined in Regulation S are used herein as defined therein): • at the time of the offer of the New Units to it, the purchaser of New Units was not in the United States; • either the purchaser was outside the United States at the time the buy order for the New Units was originated or the transaction was executed in, on or through a physical trading floor of an established foreign securities exchange that is located outside the United States; • none of the purchaser, its affiliates or any person acting on its or their behalf has made or will make, and the purchase of New Units is not the result of, any directed selling efforts in the United States with respect to the New Units; • the transfer of the New Units is not part of a plan or scheme to evade the registration requirements of the US Securities Act; and • the purchaser is aware that the New Units have not been and will not be registered under the US Securities Act and are being offered outside the United States in reliance on Regulation S, and that the New Units may not be offered, sold, pledged or otherwise transferred except in an offshore transaction in accordance with Regulation S. Until 40 days after the commencement of the Equity Fund Raising, an offer or sale of the New Units within the United States by any dealer (whether or not participating in the Offering) may violate the registration requirements of the US Securities Act if such offer or sale is made other than in accordance with an available exemption from registration. Each Joint Lead Manager, Bookrunner and Underwriter has represented in the Underwriting Agreement that it has not offered or sold, and agrees that it will not offer or sell, any New Units constituting part of its allotment within the United States except in accordance with Rule 903 of Regulation S. Accordingly, each Lead Manager, Bookrunner and Underwriter has represented in the Underwriting Agreement that none or it, its affiliates and any persons acting on its or their behalf have engaged or will engage in any directed selling efforts with respect to the New Units. Each Lead Manager, Bookrunner and Underwriter has represented in the Underwriting Agreement that neither it nor any of its affiliates has entered or will enter into any contractual arrangement with any distributor (as that term is defined in Regulation S) with respect to the distribution or delivery of the New Units, except with its affiliates or with the prior written consent of the Manager.

Australia This document does not constitute a prospectus or other disclosure document under the Corporations Act 2001 (the “Australian Corporations Act”) and does not purport to include the information required of a disclosure document under the Australian Corporations Act. This document has not been lodged with the Australian Securities and Investments Commission (“ASIC”) and no steps have been taken to lodge it as such with ASIC. Any offer in Australia of the New Units under this document may only be made to persons who are “sophisticated investors” (within the meaning of section 708(8) of the Australian Corporations Act), to “professional investors” (within the meaning of section 708(11) of the Australian Corporations Act) or otherwise pursuant to one or more exemptions under section 708 of the Australian Corporations Act so that it is lawful to offer the New Units in Australia without disclosure to investors under Part 6D.2 of the Australian Corporations Act. Any offer of New Units for on-sale that is received in Australia within 12 months after their issue by Ascott REIT, or within 12 months after their sale by the Manager (or

94 the Joint Lead Managers, Bookrunners and Underwriters) under the Equity Fund Raising, as applicable, is likely to need prospectus disclosure to investors under Part 6D.2 of the Australian Corporations Act, unless such offer for on-sale in Australia is conducted in reliance on a prospectus disclosure exemption under section 708 of the Australian Corporations Act or otherwise. Any persons acquiring New Units should observe such Australian on-sale restrictions.

Dubai International Financial Centre This Offer Information Statement relates to an Exempt Offer in accordance with the Offered Securities Rules of the Dubai Financial Services Authority. This document is intended for distribution only to persons of a type specified in those rules. It must not be delivered to, or relied on by, any other person. The Dubai Financial Services Authority has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The Dubai Financial Services Authority has not approved this document nor taken steps to verify the information set out in it, and has no responsibility for it. The securities to which this document relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the New Units offered should conduct their own due diligence on the New Units. If you do not understand the contents of this document, you should consult an authorised financial adviser.

European Economic Area In relation to each Member State of the European Economic Area which has implemented the Offering Circular Directive (each, a “Relevant Member State”), with effect from and including the date on which the Offering Circular Directive is implemented in that Relevant Member State (the “Relevant Implementation Date”) each Joint Lead Manager, Bookrunner and Underwriter has represented in the Underwriting Agreement that it has not made and will not make an offer of New Units to the public in that Relevant Member State prior to the publication of a prospectus in relation to the New Units which has been approved by the competent authority in that Relevant Member State or, where appropriate, approved in another Relevant Member State and notified to the competent authority in that Relevant Member State, all in accordance with the Offering Circular Directive, except that it may, with effect from and including the Relevant Implementation Date, make an offer of New Units to the public in that Relevant Member State at any time: • to legal entities which are authorised or regulated to operate in the financial markets or, if not so authorised or regulated, whose corporate purpose is solely to invest in securities; • to any legal entity which has two or more of (a) an average of at least 250 employees during the last financial year; (b) a total balance sheet of more than e43,000,000 and (c) an annual net turnover of more than e50,000,000, as shown in its last annual or consolidated accounts; or • in any other circumstances which do not require the publication by or on behalf of Ascott REIT of a prospectus pursuant to Article 3 of the Offering Circular Directive. For the purposes of this provision, the expression an “offer of New Units to the public” in relation to any New Units in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the New Units to be offered so as to enable an investor to decide to purchase or subscribe the New Units, as the same may be varied in that Member State by any measure implementing the Offering Circular Directive in that Member State and the expression Offering Circular Directive means Directive 2003/71/EC and includes any relevant implementing measure in each Relevant Member State.

Hong Kong The New Units have not been offered or sold and will not be offered or sold in Hong Kong by means of any document other than to “professional investors” as defined in the Securities and Futures Ordinance, or in circumstances which do not result in the document being a “prospectus” as defined in the Companies Ordinance (Cap. 32) of the Laws of Hong Kong or which do not constitute an offer to the public within the meaning of that Ordinance. No person has issued or had in its possession for the purposes of issue, and will issue or have in its possession for the purposes of issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating to the New Units which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to the New Units which are or are intended to be

95 disposed of only to persons outside Hong Kong or only to “professional investors” within the meaning of the Securities and Futures Ordinance (Cap. 571) of the laws of Hong Kong and any rules made thereunder.

Japan The New Units have not been and will not be registered under the Financial Instruments and Exchange Law of Japan (the “FIEL”). Accordingly, no New Units have been, directly or indirectly, offered or sold and shall not be, directly or indirectly, offered or sold in Japan or to, or for the benefit of, any resident of Japan (which term as used herein means a person resident in Japan, including any corporation or other entity organised under the laws of Japan) to others for re-offering or re-sale, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan except pursuant to an exemption from the registration requirements of, and otherwise in compliance with, the FIEL and other relevant laws and regulations of Japan.

Malaysia No prospectus or other offering material or document in connection with the offer and sale of the New Units has been or will be registered with the Securities Commission of Malaysia pursuant to the Capital Markets and Services Act 2007 as the offer for purchase of, or invitation to purchase the New Units is meant to qualify as an “excluded offer or excluded invitation” within the meaning of Section 229 of the Capital Markets and Services Act 2007. Each Joint Lead Manager, Bookrunner and Underwriter has severally represented, warranted or agreed that the New Units will not be offered, sold, transferred or otherwise disposed, directly or indirectly, nor any document or other material in connection therewith distributed, in Malaysia, other than to persons falling within any one of the categories or person specified in Schedule 6 and/or Schedule 7 of the Capital Markets and Services Act 2007 who are also persons to whom any offer or invitation to purchase or sell would be an excluded offer or invitation within the meaning of Section 229 of the Capital Markets and Services Act 2007.

United Arab Emirates This Offer Information Statement and the information contained herein does not constitute, and is not intended to constitute, a public offer of securities in the United Arab Emirates (“UAE”) and accordingly should not be construed as such. The New Units are only being offered to a limited number of sophisticated investors in the UAE who are willing and able to conduct an independent investigation of the risks involved in an investment in such New Units, upon their specific request. The New Units have not been approved or licensed or registered with the UAE Central Bank or any other relevant licensing authorities or governmental agencies in the UAE and no transaction will be concluded in the UAE. This Offer Information Statement is for the use of the named addressee only and should not be given or shown to any other person (other than employees, agents or consultants in connection with the addressee’s consideration thereof).

United Kingdom Each Lead Manager, Bookrunner and Underwriter has represented in the Underwriting Agreement that (i) it has complied and will comply with all applicable provisions of the Financial Services and Markets Act 2000 (the “FSMA”) with respect to anything done by it in relation to the New Units in, from or otherwise involving the United Kingdom and (ii) it has only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) received by it in connection with the issue or sale of any New Units in circumstances in which Section 21(1) of the FSMA does not apply to Ascott REIT.

96 TRANSFER RESTRICTIONS Due to the following restrictions, investors are advised to consult their legal counsel prior to making any offer, resale, pledge or transfer of New Units offered and sold in reliance on Regulation S under the US Securities Act. The New Units are subject to restrictions on transfer as summarised below. By purchasing New Units, you will be deemed to have made the following acknowledgements and representations to, and agreements with, the Manager and each Joint Lead Manager, Bookrunner and Underwriter. You acknowledge that: • the New Units have not been and will not be registered under the US Securities Act and are being offered for resale in transactions that do not require registration under the US Securities Act; • unless so registered, the New Units may not be offered, sold or otherwise transferred except under an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act; and • You represent that you are not acting on behalf of the Manager and that you are outside the United States and purchasing New Units in an offshore transaction in accordance with Regulation S. You acknowledge that none of the Manager and the Joint Lead Managers, Bookrunners and Underwriters or any person representing the Manager or the Joint Lead Managers, Bookrunners and Underwriters has made any representation to you with respect to Ascott REIT, the Equity Fund Raising or the offering of the New Units, other than the information contained in this Offer Information Statement. You represent that you are relying only on this Offer Information Statement in making your investment decision with respect to the New Units. You agree that you have had access to such financial and other information concerning Ascott REITand the New Units as you have deemed necessary in connection with your decision to purchase New Units, including an opportunity to ask questions of and request information from the Manager. You acknowledge that the Manager and the Joint Lead Managers, Bookrunners and Underwriters and others will rely upon the truth and accuracy of the above acknowledgments, representations and agreements. You agree that if any of the acknowledgments, representations or agreements you are deemed to have made by your purchase of New Units is no longer accurate, you will promptly notify the Manager and the Joint Lead Managers, Bookrunners and Underwriters. If you are purchasing any New Units as a fiduciary or agent for one or more investor accounts, you represent that you have sole investment discretion with respect to each of those accounts and that you have full power to make the above acknowledgments, representations and agreements on behalf of each account.

97 Directors of Ascott Residence Trust Management Limited (as manager of Ascott Residence Trust) Dated 13 September 2010

Mr Lim Jit Poh Mr Liew Mun Leong(1)

Mr Chong Kee Hiong Mr Ku Moon Lun

Mr Chandra Das S/O Rajagopal Sitaram(2) Mr Giam Chin Toon @ Jeremy Giam

Mr Lim Ming Yan Ms Jennie Chua

Mr Wen Khai Meng

(1) Signed by Mr Lim Jit Poh for and on behalf of Mr Liew Mun Leong pursuant to a Power of Attorney dated 3 September 2010.

(2) Signed by Mr Lim Jit Poh for and on behalf of Mr Chandra Das S/O Rajagopal Sitaram pursuant to a Power of Attorney dated 3 September 2010.

98 APPENDIX A

INFORMATION ON THE ENLARGED PORTFOLIO SUMMARY OF SELECTED INFORMATION ABOUT THE TARGET PROPERTIES AND EXISTING PORTFOLIO The composition of the Enlarged Portfolio upon completion of the Transactions is as follows:

Net Effective Number of Lettable Appraised Year of Interest Held Apartment Area Value Completion by Ascott REIT Property Name Address Units (sq m) ($ million) of Building Title in the Property Australia (2 properties) 1) Somerset Gordon 19 – 25 Little 43 1,691 13.1 1998 Freehold estate 100.0% Heights, Bourke Street, Melbourne(1) Melbourne, Victoria 3000, Australia 2) Somerset 185 St Georges 84 4,000 28.5 1999 Freehold estate 100.0% St Georges Terrace, Terrace, Perth Perth(1) WA 6000, Australia China (3 properties) 3) Somerset Grand 46 Liangmaqiao 81 11,279 46.9 2001 Leasehold estate of 100.0% Fortune Garden Road, 70 years expiring Property, Chaoyang District, on 27 August 2068 Beijing(1) Beijing 100125, China 4) Somerset Xu Hui, 888, Shaanxi Nan 167 17,805 53.4 1999 Leasehold estate of 100.0% Shanghai(1) Road, 70 years expiring Xu Hui District, on 22 June 2066 Shanghai 200031, China 5) Somerset Olympic 126 Chengdu Dao, 185 25,043(3) 79.1 1998 Leasehold estate of 100.0% Tower Property, Heping District, 70 years expiring Tianjin(1) Tianjin 300051, on 19 November China 2062(4) Indonesia (3 properties) 6) Ascott Jakarta(1) 2, Jalan Kebon 198 21,371 37.7 1994 Leasehold estate of 99.0% Kacang Raya, 26 years expiring Jakarta 10230, on 31 March 2024 Indonesia 7) Somerset Grand Jalan Prof Dr Satrio 203 29,666 40.4 1996 Leasehold estate of 57.4% Citra, Jakarta(1) Kav. 1, (includes 30 years expiring Jakarta 12940, 40 rental on 14 August 2024 Indonesia housing units) 8) Country Woods, Jalan WR 251 48,490 21.2 1997 Leasehold estate of 100.0% Jakarta(1),(8) Supratman, Pondok (includes 20 years expiring Ranji, Ciputat townhouses on 22 October 2025 Tangerang, (South and Jakarta), 15412 bungalows) Indonesia Japan (20 properties) 9) Somerset Azabu 1 – 9 – 11, Higashi 79 4,019 66.5 2003 Freehold estate 100.0% East, Azabu, Minato-ku, Tokyo(1) Tokyo, 106 – 0044 Japan 10) Somerset Roppongi, 3–4–31, 64 3,542 49.6 1999 Freehold estate 100.0% Tokyo(1) Roppongi, Minato-ku, Tokyo 106 – 0032, Japan 11) Asyl Court Nakano 1 – 14 – 12 Honcho 62 1,522 20.8 2006 Freehold estate 100.0% Sakaue, Nakano-ku, Tokyo, Tokyo(1) Japan

A-1 Net Effective Number of Lettable Appraised Year of Interest Held Apartment Area Value Completion by Ascott REIT Property Name Address Units (sq m) ($ million) of Building Title in the Property 12) Gala 2–1–18 76 1,949 21.6 2006 Freehold estate 100.0% Hachimanyama I, Kamitakaido, Tokyo(1) Suginami-ku, Tokyo, Japan 13) Gala 2–1–2 16 363 4.0 2006 Freehold estate 100.0% Hachimanyama II, Kamitakaido, Tokyo(1) Suginami-ku, Tokyo, Japan 14) Joy City Koishikawa 3 – 35 – 18 Otsuka, 36 1,012 12.4 2006 Freehold estate 100.0% Shokubutsuen, Bunkyo-ku, Tokyo, Tokyo(1) Japan 15) Joy City Kuramae, 2 – 24 – 1 Kuramae, 60 1,705 21.0 2006 Freehold estate 100.0% Tokyo(1) Taito-ku, Tokyo, Japan 16) Zesty Akebonobashi, 1 – 17 Tomihisacho, 12 328 5.5 2006 Freehold estate 100.0% Tokyo(1) Shinjuku-ku, Tokyo, Japan 17) Zesty Gotokuji, 6–42–5 15 356 4.8 2006 Freehold estate 100.0% Tokyo(1) Matsubara, Setagaya-ku, Tokyo, Japan 18) Zesty Higashi 6–15–20 19 459 7.8 2006 Freehold estate 100.0% Shinjuku, Shinjuku, Shinjuku- Tokyo(1) ku, Tokyo, Japan 19) Zesty Kagurazaka I, 2–13 20 464 7.4 2004 Freehold estate 100.0% Tokyo(1) Nishigokencho, Shinjuku-ku, Tokyo, Japan 20) Zesty Kagurazaka II, 123 – 3 Yaraicho, 20 442 6.9 2006 Freehold estate 100.0% Tokyo(1) Shinjuku-ku, Tokyo, Japan 21) Zesty Kasugacho, 6–4–15 32 787 7.9 2006 Freehold estate 100.0% Tokyo(1) Kasugacho, Nerima-ku, Tokyo, Japan 22) Zesty Koishikawa, 5–41–7 15 323 3.9 2006 Freehold estate 100.0% Tokyo(1) Koishikawa, Bunkyo-ku, Tokyo, Japan 23) Zesty Komazawa 2–12–21 29 947 12.6 2006 Freehold estate 100.0% Daigaku II, Higashigaoka, Tokyo(1) Meguro-ku, Tokyo, Japan 24) Zesty Nishi 3–18–15 29 803 13.3 2006 Freehold estate 100.0% Shinjuku III, Nishishinjuku, Tokyo(1) Shinjuku-ku, Tokyo, Japan 25) Zesty Sakura 3–11–3 17 554 7.0 2006 Freehold estate 100.0% Shinmachi, Tsurumaki, Tokyo(1) Setagaya-ku, Tokyo, Japan 26) Zesty Shin Ekoda, 1–2–2 18 467 4.5 2006 Freehold estate 100.0% Tokyo(1) Toyotamakami, Nerima-ku, Tokyo, Japan 27) Zesty Shoin Jinja, 4 – 3 – 3 Setagaya, 16 424 5.3 2005 Freehold estate 100.0% Tokyo(1) Setagaya-ku, Tokyo, Japan 28) Zesty Shoin Jinja II, 4 – 5 – 4 Setagaya, 17 519 6.8 2006 Freehold estate 100.0% Tokyo(1) Setagaya-ku, Tokyo, Japan

A-2 Net Effective Number of Lettable Appraised Year of Interest Held Apartment Area Value Completion by Ascott REIT Property Name Address Units (sq m) ($ million) of Building Title in the Property The Philippines (3 properties) 29) Ascott Makati(1) Glorietta 4, Ayala 306 34,282 99.3 1999 Contract of Lease 100.0% Center, Makati City of 48 years expiring 1224, Philippines on 6 January 2044, with an option to renew for another 25 years upon the mutual agreement of the parties 30) Somerset 104 Aguirre Street, 138 (of 4,448 14.5 2000 Freehold estate 100.0% Millennium, Legaspi Village, which 69 Makati(1) Makati City 1229, have been Philippines leased from unrelated third parties) 31) Somerset Salcedo HV Dela Costa 71 5,901 12.7 2000 Freehold estate 100.0% Property, Corner LP Leviste Makati(1) Street, Salcedo Village, Makati City, 1227, Philippines Singapore (3 properties) 32) Somerset Grand 15, Cairnhill Road, 146 20,048 238.0 1989 Leasehold estate of 100.0% Cairnhill, Singapore 229650 99 years expiring Singapore(1) on 10 June 2082 33) Somerset Liang 177B, River Valley 197 17,070 191.0 1983 Leasehold estate of 100.0% Court Property, Road, Singapore 97 years 30 days Singapore(1) 179032 expiring on 1 May 2077 34) * Citadines 8 Wilkie Road, 154 7,015 107.0 2008 Leasehold estate of 100.0% Singapore Mount #01-26 Wilkie Edge 96 years 3 months Sophia Property(2),(5) Singapore 228095 and 3 days expiring on 19 February 2105 Vietnam (5 properties) 35) Somerset Chancellor 21 – 23 Nguyen Thi 172 20,853 63.1 1995 Leasehold estate of 67.0% Court, Ho Chi Minh Minh Khai Street, 48 years expiring City(1) District 1, Ho Chi on 4 October 2041 Minh City, Vietnam 36) Somerset Grand 49 Hai Ba Trung 185 28,328 102.2 1997 Leasehold estate of 76.0% Hanoi(1) Street, Hanoi, 45 years expiring Vietnam on 8 February 2038 37) Somerset Ho Chi 8A Nguyen Binh 165 19,154 56.1 1998 Leasehold estate of 69.0% Minh City(1) Khiem Street, 45 years expiring District 1, Ho Chi on 25 December Minh City, Vietnam 2039 38) Somerset West 254D Thuy Khue 90 5,349 30.2 1994 Leasehold estate of 70.0% Lake, Hanoi(1) Road, Hanoi, 49 years expiring Vietnam on 30 September 2041 39) * Somerset Hoa 106 Hoang Quoc 206 14,330 54.9 2008 Leasehold estate of 90.0% Binh, Hanoi(2),(5) Viet Street, Hanoi, 36 years expiring Vietnam on 24 April 2042

Effective Number of Net Floor Appraised Interest Held Apartment Area Value Year of by Ascott REIT Property Name Address Units (sq m) ($ million) Completion Title in the Property * France (17 properties) 40) Citadines Lille Avenue Willy 101 3,863 16.2 1993 Freehold estate 100.0% Centre(2),(4) Brandt – Euralille, 59777 Lille France 41) Citadines 9 – 11 rue de 106 4,657 16.7 1993 Freehold estate 100.0% Grenoble(2),(4) Strasbourg, 38000 Grenoble, France

A-3 Effective Number of Net Floor Appraised Interest Held Apartment Area Value Year of by Ascott REIT Property Name Address Units (sq m) ($ million) Completion Title in the Property 42) Citadines Paris 8 rue de Richelieu, 51 3,373 40.3 Early Freehold estate 100.0% Louvre(2),(4),(7) 75001 Paris France 20th century 43) Citadines Paris 29 bis, rue Saint- 97 4,511 51.3 1988 Freehold estate 100.0% Trocadéro(2),(4) Didier, 75116 Paris France 44) Citadines Lyon 2 rue Thomassin, 116 5,973 21.4 1989 Freehold estate 100.0% Presqu’île(2),(4) 69002 Lyon France 45) Citadines Paris 18 place d’Italie, 169 7,090 56.3 1990 Freehold estate 100.0% Place d’Italie(2),(4) 75013 Paris France 46) Citadines Paris 16 avenue Rachel, 111 4,079 40.4 1995 Freehold estate 100.0% Montmartre (2),(4) 75018 Paris France 47) Citadines Paris Tour 132 boulevard de 104 5,380 59.2 1998 Freehold estate 100.0% Eiffel(2),(4) Grenelle, 75015 Paris France 48) Citadines Montpellier 588 boulevard 122 5,575 13.8 1990 Lessee under a 100.0% Antigone(2),(4) d’Antigone, 34000 finance lease Montpellier France arrangement(6) 49) Citadines Marseille 60 rue du Rouet 97 3,974 10.7 1987 Lessee under a 100.0% Castellane(2),(4) 13006 Marseille, finance lease France arrangement(6) 50) Citadines Paris 27 rue Esquirol, 49 1,827 9.6 1986 Lessee under a 100.0% Austerlitz(2),(4) 75013 Paris France finance lease arrangement(6) 51) Citadines Paris 75 bis, avenue 76 3,217 21.2 1994 Lessee under a 100.0% Voltaire Parmentier, 75011 finance lease République(2),(4) Paris France arrangement(6) 52) Citadines Paris 67 avenue du 67 2,123 20.6 1987 Lessee under a 100.0% Maine- Maine, 75014 Paris finance lease Montparnasse(2),(4) France arrangement(6) 53) Citadines Marseille 9 – 11 boulevard de 77 3,310 9.4 1992 Freehold estate 100.0% Prado Chanot(2),(4) Louvain, 13008 Marseille France 54) Citadines Paris Les 4 rue des 189 9,207 88.2 1984 Freehold estate 100.0% Halles(2),(4) Innocents, 75001 Paris France 55) Citadines Paris Didot 94 rue Didot, 75014 80 3,518 25.7 1993 Lessee under a 100.0% Alésia(2),(4) Paris France finance lease arrangement(6) 56) Citadines Cannes 1 rue le Poussin, 58 2,139 8.4 Part built in Lessee under a 100.0% Carnot(2),(4) 06400 Cannes 1937; other finance lease France in 1989 arrangement(6) * United Kingdom (4 properties) 57) Citadines London 7 – 21 Goswell 129 6,158 75.0 1990’s Freehold estate 100.0% Barbican(2),(5) Road, London EC 1M 7AH, United Kingdom 58) Citadines London 35A Gloucester 92 5,430 71.1 Early Freehold estate 100.0% South Road, London SW7 20th century Kensington(2),(5) 4PL United Kingdom 59) Citadines London 18 – 21 187 8,977 130.9 Early Freehold estate 100.0% Trafalgar Northumberland 20th century Square(2),(5) Avenue, London WC2N 5EA, United Kingdom 60) Citadines London 94 – 99 High 192 8,403 127.5 Early Freehold estate 100.0% Holborn-Covent Holborn, London 20th century Garden(2),(5) WC1V 6LF, United Kingdom * Belgium (2 properties) 61) Citadines Bruxelles 51 Quai au Bois à 169 7,536 26.7 2003 Freehold estate 100.0% Sainte- Brûler, 1000 Catherine(2),(5) Bruxelles Belgium

A-4 Effective Number of Net Floor Appraised Interest Held Apartment Area Value Year of by Ascott REIT Property Name Address Units (sq m) ($ million) Completion Title in the Property 62) Citadines Bruxelles 61-63 Avenue de la 153 8,662 23.5 2003 Freehold estate 100.0% Toison d’Or(2),(5) Toison d’Or, 1060 Bruxelles Belgium * Germany (2 properties) 63) Citadines Berlin Olivaer Platz 1, 118 5,480 21.1 2000 Freehold estate 100.0% Kurfu¨rstendamm(2),(4) 10707 Berlin- Wilmersdorf Germany 64) Citadines Munich Arnulfstrasse 51, 146 6,502 34.0 2009 Freehold estate 99.0% Arnulfpark(2),(4) 80636 Mu¨nchen Germany * Spain (1 property) 65) Citadines Barcelona Ramblas 122, 131 6,440 56.7 1980 Freehold estate 100.0%) Ramblas(2),(5) 08002 Barcelona Spain Total 6,681 2,654.8

Notes: (1) The Existing Portfolio’s valuations were conducted on 30 June 2010. (2) The appraised values of the TargetProperties refer to 100.0% of the TargetProperty and is the average of the two independent valuations by Savills UK and HVS undertaken as at 1 July 2010. (3) In respect of the serviced residence portion of Somerset Olympic Tower Property, Tianjin and exclude the commercial podium of 6,194 sq m under a 33-year master lease between Tianjin Sports Administration Bureau (as lessor) and Tianjin Cosco (as lessee) for the period from 1 July 2006 to 30 June 2039. (4) These properties are subject to Master Lease arrangements. (5) These properties are managed and operated pursuant to separate SR Management Agreements. (6) Of the Europe Target Properties, seven in France are owned and leased by Finance Companies, each under the Finance Lease Arrangement pursuant to each of which, the Finance Lessee has a contractual right to use the premises and a promise of sale at the expiry of the finance lease in consideration for the payment of rental by the Finance Lessee to the Finance Company. Under each of the Finance Lease Arrangement, the relevant Finance Lessee may acquire legal title to the Relevant France Target Property by exercising its option to purchase the property (a) prior to the expiry of the finance lease by, among others, providing six months’ notice to the Finance Companies and making pre-payment for the outstanding rentals due to the Finance Company (which as at 30 June 2010, amounts to an aggregate of $30.1 million), or (b) at the expiry of the finance lease by making a nominal payment of $1.00 to the Finance Company. Upon the exercise of the option by serving the six months’ notice, the legal title will, in accordance with the Finance Lease Arrangements, be delivered to the Finance Lessees by the end of that financial year or the next financial year (if the period between the date of notice to the year end is less than six months). As at the date of this Offer Information Statement, the relevant Finance Lessee does not intend to acquire the Relevant France Target Property upon the expiry of the said finance lease. (7) On 2 August 2010, TAL announced the conversion of Citadines Paris Louvre into Ascott Louvre Paris, the first Ascott-branded property in France, which is targeted to be completed in 2011. (8) As announced on 6 August, a sale and purchase agreement has been entered into for the sale of Country Woods, Jakarta for US$24.2 million, subject to satisfaction of conditions precedent. Completion for the sale of Country Woods is expected to take place in the fourth quarter of 2010. * Refer to Target Properties

A-5 The following sections set out descriptions and selected information in respect of the TargetProperties and the Existing Portfolio. Any discrepancies between the listed figures and totals thereof are due to rounding.

THE EXISTING PORTFOLIO Australia Somerset Gordon Heights, Melbourne, Australia Address 19 – 25 Little Bourke Street Melbourne Victoria 3000, Australia

Description Somerset Gordon Heights is located in Melbourne’s central business and financial district, surrounded by a myriad of theatres, excellent restaurants, cafes, sporting venues, galleries, department stores and glorious parks. Comprising 43 fully-furnished studios, one and two-bedroom apartments and two-bedroom penthouses, the property boasts facilities such as a restaurant, advanced security system, roof-top barbeque area with a gymnasium, sauna, spa and steam room, daily housekeeping service, free laundry facilities and valet dry cleaning.

Serviced Residence Management Company Ascott International Management (Australia) Pty Ltd (“AIM Australia”)

Somerset St Georges Terrace, Perth, Australia Address 185 St Georges Terrace Perth WA 6000, Australia

Description Somerset St Georges Terrace is located in the heart of Perth’s Business District. Its prime location is five- minute walk from the Perth Convention and Exhibition Centre and popular Hay Street and Murray Street pedestrian shopping malls, and 20-minute drive from the Perth domestic and international airports. The property comprises 84 fully-furnished apartment units housed in a nine-storey building with one basement level. The fully-furnished apartment units range from spacious studios to one-bedroom layouts. The property boasts facilities such as a restaurant, advanced security system, a gymnasium, daily housekeeping service, free laundry facilities and valet dry cleaning.

Serviced Residence Management Company AIM Australia

China Ascott Beijing, China Address 108B Jian Guo Road, Chaoyang District Beijing 100022 China

Description Ascott Beijing is located in the prime Chaoyang District of Beijing. The property is a 21-storey building with 310 apartment units ranging from one bedroom units to penthouses. The property offers facilities such as a fully equipped gymnasium, indoor heated swimming pool and business centre services.

A-6 Serviced Residence Management Company Ascott Property Management (Beijing) Co., Ltd (“AIM Beijing”)

Somerset Grand Fortune Garden Property, Beijing, China Address 46 Liangmaqiao Road, Chaoyang District Beijing 100125 China

Description The Somerset Grand Fortune Garden Property comprises a 23-storey apartment tower and a 26-storey apartment tower with an aggregate of 221 furnished apartment units located in the prime Chaoyang district, where the business community, embassies and international schools are within close proximity. Ascott REITowns 81 Apartment Units out of the 221 Apartment Units. The remaining 140 Apartment Units are owned by Beijing Xin Lian Xie Chuang Real Estate Development Co. Ltd. (“Beijing Xin Lian”), an unrelated party. Each of the apartment units is fully-furnished and ranges in size from one-bedroom to four-bedroom penthouse layouts. Apartment units in the property offer amenities which include a fully-equipped kitchen and home entertainment system, broadband internet access and IDD telephone with voice mail facility and washing machine and dryer. It also provides guests with recreational facilities which include children’s pool and playground, fully-equipped gymnasium and aerobics room, indoor swimming pool, sauna, residents’ lounge and billiards room.

Serviced Residence Management Company AIM Beijing

Somerset Xu Hui, Shanghai, China Address 888, Shaanxi Nan Road Xu Hui District, Shanghai 200031 China

Description Conveniently located in a prime residential district of Shanghai, Somerset Xu Hui is within a 15-minute walk from the business area of Huai Hai Zhong Road and the Shaanxi Nan Road metro station. The Pudong Business and Financial district is also easily accessible with a short drive. Each of the 167 apartment units is fully-furnished and ranges in size from one to three-bedroom layouts. Apartment units in Somerset Xu Hui offer amenities which include a fully equipped kitchen and home entertainment system, broadband internet access, IDD and DID with voice mail facility. The Property also provides guests with recreational facilities which include a billiards room, children’s playground, gymnasium and aerobics centre, function room, games room, indoor heated swimming pool, jacuzzi, steam and sauna rooms and reading room. It also provides daily breakfast and maid services, 24-hour security and CCTV surveillance, 24-hour reception, self-service launderette, a minimart/supermarket, baby-sitting service, basement car park and airport transfer.

Serviced Residence Management Company Ascott Property Management (Shanghai) Co., Ltd (“AIM Shanghai”)

Somerset Olympic Tower Property, Tianjin, China Address 126, Chengdu Dao Heping District, Tianjin 300051 China

A-7 Description Located on Chengdu Road in the Heping District, the Somerset Olympic Tower Property is a short walk away from Tianjin’s Central Business District. The property is also near the Tianjin Railway Station, with convenient access to and from other cities like Beijing. It is a 30-storey mixed development property with 185 serviced residence units comprising one, two and three bedroom layouts, and a three-storey retail podium. With facilities like a gymnasium, residents’ lounge, indoor swimming pool and children’s playroom, the property has achieved status as a premium serviced residence in Tianjin.

Serviced Residence Management Company AIM Shanghai Indonesia Ascott Jakarta, Indonesia Address 2, Jalan Kebon Kacang Raya Jakarta 10230 Indonesia

Description Ascott Jakarta comprises a 24-storey tower that adjoins another tower on a two-level basement. It is located in the heart of the city’s business and shopping district, the Golden Triangle and is conveniently situated close to the Convention Centre, Plaza Indonesia shopping complex and various embassies. Ascott Jakarta comprises 198 fully-furnished apartment units ranging from studio to three-bedroom penthouse units. Guest room amenities include home entertainment system, IDD, DID telephone with voice mail facility, broadband internet access, fully-equipped kitchen and washing machine and dryer. Ascott Jakarta provides guests with recreational facilities which include a residents’ lounge, barbeque area, children’s playground, health club with gymnasium, sauna and aerobics studios, games room, snooker room, swimming pool and tennis court.

Serviced Residence Management Company PT Ascott International Management Indonesia (“PT Ascott International”)

Somerset Grand Citra, Jakarta, Indonesia Address Jalan Prof Dr Satrio Kav 1 Jakarta 12940, Indonesia

Description Somerset Grand Citra is located in the heart of the city’s business and shopping district, the Golden Triangle and is conveniently close to prominent shopping centres and embassies. Somerset Grand Citra comprises 163 fully-furnished apartment units in a 24-storey eastern tower and 40 rental housing units in the western tower, in one to five-bedroom penthouse layouts. Guest room amenities include broadband internet access, fully-equipped kitchen, home entertainment system, IDD telephone with voice mail facility, utility area and washing machine and dryer. Somerset Grand Citra provides guests with recreational facilities which include a residents’ lounge, spa, barbeque area, children’s playground, gymnasium and aerobics centre, outdoor swimming pool, games room, sauna, function room and tennis court.

Serviced Residence Management Company PT Ascott International

A-8 Country Woods, Jakarta, Indonesia(1) Address Jalan WR Supratman, Pondok Ranji, Ciputat Tangerang (South Jakarta) 15412, Indonesia

Description Country Woods is located in the heart of South Jakarta, close to expressways and offers guests easy access to international schools, medical facilities, recreational complexes, and other regions of the city. Country Woods comprises 36 townhouses, 78 bungalows and 137 apartment units which vary in size from 120 sq m to 400 sq m, with a choice of layouts including: – three and four-bedroom walk-up apartments; – one, two or three-bedroom serviced apartments; – two, three or four-bedroom bungalows; or – four or five-bedroom two-storey townhouses. Guest room amenities include cable television with the option of high speed internet access, DID with optional IDD line and broadband internet access. Country Woods provides guests with recreational facilities which include a multi-purpose function room, two squash courts, three tennis courts, badminton court, basketball court, children’s swimming pool, children’s playground, swimming pool and volleyball court, chipping and putting green, gymnasium, play field for cricket or soccer, library, sauna and spa facilities.

Serviced Residence Management Company PT Ascott International

Japan Somerset Azabu East, Tokyo, Japan Address 1 – 9 – 11, Higashi Azabu, Minato-ku Tokyo 106-0044, Japan

Description Somerset Azabu East is conveniently located in Minato-ku, in the central business district of Tokyo close to multinational companies, embassies, restaurants and the Roppongi Hills shopping mall. Three subway stations are in close proximity, providing guests with efficient access to the entire city. The property comprises 79 fully-furnished Apartment Units housed in a 14-storey building with a one-level basement and a rooftop terrace. The fully-furnished apartment units range from spacious studios to one- bedroom layouts and are self-contained with a fully-equipped kitchen, home entertainment system, broadband internet access and IDD telephone with a private number and voicemail. Somerset Azabu East, Tokyo provides recreational facilities which include a fitness centre, a residents’ lounge, rooftop barbeque terrace and an indoor swimming pool.

Serviced Residence Management Company Ascott International Management Japan Company Ltd (“AIM Japan”)

Note:

(1) As announced on 6 August 2010, a sale and purchase agreement has been entered into for the sale of Country Woods, Jakarta for US$24.2 million, subject to satisfaction of conditions precedent. Completion for the sale of Country Wood is expected to take place in the fourth quarter of 2010.

A-9 Somerset Roppongi, Tokyo, Japan Address 3 – 4 – 31, Roppongi, Minato-ku Tokyo 106-0032, Japan

Description Somerset Roppongi is located within Minato-ku, in the central business district of Tokyo, located within five minutes walk from the nearest subway station, providing efficient access to the entire city. The property’s 64 fully-furnished apartment units are housed in a 13-storey building with a basement. The fully-furnished Apartment Units range from spacious studios to two-bedroom layouts. Guest room amenities include a fully-equipped kitchen, home entertainment system, broadband internet access and IDD telephone cum fax machine with a private number. Somerset Roppongi provides recreational facilities which include a fitness centre and a residents’ lounge.

Serviced Residence Management Company AIM Japan

Asyl Court, Gala, Joy City and Zesty Rental Housing Properties in Tokyo Address The 18 rental housing properties are strategically located in eight wards in Tokyo, namely Shinjuku, Bunkyo, Meguro, Setagaya, Nakano, Suginami, Nerima and Taito Ku.

Description The properties comprise purpose-built studio and one-bedroom apartment units with broadband internet access, security access phones, air-conditioners, fully-fitted kitchens, built-in wardrobes and water heaters. All are within walking distance to the Tokyo subway, other public transportation, restaurants and supermarkets. The properties are managed under a mixture of four local rental housing brands, namely Asyl Court, Gala, Joy City and Zesty.

Serviced Residence Management Company AIM Japan

The Philippines Ascott Makati, Philippines Address Glorietta 4, Ayala Center, Makati City, 1224, Philippines

Description Located in Glorietta 4 Ayala Center in the heart of Makati City’s central business district, Ascott Makati is close to the headquarters of numerous multinational corporations and financial institutions. The 306-unit property comprises studios, one-bedroom to three-bedroom and penthouse apartments. It has full facilities such as fitness centre, gymnasium, swimming pool, business centre, meeting rooms, tennis courts and a restaurant. Guests also have direct access to entertainment facilities, shops and restaurants in the premier Ayala Center shopping mall, which is linked to the serviced residence towers.

Serviced Residence Management Company Scotts Philippines, Inc. (“Scotts Philippines”)

A-10 Somerset Millennium, Makati, Philippines Address 104, Aguirre Street, Legaspi Village Makati City 1229, Philippines

Description Somerset Millennium is conveniently located in the shopping and business district of Makati City, and is situated within walking distance to the Ayala MRT station. Somerset Millennium is easily accessible to guests via public transportation, taxis and buses. It also provides guests with a variety of dining and shopping options as there are a number of restaurants within a short walk or drive from this Property. Somerset Millennium comprises 138 fully-furnished apartment units ranging from studio to penthouse units. Guest room amenities include broadband internet access, a fully-equipped kitchen, home entertainment system and IDD telephone with voice mail facility. Somerset Millennium provides guests with recreational facilities which include fitness centre, a jacuzzi, outdoor swimming pool and residents’ lounge.

Serviced Residence Management Company Scotts Philippines

Somerset Salcedo Property, Makati, Philippines Address HV Dela Costa Corner LP, Leviste Street, Salcedo Village, Makati City 1227, Philippines

Description The Somerset Salcedo Property is conveniently located in the shopping and business district of Makati city and provides guests with easy accessibility as it is within walking distance to the Buendia MRT station. Guests have a variety of dining and shopping options as a number of restaurants are located nearby. There is also an international school within walking distance from the property where expatriate guests may send their children for schooling. The property comprises 150 fully-furnished apartment units ranging from studio to three-bedroom layouts. Guest room amenities include broadband internet access, a fully-equipped kitchen, home entertainment system, IDD telephone with voice mail facility and washing machine cum dryer. It provides guests with recreational facilities which include fitness centre, a jacuzzi, indoor heated swimming pool, sauna, residents’ lounge and children’s playroom.

Serviced Residence Management Company Scotts Philippines

Singapore Somerset Grand Cairnhill, Singapore Address 15, Cairnhill Road Singapore 229650

Description Somerset Grand Cairnhill is strategically located in Orchard Road, the main shopping and entertainment district of the city, and is within walking distance to the Somerset MRT station. It is a 32-storey building with a 24-storey tower of serviced residences above a 8-storey podium accommodating a mosque, car park and retail/entertainment/office.

A-11 Somerset Grand Cairnhill comprises 146 fully-furnished apartment units ranging from studio to three- bedroom layouts. Guest room amenities include broadband internet access, a fully-equipped kitchen, home entertainment system and IDD telephone with voice mail facility and washing machine cum dryer. The serviced residence provides guests with recreational facilities which include a swimming pool, fitness centre, sauna, jacuzzi, barbeque area, half basketball court, pool table, tennis court, squash court, children’s playground and a residents’ lounge.

Serviced Residence Management Company Ascott International Management (2001) Pte Ltd (“AIM”)

Somerset Liang Court Property, Singapore Address 177B, River Valley Road Singapore 179032

Description The Somerset Liang Court Property is conveniently located along River Valley Road and offers guests easy access to Orchard Road, the Central Business District and outlaying districts. It is adjoining the Liang Court Shopping Centre and is within walking distance to the Clark Quay MRT station. The property comprises 197 fully-furnished apartment units in one to four bedroom layouts. Guest room amenities include broadband internet access, a fully-equipped kitchen, home entertainment system and IDD telephone with voice mail facility, and washing machine cum dryer. The serviced residence provides guests with recreational facilities which include a swimming pool, fitness centre, sauna and steam room with jacuzzi and a residents’ lounge.

Serviced Residence Management Company AIM

Vietnam Somerset Grand Hanoi, Vietnam Address 49, Hai Ba Trung Street Hanoi, Vietnam

Description Somerset Grand Hanoi is conveniently located within the Central Business District of Hanoi on Hai Ba Trung Street. Somerset Grand Hanoi is easily accessible to guests via public transportation, taxis and buses. There is also a convention centre, child education centre and a shopping mall on the lower floors of the building. The 185 fully-furnished apartment units range from one to three-bedroom units. Guest room amenities in Somerset Grand Hanoi include television with satellite and cable channels, fully-equipped kitchen and IDD telephone with voice mail facility, broadband access and washing machine cum dryer. This property also provides guests with recreational facilities which include children’s playground, fully-equipped gymnasium, function room, games room, sauna, jacuzzi, snooker room, swimming pool with wading pool, table-tennis facility and tennis court.

Serviced Residence Management Company AIM

A-12 Somerset West Lake, Hanoi, Vietnam Address 254D Thuy Khue Road Hanoi, Vietnam

Description Providing a scenic view of the West Lake, Somerset West Lake, Hanoi has 90 serviced apartment units comprising studio, one-, two-, and three-bedrooms. Centrally located in Hanoi’s scenic West Lake area, this Property is within walking distance to the business district, Central Hanoi, international schools, and the shopping and entertainment districts. Somerset West Lake comprises 90 fully-furnished apartment units from studio to three bedroom layouts. Guest room amenities include broadband internet access, a fully-equipped kitchen, home entertainment system and IDD telephone with voice mail facility, and washing machine cum dryer. The serviced residence provides guests with recreational facilities which include a swimming pool and children’s pool, children’s playground and indoor playroom and a residents’ lounge.

Serviced Residence Management Company AIM

Somerset Chancellor Court, Ho Chi Minh City, Vietnam Address 21 – 23, Nguyen Thi Minh Khai Street District 1, Ho Chi Minh City, Vietnam

Description Somerset Chancellor Court is an 18-storey building with one basement level and 42 car park lots. Centrally located in District 1 in Ho Chi Minh City’s prime commercial, diplomatic and major shopping district, Somerset Chancellor Court is within walking distance of many businesses, consulates and shopping centres. The 172-unit Somerset Chancellor Court offers guests facilities such as a business centre, swimming pool and steam room, fully-equipped gymnasium, hair and beauty salon, 24-hour reception and security, and a residents’ lounge with a library.

Serviced Residence Management Company AIM

Somerset Ho Chi Minh City, Vietnam Address 8A Nguyen Binh Khiem Street, District 1 Ho Chi Minh City, Vietnam

Description Somerset Ho Chi Minh City comprises three 12-storey buildings. Strategically located in the business and shopping district (District 1) in Ho Chi Minh City, this Property is within walking distance to business destinations, consulates, shopping centres and the Botanic Gardens. Each of the 165 Apartment Units is fully-furnished and ranges from two to four-bedroom layouts. Guest room amenities include broadband access, television with satellite and cable channels, a fully-equipped kitchen and IDD telephone with voice mail facility and washing machine and dryer. Somerset Ho Chi Minh City provides guests with recreational facilities which include fully-equipped gymnasium, indoor and large outdoor children’s play areas, multi-purpose function room, outdoor jacuzzi, outdoor swimming pool, poolside restaurant, tennis court, table-tennis facility, billiards room, barbeque area and games room.

A-13 Serviced Residence Management Company AIM

THE TARGET PROPERTIES Singapore Citadines Singapore Mount Sophia Property Address 8 Wilkie Road #01-26 Wilkie Edge Singapore 228095

Description Strategically located close to the city, the Citadines Singapore Mount Sophia Property is part of Wilkie Edge, an integrated lifestyle development comprising offices, retail and food and beverage outlets. Business travelers can also enjoy easy access to the central business district which is a short drive away. Each of the 154 apartment units is fully furnished, ranging from studio to two bedroom apartment units. Guest room amenities include airconditioning with individual thermostat control, fully-equipped kitchen, home entertainment system, broadband internet access and IDD telephone with voicemail facilities. Recreational facilities include fitness corner and lounge. The property also provides guests with business centre and wireless internet connectivity zones.

SR Management Company AIM

Vietnam Somerset Hoa Binh, Hanoi, Vietnam Address 106 Hoang Quoc Viet Road Hanoi Vietnam

Description Somerset Hoa Binh offers guests optimum convenience as it is located within a mixed development of retail, residential and office towers with basement carpark. It is strategically close to business and financial districts as well as the flourishing Hoa Lac high technology development zone. The property is a short drive away from the key commercial and political district as well as the prime city centres of Hoan Kiem and Ba Dinh Districts which house a lot of multinational corporations, diplomatic and public offices, restaurants, shopping, entertainment and tourist attractions. Each of the 206 apartment units in Somerset Hoa Binh is fully furnished, ranging from studio to two bedroom apartment units. Guest room amenities include fully-equipped kitchen, home entertainment system, broadband internet access, water filtration system and IDD telephone with voicemail facilities. Recreational facilities include fully-equipped gymnasium, indoor swimming pool, jacuzzi, sauna and steam room, children’s playroom, rooftop garden and barbecue area, DVD library, cafe and lounge.

SR Management Company AIM

A-14 France Citadines Lille Centre, France Address Avenue Willy Brandt – Euralille 59777 Lille France

Description Citadines Lille Centre is conveniently situated near the Euralile business center and the TGV railway station, offering guests efficient access to numerous European capitals. It is also surrounded by numerous cafes, restaurants and a shopping centre. Comprising 101 fully-furnished studio and one-bedroom apartments as well meeting rooms, Citadines Lille Centre offers guests room amenities including fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. Rooms are equipped for the disabled. The property also provides guests with wireless internet connectivity zones and meeting rooms.

Master Lessee Citadines SA

Citadines Grenoble, France Address 9 – 11, rue de Strasbourg 38000 Grenoble France

Description The Citadines Grenoble is situated close to international congress centres Alpexpo and Europole. Comprising 107 fully-furnished studio and one-bedroom apartments as well as a private garden, Citadines Grenoble offers guests room amenities including fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. Rooms are equipped for the disabled. The property also provides guests with wireless internet connectivity zones.

Master Lessee Citadines SA

Citadines Paris Louvre, France Address 8, rue de Richelieu 75001 Paris France

Description Housed in a historical building dating back to the 1900s, Citadines Louvre is in close proximity to the prime business areas and the government offices of the Left Bank. Guests also enjoy the convenience of restaurants, shopping options and art galleries surrounding the property. The property comprises 51 fully furnished studio and one-bedroom apartments which are equipped for the disabled. Guests can enjoy room amenities including fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. The property also provides guests with a business corner, as well as wireless internet connectivity zones.

A-15 Master Lessee Citadines SA

Citadines Paris Trocadéro, France Address 29 bis, rue Saint-Didier 75116 Paris France

Description Citadines Trocadérois located in the residential area which is five minute walk from the Trocadéro opposite the Seine River and the Eiffel Tower. It is within walking distance from the Kléber International Conference Centre and guests are offered convenient access to famous museums as well as shopping options in the Champs-Elysées and avenue de la Grande Armée. Citadines Trocadéro offers guests 97 fully-furnished apartments as well as a cosy garden. Guest room amenities include fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. The rooms are equipped for the disabled and the property provides guests with a business corner and wireless internet connectivity zones.

Master Lessee Citadines SA

Citadines Lyon Presqu’île, France Address 2, rue Thomassin 69002 Lyon France

Description Located in the heart of Lyon, Citadines Presqu’île is five-minute walk away from the Saint-Jean district, classified by UNESCO as a World Heritage Site. Guests can enjoy a variety of shopping, dining and entertainment options in the vicinity. Comprising 116 fully-furnished studio and one-bedroom apartments, Citadines Presqu’île offers guests room amenities including fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. Rooms are equipped for the disabled. The property also provides guests with wireless internet connectivity zones and meeting rooms.

Master Lessee Citadines SA

Citadines Paris Place d’Italie, France Address 18, place d’Italie 75013 Paris France

Description Citadines Place d’Italie is strategically situated at the crossroads of Chinatown and Butte-aux-Cailles village. Chinatown offers guests easy access to variety of restaurants and supermarkets, while Butte-aux- Cailles village which is in an important economic area offers guests close proximity to the Ecole nationale des Arts and Métiers, Pitié-Salpêtrière hospital and the Latin Quarter.

A-16 Comprising 169 fully-furnished studio and one-bedroom apartments as well as meeting rooms, Citadines Place d’Italie offers guests room amenities which include fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. The rooms are equipped for the disabled and the property also provides guests with a business corner, wireless internet connectivity zones and meeting rooms.

Master Lessee Citadines SA

Citadines Paris Montmartre, France Address 16, avenue Rachel 75018 Paris France

Description Located in the residential street close to place Clichy, Citadines Montmartre is a few steps away from Montmartre, the typical Parisian district. The Moulin Rouge and the Europe and Trinité business areas are in close proximity. Citadines Montmarte comprises 113 fully furnished studio and one-bedroom apartments which are equipped for the disabled, as well as a roof-terrace with views of the Sacre-Caeur. The apartment units provide amenities including fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. It also provides guests with a business corner and wireless internet connectivity zones.

Master Lessee Citadines SA

Citadines Paris Tour Eiffel, France Address 132, boulevard de Grenelle 75015 Paris France

Description Citadines Tour Eiffel is located in the former village of Grenelle, close to UNESCO and surrounded by a myriad of shopping centres, dining areas, exhibition parks and a host of other attractions including the famous Eiffel Tower. Comprising 104 fully-furnished studio and one-bedroom apartments which are equipped for the disabled, Citadines Tour Eiffel offers guests room amenities which include fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. The property also provides guests with a business corner and wireless internet connectivity zones.

Master Lessee Citadines SA

Citadines Montpellier Antigone, France Address 588, boulevard d’Antigone 34000 Montpellier France

A-17 Description Citadines Antigone is conveniently located in the heart of Antigone and is surrounded by a myriad of shopping centre, an Olympic-size swimming pool, famous church, cinemas, restaurants and the botanical garden. Guests can also enjoy the beautiful beaches which is only a 10-minute drive away. Each of the 122 apartment units is fully-furnished and ranges from studio to two-bedroom layouts. Apartment units in Citadines Antigone offer amenities including fully-equipped kitchen, television with cable channels, broadband internet access, HiFi system and IDD telephone. The property also provides guests with a business corner and an outdoor garden.

Master Lessee Citadines SA

Citadines Marseille Castellane, France Address 60, rue du Rouet 13006 Marseille France

Description The Citadines Castellane sits in the heart of this Mediterranean capital, within close proximity to Parc Chanot which hosts among other things Marseille International Fair. It is also close to the Congress Centre and within walking distance to cafes, restaurants and cinemas. Each of the 97 apartment units is fully-furnished and ranges from studio to one-bedroom layouts. Apartment units in Citadines Castellane offer amenities including fully-equipped kitchen, television with cable channels and IDD telephone. Rooms are equipped for the disabled. The property also provides guests with wireless internet connectivity zones and broadband internet access.

Master Lessee Citadines SA

Citadines Paris Austerlitz, France Address 27, rue Esquirol 75013 Paris France

Description Citadines Austerlitz is located in a bustling, traditional French district, where a myriad of café terraces, museum and places of interest are within close proximity. Citadines Austerlitz offers 49 fully-furnished studio and one-bedroom apartments. The apartment units offer guests with room amenities including fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. The rooms are equipped for the disabled and the property also provides guests with wireless internet connectivity zones.

Master Lessee Citadines SA

A-18 Citadines Paris Voltaire République, France Address 75 bis, avenue Parmentier 75011 Paris France

Description Citadines Voltaire République is located halfway between place de la République and Père Lachaise in a lively and popular district. Comprising 76 fully-furnished studio and one-bedroom apartments, Citadines Voltaire République offers guests room amenities including fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. Rooms are equipped for the disabled. The property also provides guests with a business corner and wireless internet connectivity zones.

Master Lessee Citadines SA

Citadines Paris Maine-Montparnasse, France Address 67, avenue du Maine 75014 Paris France

Description Citadines Maine-Montparnasse is conveniently located right in the heart of Montparnasse, a five-minute walk from the station. Citadines Maine-Montparnasse offers 67 fully furnished apartments studio and one-bedroom apartments, a small patio as well as a meeting room. Apartment units in Citadines Paris Maine-Montparnasse offer amenities including fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. It also provides guests with wireless internet connectivity zones as well as meeting room.

Master Lessee Citadines SA

Citadines Marseille Prado Chanot, France Address 9-11, boulevard de Louvain 13008 Marseille France

Description Citadines Prado Chanot is conveniently located in The Prado — a residential and business area whose central avenue thrives with cinemas, restaurants, shops and daily markets. The property comprises 77 fully-furnished studio and one-bedroom apartments. Guest room amenities include fully-equipped kitchen, television with cable channels, HiFi system and IDD telephone. Rooms are equipped for the disabled. The property also provides guests with a business corner, wireless internet connectivity zones and broadband internet access.

Master Lessee Citadines SA

A-19 Citadines Cannes Carnot, France Address 1, rue le Poussin 06400 Cannes France

Description Citadines Carnot offers guests convenient access to a wide variety of cafes, restaurants, cinemas and boutiques. Comprising 58 fully-furnished studio and one-bedroom apartments as well as a terrace and a sun-deck, Citadines Carnot offers guests room amenities including fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. Rooms are equipped for the disabled. The property also provides guests with wireless internet connectivity zones.

Master Lessee Citadines SA

Citadines Paris Didot Alésia, France Address 94, rue Didot 75014 Paris France

Description Citadines Didot Alésia is located in an authentic Parisian area surrounded by shops, markets, theatres, cinemas and restaurants. Citadines Didot Alésia offers 80 fully-furnished studio and one-bedroom apartments which are equipped for the disabled, as well as a meeting room with lovely garden view. Guest room amenities include fully- equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. The property also provides guests with a business corner, meeting room as well as wireless internet connectivity zones.

Master Lessee Citadines SA

Citadines Paris Les Halles, France Address 4, rue des Innocents 75001 Paris France

Description Strategically located in the heart of the Forum des Halles, Citadines Les Halles is easily accessible to the business areas of the city and is in the middle of hundreds of trendy boutiques, cinemas, restaurants, theatres and jazz clubs. Citadines Les Halles offers 189 fully-furnished studio and one-bedroom apartments which are equipped for the disabled, as well as meeting rooms. Guest room amenities include fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. Guests can also enjoy the convenience of a business corner, meeting rooms as well as wireless internet connectivity zones.

A-20 Master Lessee Citadines SA

United Kingdom Citadines London Barbican, United Kingdom Address 7-21 Goswell Road London EC 1M 7AH United Kingdom

Description Citadines Barbican is strategically located just north of the financial and business district in London, surrounded by the extensive tourist attractions and within walking distance to cosmopolitan restaurants and traditional pubs. The property comprises 129 fully-furnished studio and one-bedroom apartments which are equipped for the disabled. Guest room amenities include fully-equipped kitchen, television with cable channels, broadband internet access and IDD telephone. The property also provides guests with a business corner and wireless internet connectivity zones.

SR Management Company Soderetour UK Ltd

Citadines London Trafalgar Square, United Kingdom Address 18-21 Northumberland Avenue London WC2N 5EA United Kingdom

Description Located just a few steps away from Nelson’s Column in Trafalgar Square, Citadines Trafalgar Square is close to government buildings and places of interests and offers guests a wide selection of shops and boutiques at Piccadilly Circus, Oxford Street, The Strand and Leicester Square nearby. Citadines Trafalgar Square offers 187 fully-furnished apartments which are equipped for the disabled. Guest room amenities include fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. The property also provides guests with a business corner and wireless internet connectivity zones.

SR Management Company Soderetour UK Ltd

Citadines London South Kensington, United Kingdom Address 35A Gloucester Road London SW7 4PL United Kingdom

Description Located in the heart of the most Victorian area in London, Citadines South Kensington is surrounded by magnificent buildings, chic gardens and stylish boutiques. The property is also only a few steps away from the famous Hyde Park and within walking distance from Victoria and Albert Museum and the National History Museum.

A-21 Citadines South Kensington comprises 92 fully-furnished studio and one-bedroom apartments. Guest room amenities include fully-equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. The rooms are equipped for the disabled and the property provides guests with wireless internet connectivity zones.

SR Management Company Soderetour UK Ltd

Citadines London Holborn-Covent Garden, United Kingdom Address 94-99 High Holborn London WC 1V 6LF United Kingdom

Description Located just a few minutes walk from Covent Garden and not far from the City’s business area, Citadines Holborn-Covent Garden is situated in Mid-town — London’s prime retailing and office district. The property is surrounded by traditional pubs, international restaurants, art galleries, churches, and market. Comprising 192 fully-furnished studio and one-bedroom apartments equipped for the disabled as well as conference rooms, Citadines London Holborn-Covent Garden offers amenities which include fully- equipped kitchen, television with cable channels, broadband internet access, IDD telephone and HiFi system. The property also provides guests with a business corner, wireless internet connectivity zones and meeting rooms.

SR Management Company Soderetour UK Ltd

Belgium Citadines Bruxelles Sainte-Catherine, Belgium Address 51, Quai au Bois à Brûler 1000 Bruxelles Belgium

Description The Citadines Sainte-Catherine, complete with indoor garden and fountain, is situated in the heart of the city and is surrounded by many cafes and restaurants. The property comprises 169 fully-furnished studio and one-bedroom apartments as well as a meeting room. Guest room amenities include fully-equipped kitchen, television with cable channels, HiFi system and IDD telephone. Rooms are equipped for the disabled. The property also provides guests with a business corner, wireless internet connectivity zones, meeting room and broadband internet access.

SR Management Company Citadines SA

Citadines Bruxelles Toison d’Or, Belgium Address 61-63, Avenue de la Toison d’Or 1060 Bruxelles Belgium

A-22 Description Citadines Toison d’Or is located near the Jardin d’Egmont and the Avenue Louise which provides guests easy access to world-class shops and numerous brasseries and restaurants. Comprising 153 fully-furnished studio to two-bedroom apartments, apartment units in Citadines Toison d’Or offer amenities including fully-equipped kitchen, television with cable channels, broadband internet access, HiFi system and IDD telephone. Rooms are equipped for the disabled. The property also provides guests with a business corner, wireless internet connectivity zones and large conference room and meeting room.

SR Management Company Citadines SA

Germany Citadines Berlin Kurfu¨ rstendamm, Germany Address Olivaer Platz 1 10707 Berlin-Wilmersdorf Germany

Description Citadines Kurfu¨rstendamm is located in the centre of Berlin close to Kurfu¨rstendamm, one of the city’s busiest avenues with many restaurants, boutiques, theatres and cinemas. The property comprises 118 fully-furnished studio and one-bedroom apartments. Guest room amenities include fully-equipped kitchen, television with cable channels, broadband internet access, HiFi system and IDD telephone. Rooms are equipped for the disabled. The property also provides guests with a business corner and wireless internet connectivity zones.

Master Lessee Citadines Betriebsgesellschaft mbH

Citadines Munich Arnulfpark, Germany Address Arnulfstrasse 51 80636 Mu¨nchen Germany

Description Citadines Arnulfpark is located in West Munich, Germany and 15 minutes walk away from Marienplatz, the epicentre, shopping hub of Munich and the Central Railway Station. It provides guests with easy access to the airport and major points of interest in the city. The property offers 146 apartment units. Apartment units offer amenities including individually controlled air-conditioning and heating, fully-equipped kitchen, home entertainment system, broadband internet access and IDD telephone. The property also provides guests with a business corner, wireless internet connectivity zones and meeting room.

Master Lessee Citadines Betriebsgesellschaft mbH

A-23 Spain Citadines Barcelona Ramblas, Spain Address Ramblas 122 08002 Barcelona Spain

Description Located on one of the most vibrant streets in the city and Barcelona’s main meeting place, Citadines Ramblas is within easy reach of both the historic old town and business areas. Citadines Ramblas features 131 studio and one bedroom apartment units offering amenities including fully-equipped kitchen, television with cable channels, broadband internet access and IDD telephone. The rooms are equipped for the disabled. The property also provides guests with a business corner and wireless internet connectivity zones.

SR Management Company Aparthotel Citadines SA

INFORMATION ON THE SR MANAGEMENT AGREEMENTS Property Holding SR Management Name of Target Property Company Company Term Citadines Singapore Mount Citadines AIM For 10 years from Sophia Property Singapore Mount 9 January 2009 to Sophia Pte Ltd 8 January 2019 (formerly known as Ascott Scotts Pte Ltd) Somerset Hoa Binh, Hanoi Somerset Hoa AIM For 10 years from Binh Joint Venture 1 June 2008 to Company Limited 31 May 2018 Citadines London Barbican FBM London Soderetour UK Ltd For 10 years from Limited 1 May 2010 to 30 April 2020 Citadines London Trafalgar FBM London Soderetour UK Ltd For 10 years from Square Limited 1 May 2010 to 30 April 2020 Citadines London South Citagrep Limited Soderetour UK Ltd For 10 years from Kensington 1 January 2006 to 31 December 2015 Citadines London Holborn- FBM London Soderetour UK Ltd For 10 years from Covent Garden Limited 1 May 2010 to 30 April 2020 Citadines Bruxelles Sainte- FBM Belgique Citadines SA For 10 years from Catherine SPRL 1 January 2007 to 31 December 2016 Citadines Bruxelles Toison Immobiliere Toisor Citadines SA For 10 years from d’Or 1 January 2006 to 31 December 2015 Citadines Barcelona Eurimeg Espana Aparthotel For 10 years from Ramblas S.A. Citadines SA 1 January 2006 to 31 December 2015

A-24 INFORMATION ON THE MASTER LEASES

Effective Date of Expiry pursuant to TAL’s Property Undertaking Name of Target Holding (where Property Company Master Lessee Term applicable) Step-up Mechanism

Citadines Lille Residence des 2 Citadines SA Nine years from 30 September 2018 The rent is indexed on a yearly basis in Centre Gares 1 October 2009 to accordance with the variation of the 30 September 2018 French Commercial rents index published by I.N.S.E.E. (indice des loyers commerciaux or ILC). The date of the first indexation is 1 January 2015. The parties agreed that should the increase of the ILC exceed that of the French Construction cost index published by the I.N.S.E.E. (indice du coût de la construction or ICC), the rent would be indexed following the ICC.

Citadines Grenoble Place de Metz Citadines SA Nine years from 30 September 2018 The rent is indexed on a yearly basis in 1 October 2009 to accordance with the variation of the 30 September 2018 French Commercial rents index published by I.N.S.E.E. (indice des loyers commerciaux or ILC). The date of the first indexation is 1 January 2015. The parties agreed that should the increase of the ILC exceed that of the French Construction cost index published by the I.N.S.E.E. (indice du coût de la construction or ICC), the rent would be indexed following the ICC.

Citadines Paris SCI Citadines Paris Citadines SA Nine years from 9 October 2017 From January 1, 2014, the rent is: Louvre Louvre 10 October 2008 to – revised once every three year; and 9 October 2017 – indexed on a yearly basis in accordance with the variation of the French Construction cost index published by the I.N.S.E.E (indice du coût de la construction or ICC). Date of the first indexation: 1 January 2014. The lease does not specify whether the adjustment resulting from the indexation may be increasing or decreasing but in any case the variation shall not exceed more than 4%.

Citadines Paris Reo St Didier Citadines SA Nine years from 30 September 2018 The rent is indexed on a yearly basis in Trocadéro 1 October 2009 to accordance with the variation of the 30 September 2018 French Commercial rents index published by the I.N.S.E.E (indice des loyers commerciaux or ILC). Date of the first indexation: 1 January 2015. The parties agreed that should the increase of the ILC exceed that of the French Construction cost index published by the I.N.S.E.E (indice du coût de la construction or ICC), the rent would be indexed following the ICC.

A-25 Effective Date of Expiry pursuant to TAL’s Property Undertaking Name of Target Holding (where Property Company Master Lessee Term applicable) Step-up Mechanism

Citadines Lyon SCI Résidence Lyon Citadines SA Nine years from 31 December 2017 The rent is to remain subject to the legal Presqu’île 1 January 2009 to annual revision, governed by the French 31 December 2017 Commercial code, based on the French Commercial rents index published by the I.N.S.E.E (indice des loyers commerciaux or ILC), provided that should the increase of the ILC exceed that of the French Construction cost index published by the I.N.S.E.E (indice du coût de la construction or ICC), the latter shall be applied. The date of indexation commences from the first anniversary of the effective date of the Master Lease.

Citadines Paris SCI Résidence Italie Citadines SA Nine years from 31 December 2017 The rent is to remain subject to the legal Place d’Italie 1 January 2009 to annual revision, governed by the French 31 December 2017 Commercial code, based on the French Commercial rents index published by the I.N.S.E.E (indice des loyers commerciaux or ILC), provided that should the increase of the ILC exceed that of the French Construction cost index published by the I.N.S.E.E (indice du coût de la construction or ICC), the latter shall be applied. The date of indexation commences from the first anniversary of the effective date of the Master Lease.

Citadines Paris SNC Rachel Citadines SA Nine years from 30 September 2018 The rent is indexed on a yearly basis in Montmartre 1 October 2009 to accordance with the variation of the 30 September 2018 French Commercial rents index published by the I.N.S.E.E (indice des loyers commerciaux or ILC). Date of the first indexation: 1 January 2015. The parties agreed that should the increase of the ILC exceed that of the French Construction cost index published by the I.N.S.E.E (indice du coût de la construction or ICC), the rent would be indexed following the ICC.

Citadines Paris Tour SCI Grenelle Citadines SA Nine years from 31 May 2018 The rent is to remain subject to the legal Eiffel 1 June 2009 to annual revision, governed by the French 31 May 2018 Commercial code, based on the French Commercial rents index published by the I.N.S.E.E (indice des loyers commerciaux or ILC), provided that should the increase of the ILC exceed that of the French Construction cost index published by the I.N.S.E.E (indice du coût de la construction or ICC), the latter shall be applied. The date of indexation commences from the first anniversary of the effective date of the Master Lease.

Citadines Montpellier SCI Montpellier Citadines SA 12 years from 2 December 2017 The rent is indexed on a yearly basis in Antigone(1) 3 December 1999 to accordance with the variation of the 2 December 2011 construction costs index published by the I.N.S.E.E (indice du coût de la construction). The date of indexation commences from the first anniversary of the effective date of the Master Lease.

A-26 Effective Date of Expiry pursuant to TAL’s Property Undertaking Name of Target Holding (where Property Company Master Lessee Term applicable) Step-up Mechanism

The lease specifies that the adjustment resulting from the indexation may be increasing or decreasing but in any case the variation shall not exceed more than 5%.

Citadines Marseille SCI Marseille Citadines SA 12 years from 24 March 2017 The rent is indexed on a yearly basis in Castellane(1) 25 March 1999 to accordance with the variation of the 24 March 2011 construction costs index published by the I.N.S.E.E (indice du coût de la construction). The date of indexation commences from the first anniversary of the effective date of the Master Lease. The lease specifies that the adjustment resulting from the indexation may be increasing or decreasing but in any case the variation shall not exceed more than 5%.

Citadines Paris SCI Austerlitz Citadines SA 12 years from 24 March 2017 The rent is indexed on a yearly basis in Austerlitz(1) 25 March 1999 to accordance with the variation of the 24 March 2011 construction costs index published by the I.N.S.E.E (indice du coût de la construction) The date of indexation commences from the first anniversary of the effective date of the Master Lease. The lease specifies that the adjustment resulting from the indexation may be increasing or decreasing but in any case the variation shall not exceed more than 5%.

Citadines Paris SCI République Citadines SA 12 years from 24 March 2017 The rent shall be subject to an annual Voltaire 25 March 1999 to indexation, on the anniversary date of the République(1) 24 March 2011 effective date of the Master Lease, based on the variation of the French Construction cost index published by the I.N.S.E.E. (indice du cout de la construction or ICC). However, the rent variation shall not exceed an increase or decrease by 5%.

Citadines Paris SCI Montparnasse Citadines SA 12 years from 24 March 2017 The rent shall be subject to an annual Maine- 25 March 1999 to indexation, on the anniversary date of the Montparnasse(1) 24 March 2011 effective date of the Master Lease, based on the variation of the French Construction cost index published by the I.N.S.E.E. (indice du cout de la construction or ICC). However, the rent variation shall not exceed an increase or decrease by 5%.

Citadines Marseille Oriville Citadines SA Nine years from 30 June 2018 The rent is to remain subject to the legal Prado Chanot 1 July 2009 to annual revision, governed by the French 30 June 2018 Commercial code, based on the French Commercial rents index published by the I.N.S.E.E (indice des loyers commerciaux or ILC), provided that should the increase of the ILC exceed that of the French Construction cost index published by the I.N.S.E.E (indice du coût de la construction or ICC), the latter shall be applied. The date of indexation commences from the first anniversary of the effective date of the Master Lease.

A-27 Effective Date of Expiry pursuant to TAL’s Property Undertaking Name of Target Holding (where Property Company Master Lessee Term applicable) Step-up Mechanism

Citadines Paris Les Oriville Citadines SA Nine years from 31 December 2017 The rent is to remain subject to the legal Halles 1 January 2009 to annual revision, governed by the French 31 December 2017 Commercial code, based on the French Commercial rents index published by the I.N.S.E.E (indice des loyers commerciaux or ILC), provided that should the increase of the ILC exceed that of the French Construction cost index published by the I.N.S.E.E (indice du coût de la construction or ICC), the latter shall be applied. The date of indexation commences from the first anniversary of the effective date of the Master Lease.

Citadines Paris Didot SCI Sodi (formerly Citadines SA Nine years from 4 August 2016 The rent shall be subject to an annual Alésia(1) known as SCI Didot) 5 August 2010 to indexation, on the anniversary date of the 4 August 2019 effective date of the Master Lease, based on the French commercial rents index published by the I.N.S.E.E (indice des loyers commerciaux or ILC), provided that should the increase of the ILC exceed that of the French construction cost index published by the I.N.S.E.E (indice du coût de la construction or ICC), the latter shall be applied.

Citadines Cannes SCI Cannes Carnot Citadines SA 12 years from 2 December 2017 The rent is indexed on a yearly basis in Carnot(1) 3 December 1999 to accordance with the variation of the 2 December 2011 construction costs index published by the I.N.S.E.E (indice du coût de la construction). The lease specifies that the adjustment resulting from the indexation may be increasing or decreasing but in any case the variation shall not exceed more than 5%. The date of indexation commences from the first anniversary of the effective date of the Master Lease.

Citadines Berlin Citador Olivaer Platz Citadines 20 years from 28 February 2022 The Master Lessee has the right to extend Kurfu¨rstendamm GmbH & Co KG Betriebsgesellschaft 1 March 2002 to the term of the lease twice by further five mbH 28 February 2022 years. Effective as of 1 March 2011, either party may request in writing negotiations (no automatic adjustment) for an adjustment of the rent provided that the consumer price index has changed by more than 10% since the lease commencement date, respectively since the last rent adjustment. No such demand may be made unless at least one year has lapsed since the last rent adjustment. Any rent adjustment is capped to an amount corresponding to 5% of the rent per annum.

A-28 Effective Date of Expiry pursuant to TAL’s Property Undertaking Name of Target Holding (where Property Company Master Lessee Term applicable) Step-up Mechanism

Citadines Munich Citadines Munich Citadines 20 years from 31 December 2029 The Master Lessee has the right to extend Arnulfpark Arnulfpark GmbH & Betriebsgesellschaft 1 January 2010 to the term of the lease twice by further five Co KG mbH 31 December 2029 years. Effective as of 1 January 2014 either party may request in writing negotiations (no automatic adjustment) for an adjustment of the rent provided that the consumer price index has changed by more than 10% since the lease commencement date, respectively since the last rent adjustment. No such demand may be made unless at least one year has lapsed since the last rent adjustment. Any rent adjustment is capped to an amount corresponding to 5% of the rent per annum.

Note: (1) TAL has provided the TAL Undertaking in favour of the Trustee to procure: (a) in respect of the Master Leases with an original term of nine years, namely the Master Leases in relation to Citadines Lille Centre, Citadines Grenoble, Citadines Paris Louvre, Citadines Paris Trocadéro, Citadines Lyon Presqu’île, Citadines Paris Place d’Italie, Citadines Paris Montmartre, Citadines Paris Tour Eiffel, Citadines Marseille Prado Chanot and Citadines Paris Les Halles, Citadines SA fulfills the full nine-year term of these Master Leases; and/or (b) in respect of other Master Leases with an original term of 12 years, namely the Master Leases in relation to Citadines Paris Austerlitz, Citadines Paris Didot Alésia, Citadines Maine Montparnasse, Citadines Paris Voltaire République, Citadines Marseille Castellane, Citadines Montpellier Antigone and Citadines Cannes Carnot, Citadines SA will renew such Master Leases (expiring in 2011) and waive its option to terminate at the end of the first three-year period of the renewed Master Leases.

A-29 This page has been intentionally left blank. APPENDIX B

TAX CONSIDERATIONS The following summary of certain Singapore income tax consequences of the purchase, ownership and disposition of Units is based upon tax laws, regulations, rulings and decisions now in effect, all of which are subject to change (possibly with retroactive effect) and announced 2010 Budget measures which are subject to enactment. The summary is not tax advice and does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a decision to purchase, own or dispose of Units and does not purport to apply to all categories of Unitholders, some of whom may be subject to special rules. Unitholders should consult their own tax advisers concerning the application of Singapore tax laws to their particular situations as well as any consequences of the purchase, ownership and disposition of Units arising under the laws of any other tax jurisdictions.

Singapore Income Tax Income derived from the Europe Target Properties and the Vietnam Target Property The rental income and other related income earned from the Europe Target Properties and the Vietnam Target Property (collectively the “Overseas Target Properties”) will be received in Singapore by the relevant Singapore subsidiaries in a combination of some of the following forms: (i) dividend income; (ii) interest income; and (iii) proceeds from repayment of shareholder’s loans. The dividend income received in Singapore by the relevant Singapore subsidiary in respect of the Vietnam Target Property (the “Foreign Dividend Income”) will be exempt from tax under Section 13(8) of the Income Tax Act provided that the relevant Singapore subsidiary is a tax resident of Singapore and the following conditions are met: (i) in the year the Foreign Dividend Income is received in Singapore, the headline corporate tax rate of the jurisdiction from which it is received is at least 15.0%; (ii) the Foreign Dividend Income has been subjected to tax in the jurisdiction from which it is received; and (iii) the Singapore Comptroller of Income Tax is satisfied that the tax exemption would be beneficial to the relevant Singapore subsidiary. The relevant Singapore subsidiaries in respect of the Overseas Target Properties have obtained the approval of the Ministry of Finance and the IRAS to exempt the following foreign-sourced income from Singapore income tax under Section 13(12) of the Income Tax Act: (i) dividend and interest income received in Singapore in respect of the France Target Properties; (ii) dividend and interest income received in Singapore in respect of the Germany Target Properties; (iii) dividend and interest income received in Singapore in respect of the Belgium Target Properties; (iv) dividend and interest income received in Singapore in respect of the UK Target Properties; (v) dividend and interest income received in Singapore in respect of the Spain Target Property; and (vi) interest income received in Singapore in respect of the Vietnam Target Property. This tax exemption is subject to stipulated conditions and will only apply to dividend and interest income received in Singapore on or before 31 March 2015. Unless the tax exemption is subsequently extended by the Singapore Government, any of such dividend or interest income received in Singapore after 31 March 2015 may be subject to Singapore income tax at the prevailing corporate rate of tax, currently 17.0%. Cash that cannot be repatriated in the form of dividends may be used to repay the principal amount of shareholder’s loans. The proceeds from the repayment of shareholder’s loans received in Singapore by the relevant Singapore subsidiaries are capital receipts and hence not subject to Singapore income tax.

B-1 Ascott REIT will in turn receive dividends, repayment of the principal amount of shareholder’s loans or a combination of both from the relevant Singapore subsidiaries. Provided these Singapore subsidiaries are residents of Singapore for income tax purposes, the dividends received by Ascott REITwill be one-tier (tax- exempt) dividends and hence exempt from Singapore income tax. The proceeds from repayment of shareholder’s loans received by Ascott REITare capital receipts and not subject to Singapore income tax.

Distributions to Unitholders Distributions made by Ascott REIT out of the income or cashflow generated from the Overseas Target Properties may comprise either or both of the following two components: (i) tax-exempt income component (“Tax-Exempt Income Distributions”); and (ii) capital component (“Capital Distributions”). Tax-Exempt Income Distributions refer to distributions made by Ascott REIT out of its tax-exempt income (which comprises mainly the one-tier (tax-exempt) dividends that it will receive from the relevant Singapore subsidiaries). Such distributions are exempt from Singapore income tax in the hands of Unitholders. No tax will be deducted at source on such distributions. For this purpose, the amount of Tax-Exempt Income Distributions that Ascott REIT can distribute for a distribution period will be to the extent of the amount of tax-exempt income that it has received and is entitled to receive in that distribution period. Any distribution made for a distribution period out of profits or income which Ascott REIT is entitled to receive as its own tax-exempt income after the end of that distribution period will be treated as a capital distribution and the tax treatment described in the next paragraph on “Capital Distributions” will apply. The amount of such tax-exempt income that is subsequently received may be used to frank tax-exempt income distributions for subsequent distribution periods. Capital Distributions refer, inter alia, to distributions made by Ascott REITout of proceeds received from the repayment of shareholder’s loans. Unitholders will not be subject to Singapore income tax on such distributions. These distributions are treated as returns of capital for Singapore income tax purposes and the amount of Capital Distributions will be applied to reduce the cost of Units held by Unitholders. Accordingly, the reduced cost base will be used for the purpose of calculating the amount of taxable trading gains for those Unitholders who hold Units as trading or business assets and are liable to Singapore income tax on gains arising from the disposal of Units. If the amount of Capital Distributions exceeds the cost or the reduced cost, as the case may be, of Units, the excess will be subject to tax as trading income of such Unitholders.

Income derived from the Singapore Target Property Subject to meeting the terms and conditions of the Tax Ruling, Ascott REIT will not be taxed on taxable income derived from the Singapore Target Property to the extent of the amount distributed to Unitholders. Instead, tax will be imposed on the distributions made out of such taxable income (“Taxable Income Distributions”) to Unitholders, by way of tax deduction at source or direct assessment of tax on Unitholders. Individuals and Qualifying Unitholders who have furnished the requisite declaration to the Trustee will receive their Taxable Income Distributions without deduction of tax. Tax will be deducted at source at the prevailing corporate tax rate, currently 17.0%, from such distributions made to all other Unitholders and to Qualifying Unitholders who do not furnish the requisite declaration. However, the rate of 17.0% is reduced to a concessionary rate of 10.0% for Taxable Income Distributions made by Ascott REIT to foreign non-individual Unitholders. Pursuant to the measures announced in Budget 2010, this concessionary tax rate which was to cease on 17 February 2010 will continue to apply until 31 March 2015. A foreign non-individual Unitholder is a person (other than an individual) who is not a resident of Singapore for income tax purposes and: (i) who does not have a permanent establishment in Singapore; or (ii) who carries on any operation in Singapore through a permanent establishment in Singapore, where the funds used by that person to acquire the Units are not obtained from that operation.

B-2 Foreign non-individual Unitholders who have furnished the requisite declaration to the Trustee will receive Taxable Income Distributions made by Ascott REITon or before 31 March 2015 net of tax deduction at the reduced rate of 10.0%. Individuals, irrespective of their nationality and tax residence status, are exempt from tax on the gross amount of the Taxable Income Distributions received from Ascott REIT. This tax exemption does not apply to individuals who derive such distributions through a partnership in Singapore or from the carrying on of a trade, business or profession. Such individuals are liable to tax on the gross amount of Taxable Income Distributions received at their own applicable income tax rates. Qualifying Unitholders and other non-individual Unitholders are liable to tax on the gross amount of Taxable Income Distributions received at their own applicable income tax rates. Any tax deducted at source (other than tax deducted at source at the reduced rate of 10.0%) is not a final tax and may be used to set-off the Singapore income tax liability of a Unitholder.

Gains on disposal of Units Singapore does not impose tax on capital gains. In the event that the gains arising from the disposal of Units are considered as trading gains, such gains will be subject to Singapore income tax. Such gains may be considered income in nature and subject to Singapore income tax if they arise from or are otherwise connected with the activities of a trade or business carried on in Singapore. Such gains may also be considered gains or profits of an income nature, even if they do not arise from an activity in the ordinary course of trade or business, or an ordinary incident of some other business activity, if Units were acquired with the intention or purpose of making a profit by sale and not with the intention to be held for long-term investment purposes. As the precise tax status of one holder will vary from another, Unitholders are advised to consult their own tax advisers on the Singapore tax consequences that may apply to their own circumstances.

B-3 This page has been intentionally left blank. APPENDIX C

UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION

A. INTRODUCTION

Ascott Residence Trust (“ART” or the “Trust”) is a Singapore-domiciled unit trust constituted pursuant to the trust deed dated 19 January 2006, as amended by the First Supplemental Deed dated 22 March 2007 and Second Supplemental Deed dated 9 September 2009 (collectively referred to as the “Trust Deed”) between Ascott Residence Trust Management Limited (the “Manager”) and DBS Trustee Limited (the “Trustee”). The Trust Deed is governed by the laws of the Republic of Singapore. The Trustee is under a duty to take into custody and hold the assets of the Trust held by it or through its subsidiaries (collectively the “Group”) in trust for the holders (“Unitholders”) of units in the Trust (the “Units”).

The principal activities of the Trust are those relating to investment in real estate and real estate related assets which are income-producing and which are used or predominantly used, as serviced residences or rental housing properties in the Pan-Asian region, with the primary objective of achieving an attractive level of return from rental income and for long-term capital growth.

The principal activities of the subsidiaries are those of investment holding of serviced residence properties.

The Trust proposes to undertake the following transactions (the “Transactions”):

(a) the acquisition by the Trust of:

(i) Citadines Singapore Mount Sophia Property from Citadines Singapore Mount Sophia Pte. Ltd., a Singapore-incorporated company and wholly-owned subsidiary of The Ascott Limited (“TAL”);

(ii) a 100.0 percent interest in Somerset Hoa Binh (S) Pte. Ltd., a Singapore incorporated company from The Ascott Holdings Limited, a wholly-owned subsidiary of TAL. Somerset Hoa Binh (S) Pte. Ltd. holds a 90.0 percent interest in Somerset Hoa Binh Joint Venture Company Limited, which in turn owns Somerset Hoa Binh, Hanoi;

(iii) a 100.0 percent interest in The Ascott (Europe) NV (“Ascott Netherlands”), a Netherlands incorporated entity from The Ascott (Europe) Pte Ltd (“Ascott Europe”), a wholly-owned subsidiary of TAL. Ascott Netherlands holds the following effective equity interest in 23 subsidiaries that owned certain serviced residence properties or interest in serviced residence properties:

C - 1

Effective equity interest held Property or interest in Subsidiary of Ascott by Ascott property held by the Netherlands Netherlands subsidiary % Résidence des Deux Gares 100.0 Citadines Lille Centre (“Résidence des 2 Gares”) Place de Metz-Grenoble 100.0 Citadines Grenoble (“Place de Metz”) S.C.I. Citadines Paris Louvre 100.0 Citadines Paris Louvre (“SCI Citadines Paris Louvre”) Reo Saint-Didier 100.0 Citadines Paris Trocadéro (“Reo St Didier”) Société Civile Immobilière 100.0 Citadines Lyon Presqu'île Résidence Lyon (“SCI Lyon”)

Société Civile Immobilière 100.0 Citadines Paris Place d’ltalie Résidence Italie (“SCI Residence Italie”) S.N.C. 14bis/16/18 Avenue Rachel 100.0 Citadines Paris Montmartre – 75018 Paris (“SNC Rachel”) Société Civile Immobilière 100.0 Citadines Paris Tour Eiffel Résidence Grenelle (“SCI Grenelle”) SCI Montpellier Antigone 100.0 Citadines Montpellier Antigone (“SCI Montpellier”)

S.C.I. Marseille (“SCI Marseille”) 100.0 Citadines Marseille Castellane

S.C.I. Austerlitz (“SCI Austerlitz”) 100.0 Citadines Paris Austerlitz

S.C.I. République (“SCI 100.0 Citadines Paris Voltaire République”) République S.C.I. Montparnasse (“SCI 100.0 Citadines Paris Maine- Montparnasse”) Montparnasse Oriville 100.0 Citadines Marseille Prado Chanot Citadines Paris Les Halles

S.C.I. Cannes Carnot (“SCI 100.0 Citadines Cannes Carnot Cannes”)

S.C.I. SODI (“SCI Sodi”) 100.0 Citadines Paris Didot Alésia

C - 2

Effective equity interest held Property or interest in Subsidiary of Ascott by Ascott property held by the Netherlands Netherlands subsidiary

FBM London Limited 100.0 Citadines London Barbican Citadines London Trafalgar Square FBM Belgique SPRL 100.0 Citadines Bruxelles Sainte- Catherine Citador Olivaer Platz GmbH & Co. 100.0 Citadines Berlin KG Kurfürstendamm Citadines Munich Arnulfpark 99.0 Citadines Munich Arnulfpark GmbH & Co. KG Immobilière Toisor 100.0 Citadines Bruxelles Toison d’Or

Citagrep Limited 100.0 Citadines London South Kensington

Eurimeg Espana, S.A. 100.0 Citadines Barcelona Ramblas

(iv) a 100.0 percent interest in Citadines Holborn Cl Limited, a Jersey incorporated company, which owns Citadines London Holborn-Covent Garden from Ascott (Jersey) Limited, which is a wholly-owned subsidiary of TAL.

The acquisitions as described above are collectively referred to as the “Target Acquisitions”, while the serviced residence properties to be acquired as described above are collectively referred to as the “Target Properties”.

(b) the divestment by the Trust of its 100.0 percent interest in Hemliner Pte Ltd, a Singapore incorporated company, which owns a 100.0 percent indirect interest in Ascott Beijing to Ascott Investments Pte. Ltd., a wholly-owned subsidiary of TAL (the “Divestment”).

(c) the proposed issue of 487,518,000 new Units at the issue price of $1.15 per Unit, net of issue costs of $17.7 million (the “Equity Fund Raising”) and proposed additional borrowings (the “Additional Borrowings”) in order to, inter alia, fund the Target Acquisitions and associated costs.

With effect from the completion of the Transactions, ART’s investment policy will be expanded to include investments in real estate and real-estate related assets which are income-producing and which are used or predominantly used as serviced residences or rental housing properties in any country in the world.

C - 3

B. BASES FOR PREPARATION OF UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION

The Unaudited Pro Forma Consolidated Financial Information set out in this report, expressed in Singapore dollars, is prepared for illustrative purposes only and based on certain assumptions after making certain adjustments and shows the Unaudited Pro Forma Consolidated Statement of Total Return and Unaudited Pro Forma Consolidated Cash Flow Statement of the Group for the financial year ended 31 December 2009 and the Unaudited Pro Forma Consolidated Balance Sheet of the Group as at 31 December 2009.

The Unaudited Pro Forma Consolidated Statement of Total Return and Unaudited Pro Forma Consolidated Cash Flow Statement for the financial year ended 31 December 2009 and Unaudited Pro Forma Consolidated Balance Sheet as at 31 December 2009 have been compiled based on:

(a) the audited consolidated financial statements (financial statements prepared in accordance with Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts”) of the Group for the financial year ended 31 December 2009;

(b) the audited financial statements of Citadines Singapore Mount Sophia Pte. Ltd. and Hemliner Pte Ltd for the financial year ended 31 December 2009;

(c) the restated financial statements (financial statements prepared in accordance with accounting principles generally accepted in Vietnam, restated to align to Singapore Financial Reporting Standards) of Somerset Hoa Binh Joint Venture Company Limited for the financial year ended 31 December 2009;

(d) the restated financial statements (financial statements prepared in accordance with accounting principles generally accepted in France, restated to align to Singapore Financial Reporting Standards) of Résidence des 2 Gares, Place de Metz, SCI Citadines Paris Louvre and Oriville for the financial year ended 31 December 2009;

(e) the restated financial statements (financial statements prepared in accordance with accounting principles generally accepted in Germany, restated to align to Singapore Financial Reporting Standards) of Citador Olivaer Platz GmbH & Co. KG and Citadines Munich Arnulfpark GmbH & Co. KG for the financial year ended 31 December 2009;

(f) the restated financial statements (financial statements prepared in accordance with accounting policies principles generally accepted in United Kingdom, restated to align to Singapore Financial Reporting Standards) of Citadines Holborn CI Limited and FBM London Limited for the financial year ended 31 December 2009;

(g) the restated financial statements (financial statements prepared in accordance with accounting policies principles generally accepted in Belgium, restated to align to Singapore Financial Reporting Standards) of FBM Belgique SPRL and Immobilière Toisor for the financial year ended 31 December 2009;

(h) the restated financial statements (financial statements prepared in accordance with accounting principles generally accepted in the People’s Republic of China (“PRC”), restated to align to Singapore Financial Reporting Standards) of Hemliner (Beijing) Real Estate Co., Ltd for the financial year ended 31 December 2009; and

C - 4

(i) the unaudited management financial information of Reo St Didier, SCI Lyon, SCI Residence Italie, SNC Rachel, SCI Grenelle, SCI Montpellier, SCI Marseille, SCI Austerlitz, SCI Republique, SCI Montparnasse, SCI Cannes, SCI Sodi, Citagrep Limited and Eurimeg Espana, S.A. for the financial year ended 31 December 2009.

The Unaudited Pro Forma Consolidated Statement of Total Return and Unaudited Pro Forma Consolidated Cash Flow Statement of the Group for the financial year ended 31 December 2009 reflect the total return and cash flows of the Group as if it had completed the Transactions on 1 January 2009, or on the same dates that each of the serviced residence properties were acquired by TAL and its subsidiaries, whichever is later, pursuant to the terms set out in the Offer Information Statement ("OIS").

The Unaudited Pro Forma Consolidated Balance Sheet of the Group as at 31 December 2009 reflects the financial position of the Group as if it had completed the Transactions on 31 December 2009, pursuant to the terms set out in the OIS.

The Unaudited Pro Forma Consolidated Financial Information has been prepared on the basis of the accounting policies of the Group as set out in Section F below. In addition, the Unaudited Pro Forma Consolidated Financial Information has been prepared based on the assumption that the Unit issue price under the Equity Fund Raising is $1.15 per Unit.

The objective of the Unaudited Pro Forma Consolidated Financial Information of the Group is to show what the total return, financial position and cash flows might have been had the Group completed the Transactions at earlier dates, as described above. However, the Unaudited Pro Forma Consolidated Financial Information of the Group is not necessarily indicative of the total return, financial position or cash flows that would have been attained had the Group actually completed the Transactions earlier. The Unaudited Pro Forma Consolidated Financial Information has been prepared for illustrative purpose only and, because of its nature, may not give a true picture of the Group’s actual total return, financial position or cash flows.

The auditors’ reports issued by KPMG LLP on the consolidated financial statements of the Group, Citadines Singapore Mount Sophia Pte. Ltd. and Hemliner Pte Ltd for the financial year ended 31 December 2009 did not contain any qualifications, modifications or disclaimers.

The audited financial statement of Somerset Hoa Binh Joint Venture Company Limited for the financial year ended 31 December 2009 were prepared in accordance with accounting principles generally accepted in Vietnam and audited by KPMG Hanoi in accordance with auditing standards generally accepted in Vietnam. The auditors’ reports on these financial statements were not subject to any qualification, modifications or disclaimers.

The audited financial statements of Résidence des 2 Gares, Place de Metz, SCI Citadines Paris Louvre and Oriville for the financial year ended 31 December 2009 were prepared in accordance with accounting principles generally accepted in France and audited by KPMG S.A. in accordance with auditing standards generally accepted in France. The auditors’ reports on these financial statements were not subject to any qualification, modifications or disclaimers.

The audited financial statements of Citador Olivaer Platz GmbH & Co. KG and Citadines Munich Arnulfpark GmbH & Co. KG for the financial year ended 31 December 2009 were prepared in accordance with accounting principles generally accepted in Germany and audited by KPMG AG in accordance with auditing standards generally accepted in Germany. The auditors’ reports on these financial statements were not subject to any qualification, modifications or disclaimers.

C - 5

The audited financial statements of Citadines Holborn Cl Limited and FBM London Limited for the financial year ended 31 December 2009 were prepared in accordance with accounting principles generally accepted in United Kingdom and audited by KPMG London in accordance with auditing standards generally accepted in United Kingdom. The auditors’ reports on these financial statements were not subject to any qualification, modifications or disclaimers.

The audited financial statements of FBM Belgique SPRL and Immobilière Toisor for the financial year ended 31 December 2009 were prepared in accordance with accounting principles generally accepted in Belgium and audited by KPMG Réviseurs d’Entreprises in accordance with auditing standards generally accepted in Belgium. The auditors’ reports on these financial statements were not subject to any qualification, modifications or disclaimers.

The audited financial statement of Hemliner (Beijing) Real Estate Co., Ltd for the financial year ended 31 December 2009 were prepared in accordance with accounting principles generally accepted in the PRC and audited by KPMG Beijing in accordance with auditing standards generally accepted in the PRC. The auditors’ reports on these financial statements were not subject to any qualification, modifications or disclaimers.

No audited financial statements have been prepared for Reo St Didier, SCI Lyon, SCI Residence Italie, SNC Rachel, SCI Grenelle, SCI Montpellier, SCI Marseille, SCI Austerlitz, SCI Republique, SCI Montparnasse, SCI Cannes, SCI Sodi, Citagrep Limited and Eurimeg Espana, S.A. as they are not subject to statutory audit requirements under the relevant rules and regulations in their jurisdictions of incorporation.

C - 6

(I) Unaudited Pro Forma Consolidated Statement of Total Return

The Unaudited Pro Forma Consolidated Statement of Total Return for the financial year ended 31 December 2009 has been prepared assuming the Group had completed the Transactions on 1 January 2009 or on such dates that each of the properties were acquired by TAL and its subsidiaries, whichever is later.

In arriving at the Unaudited Pro Forma Consolidated Statement of Total Return for the financial year ended 31 December 2009, the following key adjustments were made:

• Adjustment to reflect the property income and expenses, finance costs and Trustee’s fees and Manager’s fees arising from the Target Acquisitions and Additional Borrowings;

• Adjustments to reflect the net change in fair value of the Target Properties pertaining to the Target Acquisitions based on the historical valuations as at 1 January 2009 and 31 December 2009;

• Adjustment to reverse property income and expenses, finance costs, Trustee’s fees, Manager’s fee and net change in fair value of Ascott Beijing and cross currency swap and to reflect Manager’s divestment fees and gain on disposal of subsidiaries arising from the Divestment; and

• Adjustments to reflect withholding tax expenses arising from the Divestment.

In addition, the following key assumptions were made:

• The Target Acquisitions at a net purchase consideration of $915.3 million were funded with the following:

o net proceeds arising from the Equity Fund Raising of $542.9 million (net of issue costs of $17.7 million);

o Additional Borrowings of $216.1 million (net of transaction costs and other related costs of $1.8 million); and

o net Divestment proceeds of $168.5 million. Gross Divestment proceeds of $309.9 million were adjusted for the settlement of net liabilities (including termination of the related bank loan and cross currency swap entered into by ART) of $141.4 million,

• The effective interest expense on the Additional Borrowings is estimated to be 3.17% per annum;

• The Target Acquisitions were assumed to occur on 1 January 2009, except for Citadines Munich Arnulfpark which was assumed to occur on 1 December 2009 (being the date which TAL’s subsidiary originally acquired Citadines Munich Arnulfpark). The exchange rates at 1 January 2009 assumed solely for the purpose of deriving the purchase and divestment consideration and relevant funding are as follows:

1 January 2009 EUR $1.946 GBP $2.325 RMB $0.211 USD $1.439

The exchange rate at 30 November 2009 assumed for the purpose of deriving the purchase consideration of Citadines Munich Arnulfpark is based on GBP1.00 = $2.066.

C - 7

• The Manager’s acquisition fees for the Target Acquisitions (excluding Citadines Munich Arnulfpark) of $15.1 million were assumed to be paid in Units based on a share price of $1.15 per Unit on 1 January 2009. The Manager’s acquisition fees for the acquisition of Citadines Munich Arnulfpark of $0.4 million was assumed to be paid in Units based on a share price of $1.15 per Unit on 1 December 2009. Such acquisition fees were capitalised in serviced residence properties;

• The Manager’s divestment fees for the Divestment of $1.5 million were assumed to be paid in Units based on a share price of $1.15 per Unit on 1 January 2009. Such divestment fee was included in computing the profit from divestment (Note 6);

• Management fees payable to the Manager adjusted for the Target Acquisitions and Divestment were computed based on the formula as set out in Note 24. The management fees payable to the Manager for the Target Acquisitions were paid 100% in Units. The Units issued as payment for the management fees were assumed to be issued at the same prices as those Units that were actually issued as payment for management fees for the existing properties for the financial year ended 31 December 2009;

• Trustee’s fees for the Target Acquisitions and Divestment were assumed to be computed based on the formula as set out in Note 24;

• An amount of $12.2 million was assumed to be set aside from the proceeds of the Equity Fund Raising to be used as working capital and to fund capital expenditure. This amount has been included as part of the cash balance on 1 January 2009. It was assumed that no interest income was earned on the additional balance; and

• The exchange rates between the EUR, GBP, RMB, USD and Singapore dollar are assumed to be as follows:

Average rate for FY2009 EUR $2.023 GBP $2.259 RMB $0.213 USD $1.457

C - 8

(II) Unaudited Pro Forma Consolidated Balance Sheet

The Unaudited Pro Forma Consolidated Balance Sheet as at 31 December 2009 has been prepared assuming the Group had completed the Transactions on 31 December 2009 and after incorporating the following adjustments:

• Adjustments to reflect the net proceeds of $542.9 million (net of issue costs of $17.7 million) arising from the Equity Fund Raising relating to the issuance of 487,518,000 Units in the Trust on 31 December 2009 at an assumed issue price of $1.15 per Unit and Additional Borrowings of $242.8 million (net of transaction costs and other related costs of $2.1 million);

• Adjustments to reflect the gross divestment proceeds of $299.1 million and settlement of net liabilities (including termination of the related bank loan and cross currency swap entered into by ART) of $142.0 million arising from the Divestment; and

• Adjustments to reflect the Target Acquisitions at the net purchase consideration of $930.6 million.

In addition, the following key assumptions were made:

• The Manager’s acquisition fees for the Target Acquisitions of $15.9 million were assumed to be paid in Units based on a share price of $1.15 per Unit on 31 December 2009 and were capitalised in serviced residence properties;

• Subsequent to acquisition of the Target Properties on 31 December 2009, the carrying amount of the Target Properties was revalued to the assumed valuation of $1.40 billion;

• Cash and cash equivalents of $12.2 million as at 31 December 2009 would be set aside from proceeds of the Equity Fund Raising to be used as working capital and to fund capital expenditure;

• The Manager’s divestment fee for the Divestment of $1.5 million were assumed to be paid in Units based on a share price of $1.15 per Unit on 31 December 2009 and were included in profit from Divestment; and

• The exchange rates between the EUR, GBP, RMB, USD and Singapore dollar are assumed to be as follows:

31 December 2009 EUR $2.075 GBP $2.287 RMB $0.203 USD $1.387

C - 9

(III) Unaudited Pro Forma Consolidated Cash Flow Statement

The Unaudited Pro Forma Consolidated Cash Flow Statement for the financial year ended 31 December 2009 has been prepared assuming the Group had completed the Transactions on 1 January 2009 or on such dates that each of the properties were acquired by the TAL and its subsidiaries, whichever is later.

In arriving at the Unaudited Pro Forma Consolidated Cash Flow Statement for the financial year ended 31 December 2009, the following key adjustments were made:

• Adjustments to reflect the cash flows of the Target Properties acquired in relation to the Target Acquisitions;

• Adjustments to reflect the payments for the Target Acquisitions of $915.3 million;

• Adjustments to reflect the cash flows relating to the Additional Borrowings of $216.1 million (net of transaction costs and other related costs of $1.8 million) and;

• Adjustments to reflect the gross divestment proceeds of $309.9 million and settlement of net liabilities (including termination of the related bank loan and cross currency swap entered into by ART) of $141.4 million arising from the Divestment.

In addition, the following key assumptions were made:

• The Target Acquisitions were assumed to occur on 1 January 2009, except for Citadines Munich Arnulfpark which was acquired on 1 December 2009, at the aggregate net purchase consideration of $40.1 million;

• The Manager’s acquisition fees for the Target Acquisitions (excluding Citadines Munich Arnulfpark) and divestment fees for the Divestment are assumed to be paid in Units on 1 January 2009;

• 100% of taxable income and net overseas income available for distribution to unitholders based on the Group’s distribution policy is distributed for the financial year ended 31 December 2009. Distributions to unitholders are paid on a semi-annual basis, in arrears;

• Interest expense on Additional Borrowings is calculated based on an effective interest rate of 3.17% per annum and is paid on the last day of the period presented; and

• The exchange rates between the EUR, GBP, RMB, USD and Singapore dollar are assumed to be as follows:

Average rate for 1 January 2009 FY2009 31 December 2009 EUR $1.946 $2.023 $2.075 GBP $2.325 $2.259 $2.287 RMB $0.211 $0.213 $0.203 USD $1.439 $1.457 $1.387

C - 10

C. UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF TOTAL RETURN

The Unaudited Pro Forma Consolidated Statement of Total Return of the Group for the financial year ended 31 December 2009 has been prepared for inclusion in this OIS and is presented below. The assumptions used to prepare the Unaudited Pro Forma Consolidated Statement of Total Return are consistent with those described in Bases of Preparation of Unaudited Pro Forma Consolidated Financial Information in Section B above.

Financial year ended 31 December 2009

Pro Audited forma 2009 Pro forma adjustments 2009 Note $’000 $’000 $’000 $’000 $’000 (i) (ii) (iii)

Gross revenue 2 175,522 121,430 – (14,413) 282,539 Direct expenses 3 (90,969) (48,370) – 10,010 (129,329) Gross profit 84,553 73,060 – (4,403) 153,210

Finance income 4 723 (64) – (34) 625

Other income 534 1,876 – (13) 2,397 Audit fees (850) (774) – 61 (1,563) Finance costs 4 (23,741) (29,886) – 4,310 (49,317) Manager’s management fees 5 (7,451) (6,436) – 742 (13,145) Professional fees (977) (1,096) – 14 (2,059) Trustee’s fees (198) (140) – 18 (320) Foreign exchange loss - realised (246) (234) – (205) (685) Foreign exchange gain/ (loss) - unrealised 27 (587) – (2,520) (3,080) Other operating expenses (812) (199) – – (1,011) Net income before share of loss of associate 51,562 35,520 – (2,030) 85,052 Share of loss of associate (net of tax) (8) – – – (8) Net income 51,554 35,520 – (2,030) 85,044

Net change in fair value of serviced residence properties (49,361) – (91,577) 15,797 (125,141) Net change in fair value of financial derivatives (3,072) – – 2,984 (88) Profit from divestment 6 – – – 102,440 102,440 Total (loss)/return for the year before income tax (879) 35,520 (91,577) 119,191 62,255 Income tax expense 7 (14,630) (7,116) (532) (9,165) (31,443) Total (loss)/return for the year (15,509) 28,404 (92,109) 110,026 30,812

C - 11

C. UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF TOTAL RETURN (continued)

Pro Audited forma 2009 Pro forma adjustments 2009 Note $’000 $’000 $’000 $’000 $’000 (i) (ii) (iii)

Total (loss) /return attributable to: Unitholders (21,133) 28,105 (92,167) 110,026 24,831 Minority interests 5,624 299 58 – 5,981 (15,509) 28,404 (92,109) 110,026 30,812

Earnings per Unit (cents) Basic 8 (3.44) 2.22 Diluted 8 (3.44) 2.22

Notes:

(i) Adjustments to reflect the property income and expenses, finance costs, Trustee’s fees and Manager’s fees arising from the Target Acquisitions and Additional Borrowings.

(ii) Adjustments to reflect the net change in fair value of the Target Properties pertaining to the Target Acquisitions based on the historical valuations as at 1 January 2009 and 31 December 2009.

(iii) Adjustment to reverse property income and expense, finance costs, Trustee’s fees, Manager’s fee and net change in fair value of Ascott Beijing and cross currency swap and to reflect Manager’s divestment fees and gain on disposal of subsidiaries arising from the Divestment.

C - 12

D. UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET

The Unaudited Pro Forma Consolidated Balance Sheet as at 31 December 2009 has been prepared for inclusion in the O IS and is presented below. The assumptions used to prepare the Unaudited Pro Forma Consolidated Balance Sheet are consistent with those described in Bases of Preparation of Unaudited Pro Forma Consolidated Financial Information in Section B above.

Audited Pro forma 31 Dec 31 Dec Note 2009 Pro forma adjustments 2009 $’000 $’000 $’000 $’000 $’000 (i) (ii) (iii) Non-current assets Serviced residence properties 9 1,528,311 1,392,039 (178,490) – 2,741,860 Plant and equipment 10 28,555 13,532 (1,342) – 40,745 Associate 11 3,416 – – – 3,416 Financial derivatives 12 195 569 – – 764 Deferred tax assets 13 213 9,211 – – 9,424 1,560,690 1,415,351 (179,832) – 2,796,209

Current assets Inventories 345 – – – 345 Trade and other receivables 14 27,718 13,907 (722) – 40,903 Cash and cash equivalents 15 63,228 (895,402) 157,085 786,865 111,776 91,291 (881,495) 156,363 786,865 153,024

Total assets 1,651,981 533,856 (23,469) 786,865 2,949,233

Non-current liabilities Financial liabilities 16 555,389 456,759 (88,792) 243,929 1,167,285 Financial derivatives 12 19,051 9,885 (14,623) – 14,313 Deferred tax liabilities 13 7,113 17,957 – – 25,070 581,553 484,601 (103,415) 243,929 1,206,668

Current liabilities Trade and other payables 17 72,307 22,150 (12,693) – 81,764 Financial liabilities 16 95,712 21,320 (4,121) – 112,911 Provision for taxation 5,612 4,030 120 – 9,762 173,631 47,500 (16,694) – 204,437

Total liabilities 755,184 532,101 (120,109) 243,929 1,411,105

Net assets 896,797 1,755 96,640 542,936 1,538,128

C - 13

D. UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET (continued)

Audited Pro forma 31 Dec 31 Dec Note 2009 Pro forma adjustments 2009 $’000 $’000 $’000 $’000 $’000 (i) (ii) (iii) Represented by:

Unitholders’ funds 18 825,061 (1,116) 96,640 542,936 1,463,521 Minority interests 71,736 2,871 – – 74,607 Net assets 896,797 1,755 96,640 542,936 1,538,128

Units in issue (‘000) 19 617,210 1,119,849

Net assets per unit (iv) 1.34 1.31

Notes:

(i) Adjustments to reflect the Target Acquisitions.

(ii) Adjustments to reflect the Divestment.

(iii) Adjustments to reflect the proceeds arising from the Equity Fund Raising and Additional Borrowings.

(iv) Had ART’s distributable income for the period from 1 July 2009 to 31 December 2009 been made on 31 December 2009, net assets per unit for existing group and pro forma group would be $1.30 and $1.29, respectively.

C - 14

E. UNAUDITED PRO FORMA CONSOLIDATED CASH FLOW STATEMENT

31 December 2009 Note $’000 Cash flows from operating activities

Total return before income tax 62,255 Adjustments for: Depreciation of plant and equipment 8,312 Finance costs 49,317 Finance income (625) Foreign exchange loss – unrealised 3,080 Gain on disposal of plant and equipment (75) Reversal of impairment loss (127) Manager’s management fees paid/payable in units 9,791 Net change in fair value of financial derivatives 88 Net change in fair value of serviced residence properties 125,141 Profit from divestment (102,440) Share of loss of associate 8 Operating income before working capital changes 154,725 Changes in working capital: Inventories 145 Trade and other payables (28,028) Trade and other receivables (922) Cash generated from operations 125,920 Income tax paid (21,790) Net cash from operating activities 104,130

Cash flows from investing activities Acquisition of subsidiaries, net of cash acquired A (799,966) Acquisition of serviced residence property B (107,000) Capital expenditure on serviced residence properties (2,992) Interest received 723 Proceeds from sale of plant and equipment 359 Purchase of plant and equipment (10,661) Payment of cross-currency swap (22,052) Proceeds from divestment 219,549 Net cash used in investing activities (722,040)

Balance carried forward (617,910)

C - 15

E. UNAUDITED PRO FORMA CONSOLIDATED CASH FLOW STATEMENT (continued)

31 December 2009 $’000

Balance brought forward (617,910)

Cash flows from financing activities Distributions to Unitholders (89,311) Dividends paid to minority shareholders (2,453) Interest paid (50,883) Proceeds from equity fund raising 560,645 Expenses incurred for divestment (13,965) Payment of finance lease (4,378) Payment of issue expenses (17,709) Proceeds from borrowings 357,727 Repayment of borrowings (112,864) Net cash from financing activities 626,809

Net increase in cash and cash equivalents 8,899 Cash and cash equivalents at beginning of year 56,110 Effect of foreign exchange rate changes on cash balances 1,781 Cash and cash equivalents at end of year 66,790

C - 16

Notes:

(A) Acquisition of subsidiaries

The Acquisition had the following effect on the Group’s assets and liabilities on acquisition date.

Recognised values on acquisition $’000

Serviced residence properties 1,278,991 Plant and equipment 13,138 Financial derivatives 837 Deferred tax assets 8,157 Trade and other receivables 181,209 Cash and bank balances 31,922 Trade and other payables (19,184) Financial liabilities (468,434) Provision for taxation (4,179) Deferred tax liabilities (14,112) Minority interests (8,559) Net identifiable assets and liabilities acquired 999,786

Cash consideration paid, satisfied in cash 999,786 Cash acquired (31,922) Consideration receivable (167,898) Net cash outflow 799,966

(B) Acquisition of serviced residence property

The effect of acquisition of serviced residence property is set out below:

31 December 2009 $’000

Serviced residence property 107,000 Net cash outflow 107,000

C - 17

F. NOTES TO THE UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION

1 Significant Accounting Policies of the Group

The significant accounting policies of the Group, which have been consistently applied in preparing the Unaudited Pro Forma Consolidated Financial Information set out in this report, are as follows:

1.1 Basis of preparation

(a) Statement of compliance

The Unaudited Pro Forma Consolidated Financial Information is prepared in accordance with the bases set out in Section B and applied to financial information prepared in accordance with Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” (“RAP 7”) issued by the Institute of Certified Public Accountants of Singapore and the applicable requirements of the Code on Collective Investment Schemes (“CIS Code”) issued by the Monetary Authority of Singapore (“MAS”) and the provisions of the Trust Deed.

(b) Basis of measurement

The Unaudited Pro Forma Consolidated Financial Information is prepared on the historical cost basis, except for serviced residence properties and certain financial assets and liabilities which are stated at fair value.

The Unaudited Pro Forma Consolidated Financial Information, presented in Singapore dollars, have been rounded to the nearest thousand, unless otherwise stated.

Items included in the Unaudited Pro Forma Consolidated Financial Information of each entity in the Group are measured using the currency that best reflects the economic substance of the underlying events and circumstances relevant to that entity (the “functional currency”). The Unaudited Pro Forma Consolidated Financial Information of the Group is presented in Singapore dollars, which is the functional currency of the Trust.

(d) Use of estimates and judgements

The preparation of the Unaudited Pro Forma Consolidated Financial Information in conformity with RAP 7 requires the Manager to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods effected.

C - 18

Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes:

• Note 9 – Valuation of serviced residence properties

• Note 23 – Valuation of financial instruments

The accounting policies set out below have been applied consistently by the Group in the Unaudited Pro Forma Consolidated Financial Information.

1.2 Basis of consolidation

Subsidiaries

Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the Unaudited Pro Forma Consolidated Financial Information from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed where necessary to align them with the policies adopted by the Group.

The Group’s acquisition of subsidiaries are primarily accounted for as acquisitions of assets as the subsidiaries are special purpose vehicles established for the sole purpose of holding assets.

Associates

Associates are those entities in which the Group has significant influence, but not control, over their financial and operating policies. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity. Associates are accounted for using the equity method and are recognised initially at cost. The Unaudited Pro Forma Consolidated Financial Information include the Group’s share of the income, expenses and equity movements of associates, after adjustments to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases. When the Group’s share of losses exceeds its interest in an associate, the carrying amount of that interest (including any long-term investments) is reduced to zero and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee.

Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income or expenses arising from intra- group transactions, are eliminated in preparing the Unaudited Pro Forma Consolidated Financial Information. Unrealised gains arising from transactions with associates are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

C - 19

1.3 Foreign currencies

Foreign currency transactions

Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the reporting period. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.

Foreign currency differences arising on retranslation are recognised in the Unaudited Pro Forma Statement of Total Return, except for differences arising on the retranslation of available for-sale equity instruments, financial liabilities designated as hedges of the net investment in a foreign operation (see below), or qualifying cash flow hedges, which are recognised in Unitholders’ funds. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

Foreign operations

The assets and liabilities of foreign operations are translated to Singapore dollars at exchange rates at the reporting date. The income and expenses of foreign operations, excluding foreign operations in hyperinflationary economies, are translated to Singapore dollars at exchange rates at the dates of the transactions. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate.

Foreign currency differences are recognised in Unitholders’ funds. When a foreign operation is disposed of, in part or in full, the relevant amount in the foreign currency translation reserve is transferred to total return as part of the profit or loss on disposal.

When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation and are recognised in Unitholders’ funds, and are presented within equity in the foreign currency translation reserve.

Hedge of net investment in foreign operation

Foreign currency differences arising on the retranslation of a financial liability designated as a hedge of a net investment in a foreign operation are recognised in Unitholders’ funds to the extent that the hedge is effective, and are presented within equity in the foreign currency translation reserve. To the extent that the hedge is ineffective, such differences are recognised in the Unaudited Pro Forma Statement of Total Return. When the hedged part of a net investment is disposed of, the relevant amount in the foreign currency translation reserve is transferred to the Unaudited Pro Forma Statement of Total Return as part of the profit or loss on disposal.

C - 20

1.4 Serviced residence properties

Serviced residence properties comprise serviced residences and rental housing properties. Serviced residence properties are accounted for as non-current assets and are stated at initial cost on acquisition and at fair value thereafter. The cost of a purchased property comprises its purchase price and any directly attributable expenditure. Transaction costs shall be included in the initial measurement. Fair value is determined in accordance with the Trust Deed, which requires the serviced residence properties to be valued by independent registered valuers in the following events:

• at least once in each period of 12 months following the acquisition of each parcel of real estate property; and

• for acquisition and disposal of real estate property as required by the CIS Code issued by MAS.

Acquisition of serviced residence properties are accounted for by the Group as acquisition of assets.

Any increase or decrease on revaluation is credited or charged to the Unaudited Pro Forma Statement of Total Return as a net change in fair value of the serviced residence properties.

Subsequent expenditure relating to serviced residence properties that has already been recognised is added to the carrying amount of the asset when it is probable that future economic benefits, in excess of originally assessed standard of performance of the existing asset, will flow to the Group. All other subsequent expenditure is recognised as an expense in the period in which it is incurred.

When a serviced residence property is disposed of, the resulting gain or loss recognised in the Unaudited Pro Forma Consolidated Statement of Total Return is the difference between net disposal proceeds and the carrying amount of the property.

Serviced residence properties are not depreciated. The properties are subject to continual maintenance and regularly revalued on the basis set out above.

C - 21

1.5 Plant and equipment

Recognition and measurement

Plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of plant and equipment have different useful lives, they are accounted for as separate items (major components) of plant and equipment.

Gains and losses on disposal of an item of plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of plant and equipment, and are recognised net within other income in the Unaudited Pro Forma Consolidated Statement of Total Return.

Subsequent costs

The cost of replacing a part of an item of plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group, and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of plant and equipment are recognised in Unaudited Pro Forma Consolidated Statement of Total Return as incurred.

Depreciation

Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value.

Depreciation is recognised in the Unaudited Pro Forma Consolidated Statement of Total Return on a straight-line basis over the estimated useful lives of each part of an item of plant and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term.

Asset under construction are not depreciated.

The estimated useful lives for the current and comparative periods are as follows:

Renovation - 8 to 12 years Motor vehicles - 5 years Office equipment, computers and furniture - 3 to 8 years

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

C - 22

1.6 Financial instruments

Non-derivative financial assets

The Group initially recognises loans and receivables and deposits on the date that they are originated. All other financial assets (including assets designated at fair value through total return) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument.

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.

Financial assets and liabilities are offset and the net amount presented in the Unaudited Pro Forma Consolidated Balance Sheet when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The Group has the following non-derivative financial assets: loans and receivables.

Loans and receivables

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses.

Loans and receivables comprise trade and other receivables.

Cash and cash equivalents comprise cash balances and bank deposits. Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and cash equivalents for the purpose of the Unaudited Pro Forma Consolidated Cash Flow Statement.

Non-derivative financial liabilities

The Group initially recognises all other financial liabilities (including liabilities designated at fair value through the Unaudited Pro Forma Consolidated Statement of Total Return) on the trade date at which the Group becomes a party to the contractual provisions of the instrument.

The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.

The Group has the following non-derivative financial liabilities: loans and borrowings and trade and other payables.

Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method.

C - 23

Derivative financial instruments, including hedge accounting

The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. Embedded derivatives are separated from the host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative are not closely related, a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative, and the combined instrument is not measured at fair value through total return.

On initial designation of the hedge, the Group formally documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Group makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, whether the hedging instruments are expected to be “highly effective” in offsetting the changes in the fair value or cash flows of the respective hedged items during the period for which the hedge is designated, and whether the actual results of each hedge are within a range of 80%-125%. For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that could ultimately affect reported net income.

Derivatives are recognised initially at fair value; attributable transaction costs are recognised in the Unaudited Pro Forma Consolidated Statement of Total Return as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below.

Cash flow hedges

When a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction that could affect total return, the effective portion of changes in the fair value of the derivative is recognised in the hedging reserve in equity. The amount recognised and presented in hedging reserve in Unitholders’ funds is removed and included in total return in the same period as the hedged cash flows affect total return under the same line item in the statement of total return as the hedged item. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in the Unaudited Pro Forma Consolidated Statement of Total Return.

If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. The cumulative gain or loss previously recognised in the hedging reserve in Unitholders’ funds remain there until the forecast transaction affects the Unaudited Pro Forma Consolidated Statement of Total Return. When the hedged item is a non-financial asset, the amount recognised in the hedging reserve is transferred to the carrying amount of the asset when the asset is recognised. If the forecast transaction is no longer expected to occur, then the balance in the hedging reserve is recognised immediately in the Unaudited Pro Forma Consolidated Statement of Total Return. In other cases, the amount recognised in the hedging reserve is transferred to total return in the same period that the hedged item affects total return.

C - 24

Fair value hedges

Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognised in the Unaudited Pro Forma Consolidated Statement of Total Return. The hedged item also is stated at fair value in respect of the risk being hedged; the gain or loss attributable to the hedged risk is recognised in the Unaudited Pro Forma Statement of Total Return and the carrying amount of the hedged item is adjusted.

Other non-trading derivatives

When a derivative financial instrument is not held for trading, and is not designated in a qualifying hedge relationship, all changes in its fair value are recognised immediately in Unaudited Pro Forma Consolidated Statement of Total Return.

Intra-group financial guarantees

Financial guarantees are financial instruments issued by the Group that requires the issuer to make specified payments to reimburse the holder for the loss it incurs because a specified debtor fails to meet payment when due in accordance with the original or modified terms of a debt instrument.

Financial guarantees are recognised initially at fair value and are classified as financial liabilities. Subsequent to initial measurement, the financial guarantees are stated at the higher of the initial fair value less cumulative amortisation and the amount that would be recognised if they were accounted for as contingent liabilities. When financial guarantees are terminated before their original expiry date, the carrying amount of the financial guarantees is transferred to the Unaudited Pro Forma Consolidated Statement of Total Return.

Unitholders’ funds

Unitholders’ funds represent the Unitholders’ residual interest in the Group’s net assets upon termination and is classified as equity.

Incremental costs directly attributable to the issue of units are recognised as a deduction from Unitholders’ funds.

1.7 Impairment

Financial assets (including receivables)

A financial asset not carried at fair value through total return is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

C - 25

Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy. In addition, for an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment.

The Group considers evidence of impairment for receivables and held-to-maturity investments at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by grouping together receivables with similar risk characteristics.

In assessing collective impairment, the Group uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for the Manager’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in the Unaudited Pro Forma Statement of Total Return and reflected in an allowance account against receivables. Interest on the impaired asset continues to be recognised through the unwinding of the discount. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through the Unaudited Pro Forma Consolidated Statement of Total Return.

Non-financial assets

The carrying amounts of the Group’s non-financial assets, other than serviced residence properties, inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”, or “CGU”).

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the Unaudited Pro Forma Consolidated Statement of Total Return.

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

C - 26

1.8 Inventories

Inventories comprise principally food and beverage and other serviced residence and rental property related consumable stocks. Stocks are valued at the lower of cost and net realisable value. Cost is determined on a first-in, first-out basis.

1.9 Employment benefits

Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an employee benefit expense in the Unaudited Pro Forma Consolidated Statement of Total Return in the periods during which services are rendered by employees.

Short-term benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.

A liability is recognised for the amount expected to be paid under short-term cash bonus or profit sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

1.10 Revenue recognition

Rental income from operating leases

Rental income receivable under operating leases is recognised on a straight-line basis over the term of the lease, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased assets. Lease incentives granted are recognised as an integral part of the total rental to be received.

Hospitality income

Hospitality income from serviced residence operations is recognised on an accrual basis, upon rendering of the relevant services. Hospitality income includes fees from usage of the business centres and laundry facilities, recoveries from guests for utilities including telephone charges, income earned from the sales of food and beverages, recoveries of shortfall of net operating profit ("NOP") or earnings before net interest expenses, tax, depreciation and amortisation ("EBITDA"), service and maintenance fees, recoveries of property taxes and maintenance costs from tenants and fees for managing public areas as well as other miscellaneous income.

Carpark income

For carparks which are leased to an external operator, carpark income is recognised on a straight-line basis over the term of lease.

For other carparks, carpark income is recognised on an accrual basis.

C - 27

Interest income

Interest income from bank deposits is recognised as it accrues, using the effective interest method.

1.11 Income tax expense

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in the Unaudited Pro Forma Consolidated Statement of Total Return except to the extent that it relates to a business combination, or items recognised directly in Unitholders’ funds.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

The Inland Revenue Authority of Singapore (the “IRAS”) has issued a tax ruling on the income tax treatment of the Trust. Subject to meeting the terms and conditions of the tax ruling, the Trustee is not subject to tax on the taxable income of the Trust. Instead, the distributions made by the Trust out of such taxable income are distributed free of tax deducted at source to individual Unitholders and qualifying Unitholders. Qualifying Unitholders are companies incorporated and tax resident in Singapore, Singapore branches of foreign companies that have obtained waiver from the IRAS from tax deducted at source in respect of the distributions from the Trust, and bodies of persons registered or constituted in Singapore. This treatment is known as the tax transparency treatment.

The Trustee will deduct tax at the reduced rate of 10% from distributions made out of the Trust’s taxable income, that is not taxed at the Trust’s level to beneficial Unitholders who are qualifying foreign non-individual investors. A qualifying foreign non-individual investor is one who is not a resident of Singapore for income tax purposes, and does not have a permanent establishment in Singapore. Where the non-individual investor carries on any operation in Singapore through a permanent establishment in Singapore, the funds used by that person to acquire the Units cannot be obtained from that operation to qualify for the reduced tax rate.

For other types of Unitholders, the Trustee is required to withhold tax at the prevailing corporate tax rate on the distributions made by the Trust. Such Unitholders are subject to tax on the regrossed amounts of the distributions received but may claim a credit for the tax deducted at source by the Trustee.

C - 28

Distribution policy

The Trust will distribute at least 90% of its taxable income, other than gains from the sale of real estate properties that are determined by the IRAS to be trading gains, and net overseas income.

Net overseas income refers to the net profits (excluding any gains from the sale of property or shares, as the case may be) after applicable taxes and adjustment for non-cash items such as depreciation, derived by the Trust from its properties located outside Singapore.

Distributions are made on a semi-annual basis, with the amount calculated as at 30 June and 31 December each year for the six-month period ending on each of the said dates. In accordance with the provisions of the Trust Deed, the Manager is required to pay distributions declared within 60 days of the end of each distribution period. Distributions, when paid, will be in Singapore dollars.

1.12 Expenses

Direct expenses

Direct expenses consist of serviced residence management fees, property taxes, staff costs and other property outgoings in relation to serviced residence properties where such expenses are the responsibility of the Group.

Trustee’s fees

The Trustee’s fees are recognised on an accrual basis using the applicable formula stipulated in Note 24(i).

Manager’s management fees

Manager’s management fees are recognised on an accrual basis using the applicable formula stipulated in Note 24(ii).

Serviced residence management fees

The serviced residence management fees are recognised on an accrual basis using the applicable formula stipulated on Note 24(iii).

1.13 Finance costs

Interest expenses comprise interest expense on loans and borrowings and amortisation of loans and borrowings related costs. Interest expenses are recognised in the Unaudited Pro Forma Consolidated Statement of Total Return using the effective interest method.

1.14 Earnings per unit

The Group presents basic and diluted earnings per unit (EPU) data for its ordinary units. Basic EPU is calculated by dividing the total return attributable to Unitholders of the Group by the weighted average number of ordinary units outstanding during the period. Diluted EPU is determined by adjusting the total return attributable to Unitholders and the weighted average number of ordinary units outstanding for the effects of all dilutive potential ordinary units.

C - 29

1.15 Segment reporting

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating segments’ operating results are reviewed regularly by the Manager’s CEO to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that be allocated on a reasonable basis. Unallocated items mainly comprise income- earning assets and revenue, borrowings and expenses, and corporate assets and expenses.

Segment capital expenditure is the total costs incurred during the year to acquire segment assets that are expected to be used for more than one year.

2 Gross revenue 2009 $’000

Gross rental income 262,023 Hospitality income 16,612 Carpark income 3,904 282,539

3 Direct expenses 2009 $’000

Operations and maintenance expenses 29,250 Staff costs 24,512 Serviced residence management fees 20,330 Property tax 11,450 Depreciation of plant and equipment 8,312 Marketing and selling expenses 5,530 Administrative and general expenses 24,799 Other direct expenses 5,146 129,329

Included in the Group’s staff costs is contribution to defined contribution plans of $1,174,000.

C - 30

4 Finance income and costs 2009 $’000 Finance income Bank deposits 625

Finance costs Interest on bank loans (40,876) Interest rate swaps (4,285) Amortisation of transaction costs and other related costs (4,642) Interest on loan from related parties (77) Interest rate cap 563 (49,317)

5 Manager’s management fees

Manager’s management fees of the Group include base management fees of $7,453,000 and performance fees of $5,692,000. For the existing properties, the Manager has elected to receive 50% of the aggregate manager’s fees in the form of cash and 50% in Units. For the Target Acquisition, the Manager has elected to receive 100% of the aggregate manager’s fee’s in the form of Units. For the year ended 31 December 2009, the total units issued for manager’s management fees amounted to 11,714,000 Units.

6 Profit from divestment

Profit from Divestment relates to the sale of Hemliner Pte Ltd and its subsidiary.

Divestment fee, stamp duty, professional fees and penalty arising from early termination of property management contract and bank loan of $13,965,000 in aggregate has been included in arriving at profit from Divestment.

Witholding tax of $9,307,000 pertaining to the Divestment has been included in income tax expense (Note 7).

C - 31

7 Income tax expense 2009 $’000 Current tax expense

Current year 12,825 Overprovided in prior years (927) Withholding tax 11,194 23,092

Deferred tax expense

Origination and reversal of temporary differences 5,001 Underprovided in prior years 3,350 8,351

Income tax expense 31,443

Reconciliation of effective tax rate

Total return before income tax 62,255

Income tax using the Singapore tax rate of 17% 10,583 Effect of different tax rates in foreign jurisdictions (14,198) Tax rebate/relief/exemption (1,243) Income not subject to tax (31,338) Tax benefits not recognised 4,738 Expenses not deductible for tax purposes 54,901 Utilisation of previously unrecognised tax losses (5,111) Tax transparency (506) Underprovided in prior years 2,423 Withholding tax 11,194 31,443

C - 32

8 Earnings per Unit

The calculation of basic earnings per Unit for the Group was based on the total return for the year attributable to Unitholders and a weighted average number of units outstanding:

2009 $’000

Total return for the year attributable to Unitholders 24,831

2009 Number of units ’000

Issued units at beginning of the year 610,815 Effect of issue of new Units: - as Manger’s acquisition fees paid in Units 13,188 - as Manager’s divestment fees paid in Units 1,325 - as Manager’s fees partially paid in Units 6,113 - Equity Fund Raising 487,518 Weighted average number of units outstanding during the year 1,118,959

Diluted earnings per Unit is the same as the basic earnings per Unit as there are no dilutive instruments in issue during the year.

C - 33

9 Serviced residence properties

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Singapore

Somerset Grand Cairnhill, 15 Cairnhill Road Leasehold 99 years 72 years 216,162 14.8 Singapore (1) Singapore 229650

Somerset Liang Court Property, 177B River Valley Road Leasehold 97 years 67 years 179,210 12.2 Singapore (1) Singapore 179032

C -34 Citadines Singapore Mount 8 Wilkie Road, #01-26 Wilkie Edge Leasehold 96 years 95 years 104,517 7.1 Sophia Property (2) Singapore 228095

Australia

Somerset Gordon Heights, 19 - 25 Little Bourke Street, Freehold Not Not 12,664 0.9 Melbourne (1) Melbourne Victoria 3000 applicable applicable

Somerset St Georges Terrace, 185 St Georges Terrace, Freehold Not Not 34,409 2.4 Perth (1) Perth WA 6000 applicable applicable

Balance carried forward 546,962 37.4

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Balance brought forward 546,962 37.4

People’s Republic of China

Somerset Grand Fortune Garden 46 Liangmaqiao Road, Leasehold 70 years 59 years 45,796 3.1 Property, Beijing (1) Chaoyang District, Beijing 100125

Somerset Xu Hui, Shanghai (1) 888 Shaanxi Nan Road, Leasehold 70 years 56 years 49,741 3.4 C -35 Xu Hui District, Shanghai 200031

Somerset Olympic Tower Property, 126 Chengdu Dao, Leasehold 70 years 53 years 77,596 5.3 Tianjin (1) Heping District, Tianjin 300051

Balance carried forward 720,095 49.2

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Balance brought forward 720,095 49.2

Indonesia

Ascott Jakarta (1) 2 Jalan Kebon Kacang Raya, Leasehold 26 years 14 years 33,934 2.3 Jakarta 10230

Somerset Grand Citra, Jakarta (1) Jalan Prof Dr Satrio Kav 1, Leasehold 30 years 15 years 39,266 2.7 Jakarta 12940

C -36 Country Woods, Jakarta (1) Jalan WR Supratman, Leasehold 20 years 16 years 18,451 1.3 Pondok Ranji, Ciputat, Tangerang (South Jakarta) 15412

Balance carried forward 811,746 55.5

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Balance brought forward 811,746 55.5

Japan

Somerset Azabu East, Tokyo (1) 1-9-11 Higashi Azabu, Freehold Not Not 67,184 4.6 Minato-ku, Tokyo 106-0044 applicable applicable

Somerset Roppongi, Tokyo (1) 3-4-31 Roppongi, Freehold Not Not 50,838 3.5 Minato-ku, Tokyo 106-0032 applicable applicable

C -37 Asyl Court Nakano Sakaue, 1-14-12 Honcho, Freehold Not Not 22,658 1.5 Tokyo (1) (3) Nakano-ku, Tokyo applicable applicable

Gala Hachimanyama I, Tokyo (1) (3) 2-1-18 Kamitakaido, Freehold Not Not 22,642 1.5 Suginami-ku, Tokyo applicable applicable

Gala Hachimanyama II, Tokyo (1) (3) 2-1-2 Kamitakaido, Freehold Not Not 4,221 0.3 Suginami-ku, Tokyo applicable applicable

Balance carried forward 979,289 66.9

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Balance brought forward 979,289 66.9

Japan

Joy City Koishikawa Shokubutsuen, 3-35-18 Otsuka, Freehold Not Not 11,545 0.8 Tokyo (1) (3) Bunkyo-ku, Tokyo applicable applicable

Joy City Kuramae, Tokyo (1) (3) 2-24-1 Kuramae, Freehold Not Not 20,899 1.4 Taito-ku, Tokyo applicable applicable

C -38 Zesty Akebonobashi, Tokyo (1) (3) 1-17 Tomihisacho, Freehold Not Not 5,308 0.4 Shinjuku-ku, Tokyo applicable applicable

Zesty Gotokuji, Tokyo (1) (3) 6-42-5 Matsubara, Freehold Not Not 4,813 0.3 Setagaya-ku, Tokyo applicable applicable

Zesty Higashi Shinjuku, Tokyo (1) (3) 6-15-20 Shinjuku, Freehold Not Not 6,988 0.5 Shinjuku-ku, Tokyo applicable applicable

Balance carried forward 1,028,842 70.3

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Balance brought forward 1,028,842 70.3

Japan

Zesty Kagurazaka I, Tokyo (1) (3) 2-13 Nishigokencho, Freehold Not Not 7,499 0.5 Shinjuku-ku, Tokyo applicable applicable

Zesty Kagurazaka II, Tokyo (1) (3) 123-3 Yaraicho, Freehold Not Not 6,635 0.5 Shinjuku-ku, Tokyo applicable applicable

C -39 Zesty Kasugacho, Tokyo (1) (3) 6-4-15 Kasugacho, Freehold Not Not 7,547 0.5 Nerima-ku, Tokyo applicable applicable

Zesty Koishikawa, Tokyo (1) (3) 5-41-7 Koishikawa, Freehold Not Not 4,093 0.3 Bunkyo-ku, Tokyo applicable applicable

Zesty Komazawa Daigaku II, 2-12-21 Higashigaoka, Freehold Not Not 12,120 0.8 Tokyo (1) (3) Meguro-ku, Tokyo applicable applicable

Balance carried forward 1,066,736 72.9

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Balance brought forward 1,066,736 72.9

Japan

Zesty Nishi Shinjuku III, Tokyo (1) (3) 3-18-15 Nishishinjuku, Freehold Not Not 12,952 0.9 Shinjuku-ku, Tokyo applicable applicable

Zesty Sakura Shinmachi, Tokyo (1) (3) 3-11-3 Tsurumaki, Freehold Not Not 7,148 0.5 Setagaya-ku, Tokyo applicable applicable

C -40 Zesty Shin Ekoda, Tokyo (1) (3) 1-2-2 Toyotamakami, Freehold Not Not 4,621 0.3 Nerima-ku, Tokyo applicable applicable

Zesty Shoin Jinja, Tokyo (1) (3) 4-3-3 Setagaya, Freehold Not Not 5,261 0.4 Setagaya-ku, Tokyo applicable applicable

Zesty Shoin Jinja II, Tokyo (1) (3) 4-5-4 Setagaya, Freehold Not Not 7,100 0.5 Setagaya-ku, Tokyo applicable applicable

Balance carried forward 1,103,818 75.5

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Balance brought forward 1,103,818 75.5

The Philippines

Ascott Makati (1) Glorietta 4, Ayala Center, Makati Leasehold 48 years 34 years 89,377 6.1 City 1224

Somerset Millennium, Makati (1) 104 Aguirre Street, Freehold Not Not 12,637 0.9 Legaspi Village, applicable applicable Makati City 1229 C -41 Somerset Salcedo Property, Makati (1) HV Dela Costa Corner Freehold Not Not 11,768 0.8 LP Leviste Street, applicable applicable Salcedo Village, Makati City 1227

Balance carried forward 1,217,600 83.3

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Balance brought forward 1,217,600 83.3

Vietnam

Somerset Grand Hanoi (1) 49 Hai Ba Trung Street, Leasehold 45 years 28 years 95,077 6.5 Hanoi

Somerset West Lake, Hanoi (1) 254D Thuy Khue Road, Leasehold 49 years 32 years 29,066 2.0 Hanoi

C -42 Somerset Hoa Binh, Hanoi (2) 106 Hoang Quoc Viet Street, Leasehold 36 years 32 years 51,048 3.5 Hanoi

Somerset Chancellor Court, Ho Chi 21-23 Nguyen Thi Minh Leasehold 48 years 32 years 59,007 4.0 Minh City (1) Khai Street, District 1, Ho Chi Minh City

Somerset Ho Chi Minh City (1) 8A Nguyen Binh Leasehold 45 years 30 years 53,588 3.7 Khiem Street, District 1, Ho Chi Minh City

Balance carried forward 1,505,386 103.0

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Balance brought forward 1,505,386 103.0

France Citadines Lille Centre (2) (4) Avenue Willy Brandt – Euralille Freehold Not Not 19,239 1.3 59777 Lille applicable applicable

Citadines Grenoble (2) (4) 9-11 rue de Strasbourg 38000 Freehold Not Not 19,810 1.3 Grenoble applicable applicable

Citadines Paris Louvre (2) (4) 8 rue de Richelieu 75001 Paris Freehold Not Not 47,849 3.2 applicable applicable C -43

Citadines Paris Trocadéro (2) (4) 29 bis, rue Saint-Didier 75116 Paris Freehold Not Not 60,828 4.1 applicable applicable

Citadines Lyon Presqu'île (2) (4) 2 rue Thomassin 69002 Lyon Freehold Not Not 25,351 1.7 applicable applicable

Citadines Paris Place d’ltalie (2) (4) 18 place d’ltalie 75013 Paris Freehold Not Not 66,807 4.6 applicable applicable

Citadines Paris Montmartre (2) (4) 16 avenue Rachel 75018 Paris Freehold Not Not 47,910 3.3 applicable applicable

Balance carried forward 1,793,180 122.5

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Balance brought forward 1,793,180 122.5

France Citadines Paris Tour Eiffel (2) (4) 132 boulevard de Grenelle 75015 Freehold Not Not 70,168 4.8 Paris applicable applicable

Citadines Montpellier 588 boulevard d’Antigone 34000 Freehold Not Not 16,364 1.1 Antigone (2) (4) (5) Montpellier applicable applicable

Citadines Marseille 60 rue du Rouet 13006 Marseille Freehold Not Not 12,650 0.8 C -44 Castellane (2) (4) (5) applicable applicable

Citadines Paris Austerlitz (2) (4) (5) 27 rue Esquirol 75013 Paris Freehold Not Not 11,363 0.8 applicable applicable

Citadines Paris Voltaire 75 bis, avenue Parmentier 75011 Freehold Not Not 25,154 1.7 République (2) (4) (5) Paris applicable applicable

Citadines Paris Maine- 67 avenue du Maine 75014 Paris Freehold Not Not 24,448 1.7 Montparnasse (2) (4) (5) applicable applicable

Balance carried forward 1,953,327 133.4

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Balance brought forward 1,953,327 133.4

France

Citadines Marseille Prado 9-11 boulevard de Louvain 13008 Freehold Not Not 11,207 0.8 Chanot (2) (4) Marseille applicable applicable

Citadines Cannes Carnot (2) (4) (5) 1 rue le Poussin 06400 Cannes Freehold Not Not 9,972 0.7 applicable applicable C -45

Citadines Paris Didot Alésia (2) (4) (5) 94 rue Didot 75014 Paris Freehold Not Not 30,539 2.1 applicable applicable

Citadines Paris Les Halles (2) (4) 4 rue des Innocents 75001 Paris Freehold Not Not 104,600 7.1 applicable applicable

Balance carried forward 2,109,645 144.1

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Balance brought forward 2,109,645 144.1

United Kingdom

Citadines London Barbican(2) 7-21 Goswell Road London Freehold Not Not 78,706 5.4 EC 1M 7AH applicable applicable

Citadines London Trafalgar 18-21 Northumberland Avenue Freehold Not Not 144,119 9.8 Square(2) London WC2N 5EA applicable applicable

C -46

Citadines London South 35A Gloucester Road London Freehold Not Not 77,720 5.4 Kensington (2) SW7 4PL applicable applicable

Citadines London Holborn-Covent 94-99 High Holborn London Freehold Not Not 140,621 9.6 Garden (2) WC1V 6LF applicable applicable

Balance carried forward 2,550,811 174.3

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Balance brought forward 2,550,811 174.3

Belgium

Citadines Bruxelles Sainte- 51 Quai au Bois à Brûler Freehold Not Not 31,272 2.1 Catherine (2) 1000 Bruxelles applicable applicable

Citadines Bruxelles Toison d’Or (2) 61-63 Avenue de la Toison d’Or Freehold Not Not 27,411 1.8 1060 Bruxelles applicable applicable

C -47 Germany

Citadines Berlin Olivaer Platz 1, 10707 Berlin- Freehold Not Not 24,977 1.7 Kurfürstendamm (2) (4) Wilmersdorf applicable applicable

Citadines Munich Arnulfpark (2) (4) Arnulfstrase 51 80636 München Freehold Not Not 40,314 2.8 applicable applicable

Balance carried forward 2,674,785 182.7

Remaining Valuation as at Percentage of Tenure of Term of Term of 31 December Unitholders’ Description of Property Location Land Lease Lease 2009 funds $’000 %

Balance brought forward 2,674,785 182.7

Spain

Citadines Barcelona Ramblas (2) Ramblas 122 08002 Barcelona Freehold Not Not 67,075 4.6 applicable applicable Portfolio of serviced residence 2,741,860 187.3

Other assets and liabilities (net) (1,203,732) (82.2) C -48

Minority interest (74,607) (5.1)

Unitholders’ funds 1,463,521 100.0

Somerset Liang Court Property, Somerset Grand Cairnhill, Somerset Olympic Tower Property, Somerset Grand Hanoi, Somerset Ho Chi Minh City, Somerset Chancellor Court, Somerset Azabu East, Somerset Roppongi, Zenith Residences, Somerset St Georges Terrace, Citadines Lille Centre, Citadines Grenoble, Citadines Paris Louvre, Citadines Paris Trocadéro, Citadines Lyon Presqu'île, Citadines Paris Place d’ltalie, Citadines Paris Montmartre, Citadines Paris Tour Eiffel, Citadines Montpellier Antigone, Citadines Marseille Castellane, Citadines Paris Austerlitz, Citadines Paris Voltaire République, Citadines Paris Maine-Montparnasse, Citadines Marseille Prado Chanot, Citadines Cannes Carnot, Citad ines Paris Didot Alésia, Citadines Paris Les Halles, Citadines London Barbican, Citadines London Trafalgar Square, Citadines London South Kensington, Citadines London Holborn-Covent Garden, Citadines Bruxelles Sainte-Catherine, Citadines Bruxelles Toison d’Or, Citadines Berlin Kurfürstendamm, Citadines Munich Arnulfpark and Citadines Barcelona Ramblas are pledged as security to banks for banking facilities granted to certain subsidiaries (Note 16).

(1) Valued by HVS as at 31 December 2009.

(2) Average of the two independent valuations by Savills UK and HVS as at 1 July 2010.

(3) Rental housing properties (collectively known as “Zenith Residences”).

(4) The existing master lease agreement in respect of these serviced residence properties will continue to subsist upon completion of the Target Acquisitions.

(5) Of the Europe Target Properties, seven in France are leased by the Group under finance lease arrangements, pursuant to which, the finance lessee has a contractual right to use the premises. Under each of the finance lease arrangement, the relevant finance lessee m ay acquire the legal title to the relevant France Target Property by exercising its option to purchase the property (a) prior to the expiry of the finance lease by, among others, providing six months' notice to the finance company and making pre-payment for the outstanding rentals due to the Finance Company, or (b) at the expiry of the finance lease by making a nominal payment of S$1 to the finance company. Upon the exercise of the option by serving the six months' notice, the legal title will, in accordance with the finance lease arrangements, be delivered to the finance lessees.

C -49 The valuations of the investment properties were based on independent valuations carried out by licensed and experienced valuers, and the valuations were carried out using the discounted cash flow approach and market comparison approach. In relying on the valuations reports, the Manager has exercised its judgement and is satisfied that the independent valuers have appropriate professional qualifications and recent experience in the location and category of the properties being valued, and the valuation methods and estimates are reflective of the current market condition. The Manager has assessed that the carrying values of the investment properties approximate their fair values as at 31 December 2009.

10 Plant and equipment

Office equipment, Assets Motor computers under Renovation vehicles and furniture construction Total $’000 $’000 $’000 $’000 $’000

Cost

As at 1 January 2009 2,406 575 33,525 4,596 41,102 Acquisition of subsidiaries 154 169 14,231 – 14,554 Disposal of subsidiaries – (49) (3,133) – (3,182) Additions – – 6,514 55 6,569 Disposals – – (1,376) – (1,376) Written off – – (3,059) – (3,059) Reclassification 3,241 – 1,221 (4,462) – Translation difference (195) (164) (4,419) (134) (4,912) At 31 December 2009 5,606 531 43,504 55 49,696

Accumulated depreciation

As at 1 January 2009 682 152 12,631 – 13,465 Charge for the year 601 152 5,335 – 6,088 Disposal of subsidiaries – (49) (1,791) – (1,840) Disposals – – (1,252) – (1,252) Written off – – (3,059) – (3,059) Translation difference (148) (148) (4,155) – (4,451) At 31 December 2009 1,135 107 7,709 – 8,951

Carrying amount

At 1 January 2009 1,724 423 20,894 4,596 27,637

At 31 December 2009 4,471 424 35,795 55 40,745

C - 50

11 Associate

31 December 2009 $’000

Interest in an associate 3,416

Details of the associate are as follows:

Place of Effective percentage Principal incorporation held by the Group Company name activity and business 31 December 2009 % Associate of Ascott Residence Trust

East Australia Trading Investment Company (HK) Limited holding Hong Kong 40

A member firm of KPMG International is the auditor of the associate.

The Group did not receive dividends from investment in associate during the year.

The summarised financial information relating to the associate, not adjusted for the percentage ownership held by the Group, is as follows:

31 December 2009 $’000

Total assets 13,697 Total liabilities (15,568) Revenue – Loss after taxation (21)

12 Financial derivatives

31 December 2009 $’000

Financial derivative assets Interest rate caps 764

Financial derivative liabilities Interest rate swaps 14,313

C - 51

13 Deferred tax assets/(liabilities)

31 December 2009 $’000 Deferred tax assets

Unutilised tax losses 10,550 Unrealised foreign exchange loss – trade 19 Provisions and accruals 170 10,739

Deferred tax liabilities

Serviced residence properties (25,567) Unrealised foreign exchange gain – trade (818) (26,385)

Net deferred tax liabilities (15,646)

Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off current tax liabilities and when the deferred taxes relate to the same tax authority. The amounts determined after appropriate offsetting are included in the balance sheet as follows:

31 December 2009 $’000

Deferred tax assets 9,424 Deferred tax liabilities (25,070)

Deferred tax assets have not been recognised in respect of the following items because it is not probable that future taxable profit will be available against which the Group can utilise the benefits therefrom:

31 December 2009 $’000

Tax losses 10,125 Deductible temporary differences 1,590

Tax losses are subject to agreement by the tax authorities and compliance with tax regulations in the respective countries in which certain subsidiaries operate. The deductible temporary differences do not expire under the current tax legislation.

C - 52

The unrecognised tax losses are subject to expiration as follows:

31 December 2009 $’000 Expiry dates - Within 1 to 5 years 2,174 - After 5 years 7,951 10,125

14 Trade and other receivables 31 December 2009 $’000

Trade receivables 7,990 Impairment losses (168) 7,822

Non-trade amounts due from related parties 9,616 Deposits 3,530 Other receivables 14,029 Loans and receivables 34,997 Prepayments 5,906 40,903

Non-trade amounts due from related parties are unsecured, interest-free and repayable on demand.

Concentration of credit risk relating to loan and receivables is limited due to the Group’s varied tenants. These tenants are from a wide range of nationalities and are engaged in a wide spectrum of business activities. The Group’s historical experience in the collection of accounts receivables falls within the recorded allowances. Due to these factors, management believes that no additional credit risk beyond amounts provided for collection losses is inherent in the Group’s trade receivables.

C - 53

Impairment losses

The aging of loans and receivables at the reporting date is as follows:

Impairment Gross losses 31 December 31 December 2009 2009 $’000 $’000

Not past due 33,538 – Past due 0 - 30 days 1,165 – Past due 30 - 60 days 253 11 Past due more than 60 days 209 157 35,165 168

The movement in impairment losses in respect of trade receivables during the year is as follows:

31 December 2009 $’000

At 1 January 2009 222 Acquisition of subsidiaries 62 Disposal of subsidiaries (116) At 31 December 2009 168

Based on historical default rates, the Group believes that, except for those recognised, no additional impairment is necessary in respect of trade receivables not past due. These receivables relate to customers that have a good credit record with the Group.

15 Cash and cash equivalents

31 December 2009 $’000

Cash at bank and in hand 87,597 Fixed deposits with financial institutions 24,179 111,776

The weighted average effective interest rates per annum relating to cash and cash equivalents at 31 December 2009 is 5.25% per annum. Interest rates reprice at intervals of one, three and six months.

C - 54

16 Financial liabilities

31 December 2009 $’000

Non-current liabilities Secured bank loans 839,810 Medium term notes 293,730 Finance lease liabilities 33,745 1,167,285

Current liabilities Secured bank loans 19,219 Unsecured bank loans 89,856 Finance lease liabilities 3,836 112,911

1,280,196

Finance lease liabilities

The Group had obligations under finance leases that are payable as follows:

31 December 2009 Principal Interest Payments $’000 $’000 $’000 Repayable: Within 1 year 3,836 738 4,574 After 1 year but within 5 years 17,199 2,085 19,284 After 5 years 16,546 681 17,227 37,581 3,504 41,085

(a) The Group’s secured bank loans are secured on the following:

- serviced residence properties with an aggregate carrying value of $2,243,595,000;

- pledge of shares of certain subsidiaries;

- assignment of rental proceeds from the properties;

- assignment of insurance policies on the properties; and

- corporate guarantee from the Trust.

C - 55

(b) On 9 September 2009, a subsidiary, Ascott REIT MTN Pte Ltd, launched a $1.0 billion Multi- currency Medium Term Note Programme (“MTN Programme”). Under this MTN Programme, Ascott REIT MTN Pte Ltd may, subject to compliance with all relevant laws, regulations and directives, from time to time issue fixed or floating interest rate notes (the “Notes”) with aggregate principal amounts of $1.0 billion.

In 2009, Notes amounting to $294.9 million with fixed interest rate of 4.11% per annum and maturing on 10 October 2012 were issued.

Included in the bank loans is an amount of $3,335,000 relating to unamortised transaction costs. Transaction costs amortised during the year by the Group of $1,641,000, was recognised as finance costs.

Terms and debt repayment schedule

Terms and conditions of outstanding loans and borrowings are as follows:

Nominal Year of Face Carrying Currency interest rate maturity value amount % $’000 $’000 31 December 2009

Medium term notes SGD 4.11 2012 294,905 293,730 Secured fixed rate loan SGD 4.00 2011 115,600 115,447 Secured fixed rate loan USD 5.65 – 6.30 2011 28,230 28,230 Secured fixed rate loan EUR 4.02 2027 17,926 17,926 Secured floating rate loan SGD 1.57 2011 18,766 18,588 Secured floating rate loan USD 1.06 – 3.27 2011 – 2012 44,709 44,709 Secured floating rate loans AUD 5.16 – 5.53 2011 4,193 4,193 Secured floating rate loans JPY 0.93 – 2.24 2011 – 2012 209,162 207,364 Secured floating rate loans EUR 3.01 – 5.45 2012 – 2019 287,564 287,564 Secured floating rate loans GBP 5.95 – 6.90 2012 135,008 135,008 Secured finance lease EUR 2.07 2014 – 2019 37,581 37,581 Unsecured floating rate loan SGD 1.59 2010 3,115 3,115 Unsecured floating rate loan USD 1.35 2010 14,389 14,382 Unsecured floating rate loan JPY 2.03 – 2.32 2010 72,383 72,359 1,283,531 1,280,196

C - 56

17 Trade and other payables 31 December 2009 $’000

Trade payables and accrued operating expenses 37,465 Amounts due to: - associate (non-trade) 2,034 - related parties - trade 5,405 - non-trade 9,748 - the Manager 1,349 - the Trustee 53 - minority shareholder 2,747 Interest payable 5,448 Rental deposits and advance rental 17,515 81,764

Non-trade amounts due to associates and related parties are unsecured, interest-free and repayable on demand.

18 Unitholders’ funds

Foreign currency translation reserve

The foreign currency translation reserve comprises:

(a) foreign exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from the functional currency of the Trust; and

(b) the foreign exchange differences on monetary items which form part of the Group’s net investment in foreign operations, provided certain conditions are met.

Capital reserve

The subsidiaries incorporated in China are required to transfer 10.0% of their profits after taxation, as determined under the accounting principles and relevant financial regulations of China, to a general reserve until the reserve balance reaches 50.0% of the subsidiary’s registered capital. The transfer to this reserve must be made before the distribution of dividends to shareholders.

The general reserve of the subsidiary can be used to make good previous years’ losses, if any, and may be converted to paid-in capital of the subsidiary in proportion to the existing interests of equity owners, provided that the balance after such conversion is not less than 25.0% of the registered capital.

Hedging reserve

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments relating to forecast hedged transactions.

C - 57

Capital management

The Manager reviews the Group's capital structure regularly, which the Group defines as total Unitholders’ funds (excluding minority interests) and the level of distribution to Unitholders. The Group uses a combination of debt and equity to fund acquisition and asset enhancement projects.

The objectives of the Manager are to:

a. maintain a strong balance sheet by adopting and maintaining a target gearing range;

b. secure diversified funding sources from financial institutions and/or capital markets;

c. adopt a proactive interest rate management strategy to manage risks related to interest rate fluctuations; and

d. manage the foreign currency exposure through hedging, where appropriate.

The Manager seeks to maintain an optimal combination of debt and equity in order to minimise the cost of capital and maximise returns to Unitholders. The Manager also monitors the externally imposed capital requirements closely and ensures the capital structure adopted comply with the requirements.

The Group is subject to the Aggregate Leverage limit as defined in the Property Fund Guidelines of the CIS Code. The CIS Code stipulates that the total borrowings (the “Aggregate Leverage”) of a property fund should not exceed 35.0% of the fund’s Deposited Property. The Aggregate Leverage of a property fund may exceed 35.0% of the fund’s Deposited Property (up to a maximum of 60.0%) only if a credit rating of the property fund from Fitch Inc., Moody’s or Standard and Poor’s is obtained and disclosed to the public. The property fund should continue to maintain and disclose a credit rating so long as its Aggregate Leverage exceeds 35.0% of the fund’s Deposited Property.

The Group has a credit rating of Baa3 from Moody’s. The Aggregate Leverage of the Group as at 31 December 2009 was 43.4% of the Group’s Deposited Property.

For the year ended 31 December 2009, the Group has complied with all the externally imposed capital requirements.

19 Units in issue 31 December 2009 Number of Units ’000

Balance at 1 January 2009 610,815 Issue of new Units: - Equity Fund Raising 487,518 - as Manager’s fees partially paid in Units 6,201 - as Manager’s acquisition fee paid in Units 14,048 - as Manager’s divestment fee paid in Units 1,267 Balance at 31 December 2009 1,119,849

C - 58

Each unit in the Trust represents an undivided interest in the Trust. The rights and interests of Unitholders are contained in the Trust Deed and include the right to:

• One vote per Unit at Meetings of the Trust;

• Receive income and other distributions attributable to the Units held;

• Participate in the termination of the Trust by receiving a share of all net cash proceeds derived from the realisation of the assets of the Trust less any liabilities, in accordance with their proportionate interests in the Trust. However, a Unitholder has no equitable or proprietary interest in the underlying assets of the Trust and is not entitled to the transfer of any assets (or part thereof) or of any estate or interest in any asset (or part thereof) of the Trust; and

• Attend all Unitholders’ meetings. The Trustee or the Manager may (and the Manager shall at the request in writing of not less than 50 Unitholders or one-tenth in number of the Unitholders, whichever is lesser) at any time convene a meeting of Unitholders in accordance with the provisions of the Trust Deed.

The restrictions of a Unitholder include the following:

• A Unitholder’s right is limited to the right to require due administration of the Trust in accordance with the provisions of the Trust Deed; and

• A Unitholder has no right to request the Manager to redeem his Units while the Units are listed on SGX-ST.

A Unitholder’s liability is limited to the amount paid or payable for any Units in the Trust. The provisions of the Trust Deed provide that no Unitholders will be personally liable to indemnify the Trustee or any creditor of the Trustee in the event that liabilities of the Trust exceed its assets.

20 Related parties

For the purposes of these Unaudited Pro Forma Consolidated Financial Information, parties are considered to be related to the Group if the Group has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to common significant influence. Related parties may be individuals or other entities. The Manager is an indirect wholly-owned subsidiary of a substantial Unitholder of the Trust.

In the normal course of the operations of the Trust, the Manager’s management fees and the Trustee’s fees have been paid or are payable to the Manager and Trustee respectively.

During the financial year ended 31 December 2009, other than those disclosed elsewhere in the Unaudited Pro Forma Consolidated Financial Information, there were the following significant related party transactions, which were carried out in the normal course of business on arm’s length commercial terms:

C - 59

2009 $’000

Serviced residence properties management fees paid/payable to related corporations of the Manager 19,453 Acquisition fees paid/payable to the Manager 15,723 Divestment fees paid/payable to the Manager 1,524 Interest expense paid to minority interests 68 Yield protection income received/receivable from a related corporation of the Manager (472) Rental income received from related corporations of the Manager (44,514)

21 Financial risk management

Overview

The Group has exposure to the following risks from its use of financial instruments:

• credit risk • liquidity risk • market risk

This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for measuring and managing risk, and the Group’s management of capital. Further quantitative disclosures are included throughout these financial statements. There were no changes in the Group’s approach to financial risk management during the year.

Risk management framework

The Manager has overall responsibility for the establishment and oversight of the Group’s risk management framework.

Risk management is integral to the whole business of the Group. The Group has a system of controls in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risks. The Manager continually monitors the Group’s risk management process to ensure that an appropriate balance between risk and control is achieved. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities.

The Audit Committee oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

C - 60

Credit risk

Credit risk is the potential financial loss resulting from the failure of a customer or a counterparty to settle its financial and contractual obligations to the Group as and when they fall due.

The Manager has established credit limits for customers and monitors their balances on an ongoing basis. Credit evaluations are performed by the Serviced Residence Management Companies before lease agreements are entered into with customers. Cash and fixed deposits are placed with financial institutions which are regulated. Transactions involving derivative financial instruments are allowed only with counterparties that are of high quality.

The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. The main component of this allowance is a specific loss component that relates to individually significant exposures.

The maximum exposure to credit risk for loans and receivables at the reporting date by geographic region was: 31 December 2009 $’000

Singapore 4,178 Australia 248 China 9,724 Indonesia 2,346 Japan 1,074 Philippines 5,930 Vietnam 3,002 Europe 8,663 35,165

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

The Manager monitors and maintains a level of cash and cash equivalents deemed adequate by management to finance the Group’s operations and to mitigate the effects of fluctuations in cash flows. Typically the Group ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 90 days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

As at 31 December 2009, the Group has unutilised credit facilities of approximately $82 million expiring between January 2010 and February 2011, that can be drawn down to meet short-term financing needs.

In addition, the Group has launched a $1.0 billion MTN Programme expiring in October 2012, of which $294.9 million has been assumed to be issued as at 31 December 2009.

C - 61

The following are the contractual maturities of financial liabilities, including interest payments and excluding the impact of netting agreements:

------Cash flows------Carrying Contractual Within amount cash flows Within 1 year 1 to 5 years $’000 $’000 $’000 $’000 31 December 2009

Non-derivative financial liabilities

Floating rate loans 787,282 (808,489) (114,118) (694,371) Fixed rate loans 455,333 (523,567) (19,091) (504,476) Finance lease 37,581 (41,085) (4,574) (36,511) Trade and other payables 81,764 (81,764) (81,764) – 1,361,960 (1,454,905) (219,547) (1,235,358)

Derivative financial liabilities

Interest rate swaps: - outflow 14,313 (30,165) (6,956) (23,209) 14,313 (30,165) (6,956) (23,209)

1,376,273 (1,485,070) (226,503) (1,258,567)

It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s income and its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk. Market risk is managed through established investment policies and guidelines. These policies and guidelines are reviewed regularly taking into consideration changes in the overall market environment.

The Group buys and sells derivatives, and also incurs financial liabilities, in order to manage market risks. Generally the Group seeks to apply hedge accounting in order to manage volatility in total return.

Foreign currency risk

The Group has exposures to foreign currency risks as a result of its operations in several countries. The currencies giving rise to this risk are primarily Australian Dollar, Chinese Renminbi, Indonesia Rupiah, Japanese Yen, Philippines Peso, US Dollar and Vietnamese Dong.

The Manager manages the foreign currency risks associated with the capital values of the overseas assets and will as far as possible adopt a natural hedge strategy by borrowing in the same currency as the underlying assets.

C - 62

The Group’s exposures to foreign currencies risk were as follows based on notional amounts:

Singapore Australian Chinese Hong Kong Indonesia Japanese Philippines Vietnamese Dollar Dollar Renminbi Dollar Rupiah Yen Peso US Dollar Dong $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

31 December 2009

Trade and other receivables – 17,434 83 – 1,666 79,774 2,354 157,510 863 Cash and cash equivalents – – – – 539 303 – 6,680 22,940 Trade and other payables (30,824) (187) – (14,008) (5,964) (11) – (1,618) (4,037) Financial liabilities (18,588) – – – – (85,483) – (44,024) – (49,412) 17,247 83 (14,008) (3,759) (5,417) 2,354 118,548 19,766

Results of the analysis as presented in the above table represent an aggregation of the effects on each of the Group entities’ balance sheet measured in the respective functional currencies, translated into Singapore dollars at the exchange rate at the balance sheet date for presentation purposes.

C -63

Sensitivity analysis

The following table indicates the approximate change in the Group’s Unaudited Pro Forma Consolidated Statement of Total Return and Unitholders’ funds in response to a 10% increase in the foreign exchange rates to which the Group has significant exposure at the balance sheet date. The sensitivity analysis includes balances in group companies where the denomination of the balances is in a currency other than the functional currencies of the lender or the borrower.

31 December 2009 Unaudited pro forma statement Unitholders’ of total return funds $’000 $’000

Singapore Dollar (1) (1,881) – Australian Dollar (2) 429 – Chinese Renminbi (2) 8 – Hong Kong Dollar (2) (1,401) – Indonesian Rupiah (3) (376) – Japanese Yen (2) (542) – Philippines Peso (2) 235 – US Dollar (4) 8,858 – Vietnamese Dong (3) 1,976 –

(1) as compared to functional currency of Australian Dollar. (2) as compared to functional currency of Singapore Dollar. (3) as compared to functional currency of US Dollar. (4) as compared to functional currencies of Singapore Dollar, Chinese Renminbi and Philippines Peso.

A weakening of Singapore dollar against the above currencies at 31 December 2009 would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.

Interest rate risk

The Group’s exposure to changes in interest rates relates primarily to interest-earning financial assets and interest-bearing financial liabilities. Interest rate risk is managed by the Manager on an ongoing basis with the primary objective of limiting the extent to which net interest expense could be affected by adverse movements in interest rates. Generally, the interest rate exposure is managed through the use of interest rate swaps and/or fixed rate borrowings.

Interest rate swaps, denominated in Japanese Yen, have been entered into to limit the Group’s exposure to changes in interest rates on its JPY bank loans which bear interest at LIBOR plus margin. The interest rate swaps mature in July 2011 and April 2012 matching the maturity of the related loans.

C - 64

As at 31 December 2009, the Group has interest rate swaps with notional contract amounts of JPY12.3 billion, EUR 48.7 million and GBP 52.5 million which pays fixed interest rates of 1.26% to 1.38%, 1.81% to 4.10% and 5.04% to 5.50% respectively and receives a variable rate equal to the LIBOR on the notional amounts. The Group classifies these interest rate swaps as cash flow hedges. The secured loan and interest rate swaps have the same terms and conditions. The net fair value of interest rate swaps as at 31 December 2009 is a net liability of $14,313,000.

Interest rate caps, denominated in US Dollars and Euro, have been entered into to limit the Group’s exposure to changes in interest rates on its US Dollars and Euro bank loans which bear interest at LIBOR plus margin and LIBOR respectively. The interest rate caps for US Dollars and Euro mature in April 2012 and September 2014 respectively, matching the maturity of the related loans. The net fair value of the interest rate caps as at 31 December 2009 is a net asset of $764,000.

As at 31 December 2009, the Group has an interest rate cap with knock out features for a notional contract amount of US$20,093,000 whereby it receive payments when the interest rate exceeds the agreed strike price of 2.50% but falls within 5.00%. When interest rate exceeds 5.00%, no payment will be received. The secured loan and interest rate cap have the same terms and conditions.

At the reporting date, the interest rate profile of the interest-bearing financial instruments was as follows:

Carrying amount 31 December 2009 $’000 Fixed rate instruments Financial liabilities (455,333) Finance lease (37,581)

Variable rate instruments Financial liabilities (787,282) Interest rate swaps (14,313) Interest rate cap 764

Fair value sensitivity analysis for fixed rate instruments

The Group does not account for any fixed rate financial liabilities at fair value through profit or loss, and the Group does not designate derivatives (interest rate swaps) as hedging instruments under a fair value hedge accounting model. Therefore a change in interest rates at the reporting date would not affect Unaudited Pro Forma Consolidated Statement of Total Return.

C - 65

Cash flow sensitivity analysis for variable rate instruments

A change of 100 basis point in interest rate at the reporting date would increase/(decrease) Unitholders’ funds and Unaudited Pro Forma Consolidated Statement of Total Return by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.

Unaudited Pro Forma Consolidated Statement of Total Return Unitholders’ funds 100 bp 100 bp 100 bp 100 bp increase decrease increase decrease $’000 $’000 $’000 $’000

31 December 2009

Variable rate financial liabilities (7,959) 7,959 – – Interest rate swaps 3,686 (3,686) 1,025 (1,025) Cash flow sensitivity (net) (4,273) 4,273 1,025 (1,025)

22 Operating segments

Segment information is presented in respect of the Group’s geographical segments. The operations of each of the Group’s geographical segments are separately managed because of the different economic environments in which they operate in. For each of the reportable segments, the CEO of the Manager reviews internal management reports on at least a monthly basis. This forms the basis of identifying the operating segments of the Group.

Performance measurement based on segment profit before income tax and non-financial assets as well as financial assets attributable to each segment is used as the Manager believes that such information is most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.

Segment results, assets and liabilities include terms directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly income- earning assets and revenue, interest-bearing borrowings and expenses, related assets and expenses. Information regarding the Group’s reportable segments is presented in the tables below.

C - 66

Information about reportable segments

The Group’s business is investing in serviced residences and rental housing properties.

Singapore Australia Belgium China Indonesia France Germany Subtotal $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 31 December 2009

Gross rental income 30,410 6,285 12,614 20,029 16,733 42,196 2,225 130,492 Other income 3,225 1,162 913 503 4,271 547 – 10,621 Gross revenue 33,635 7,447 13,527 20,532 21,004 42,743 2,225 141,113 Direct expenses (17,438) (5,691) (9,598) (11,710) (13,024) (6,798) (579) (64,838) Segment gross profit 16,197 1,756 3,929 8,822 7,980 35,945 1,646 76,275

Change in fair value of serviced residence properties (6,098) (3,475) (4,939) (5,953) (3,324) (41,246) (1,153) (66,188)

C -67

United Japan Philippines Spain Kingdom Vietnam Subtotal Grand total $’000 $’000 $’000 $’000 $’000 $’000 $’000 31 December 2009

Gross rental income 17,605 25,898 6,074 38,986 42,968 131,531 262,023 Other income 356 3,023 2,587(1) 513 3,416(2) 9,895 20,516 Gross revenue 17,961 28,921 8,661 39,499 46,384 141,426 282,539 Direct expenses (7,007) (16,584) (4,891) (17,784) (18,225) (64,491) (129,329) Segment gross profit 10,954 12,337 3,770 21,715 28,159 76,935 153,210

Change in fair value of serviced residence properties (22,199) 3,580 (4,416) (40,603) 4,685 (58,953) (125,141)

C -68 Share of loss of associate (net of tax) (8) Finance income 625 Finance costs (49,317) Profit from divestment 102,440 Unallocated net expense (19,554) Reportable segment profit before income tax 62,255 Income tax expense (31,443) Total profit for the year after income tax 30,812

(1) Included in the gross revenue for Spain is an amount of $1,046,000 relating to the shortfall in net operating profit guarantee amount.

(2) Included in the gross revenue for Vietnam is an amount of $472,000 relating to yield protection income received/receivable by Trust, allocated from Singapore.

Geographical segments

Singapore Australia Belgium China Indonesia France Germany Subtotal $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 31 December 2009

Assets and liabilities

Reportable segment assets 538,666 49,420 61,724 200,009 100,591 621,762 73,397 1,645,569

Reportable segment liabilities 528,345 23,115 28,528 36,067 17,896 283,430 20,414 937,795

C -69

United Japan Philippines Spain Kingdom Vietnam Subtotal Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 31 December 2009

Assets and liabilities

Reportable segment assets 306,960 133,005 69,424 470,689 323,586 1,303,664 2,949,233

Reportable segment liabilities 203,348 12,903 40,369 154,156 62,534 473,310 1,411,105

C -70

23 Determination of fair values

A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

(i) Financial derivatives

The fair value of cross currency swap is based on broker quote. The quote is tested for reasonableness by discounting the difference between the contractual forward price and the current forward price for the residual period to maturity of the contract using market rates for a similar instrument at the measurement date.

The fair values of interest rate swaps and interest rate cap are based on broker quotes. These quotes are tested for reasonableness by discounting estimated future cash flows based on terms and maturity of each contract and using market interest rates for a similar financial instrument at the measurement date.

(ii) Non-derivative financial liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.

(iii) Other financial assets and liabilities

The notional amounts of financial assets and liabilities with a maturity of less than one year (including trade and other receivables, cash and cash equivalents, and trade and other payables) are assumed to approximate their fair values because of the short period to maturity. All other financial assets and liabilities are discounted to determine their fair values.

Interest rates used for determining fair value

The interest rates used to discount estimated cash flows, when applicable, are based on the government yield curve at the reporting date plus an adequate credit spread, and were as follows:

31 December 2009 %

Loans and borrowings 0.93 to 6.30 Financial derivatives 0.26 to 0.99

C - 71

Fair values versus carrying amounts

The carrying amounts of the Group’s financial instruments carried at cost or amortised cost are not materially different from their fair values as at 31 December 2009 except as follows:

31 December 2009 Carrying amount Fair value Note $’000 $’000 Group

Financial liabilities Secured bank loans 16 859,029 871,854 Unsecured bank loans 16 89,856 89,856 Medium term notes 16 293,730 294,940 Finance lease liabilities 16 37,581 37,581 1,280,196 1,294,231

Fair value hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Level 1 Level 2 Level 3 Total $’000 $’000 $’000 $’000 31 December 2009

Derivative financial assets – 764 – 764

Derivative financial liabilities – (14,313) – (14,313)

– (13,549) – (13,549)

C - 72

24 Manager’s fees and Trustee’s fees

The Group has entered into several service agreements in relation to management of the Trust and its property operations. The fee structures for these services are as follows:

(i) Trustee’s fees

Pursuant to the Trust Deed, the Trustee’s fee is charged on a scaled basis of up to 0.1% per annum of the Deposited Property, subject to a minimum of $10,000 per month, excluding out-of-pocket expenses and GST. The Trustee is also entitled to reimbursement of expenses incurred in the performance of its duties under the Trust Deed. The Trustee’s fees are payable monthly in arrears.

(ii) Manager’s fees

Management fees

The Manager is entitled under the Trust Deed to the following management fees:

(a) a base fee of 0.3% per annum of the property values; and

(b) an annual performance fee of:

• base performance fee of 4.0% per annum of the Group’s share of gross profit for each financial year; and

• in the event that the Group’s share of gross profit increases by more than 6.0% annually, an outperformance fee of 1.0% of the difference between the Group’s share of that financial year’s gross profit and 106% of the Group’s share of the preceding year’s gross profit.

The management fees payable to the Manager for the existing properties will be satisfied in the form of 50% cash and 50% Units for the financial year ended 31 December 2009. For the Target Properties, the management fees payable to the Manager will be satisfied 100% in the form of Units. Changes to the subsequent satisfaction of management fees, if any, will be announced. The portion of management fees payable in cash shall be payable monthly in arrears and the portion of the management fees payable in the form of Units shall be payable quarterly in arrears. When management fees are payable in Units, the issue prices will be determined based on the volume weighted average traded price per unit for all trades done on SGX-ST in the ordinary course of trading for 5 business days immediately preceding the respective date of issue of the new units, or where the Manager believes such market price is not a fair reflection of the market price of a Unit, such amount as determined by the Trustee at its discretion (after consultation with a stockbroker appointed by the Trustee) upon request by the Manager to review the market price of a Unit, as being the fair market price of a Unit.

C - 73

Acquisition fee

The Manager is entitled to receive the following acquisition fees:

(a) an acquisition fee of 1% of the Enterprise Value of any real estate or real estate related asset acquired directly or indirectly by the Trust, prorated if applicable to the proportion of the Trust’s interest; and

(b) in the event that there is payment to third party agents or brokers in connection with the acquisition, such payment shall be paid out of the Deposited Property, provided that the Manager shall charge an acquisition fee of 0.5% instead of 1.0%.

Where assets acquired by the Trust are shares in a company whose primary purpose is to hold/own real estate (directly or indirectly), Enterprise Value shall mean the sum of the equity value and the total debt attributable to the shares being acquired by the Trust and where the asset acquired by the Trust is a property, Enterprise Value shall mean the value of the property.

The acquisition fee is payable as soon as practicable after the completion of the relevant acquisition. The Manager may opt to receive such acquisition fee in the form of cash or Units or a combination of cash and Units as it may determine. Units representing the acquisition fee will be issued at an issue price computed on a similar basis as management fees.

In the event that the Manager receives an acquisition fee in connection with a transaction with a related party, any such acquisition fee shall be paid in the form of Units to be issued by the Trust at the market price.

Divestment fee

The Manager is entitled to receive a divestment fee of 0.5% of the Enterprise Value of any real estate or real estate related asset disposed directly or indirectly by the Trust, prorated if applicable to the proportion of the Trust’s interest.

The divestment fee is payable to the Manager in the form of cash and as soon as practicable after completion of the relevant divestment. In the event that the Manager receives a divestment fee in connection with a transaction with a related party, any such divestment fee shall be paid in the form of Units to be issued by the Trust at the market price.

(iii) Fees under serviced residence management agreements

Each property (with the exception of properties located in United Kingdom, Belgium and Spain) is charged basic management fees of between 2.0% and 3.0% per annum of the total revenue of each property and incentive management fees of up to 10.0% per annum of gross operating profit of each property in respect of property management services. The serviced residence management fee for each property is agreed between the Group and the relevant serviced residence management company.

C - 74

Each of the properties located in United Kingdom, Belgium and Spain is charged basic management fees of 3.0% per annum of the total revenue and 6% per annum of net operating profit (“NOP”). Each of these properties is charged incentive management fees of 50% of any excess NOP achieved above the NOP of each property agreed with the relevant serviced residence management company and licence fee at 1% per annum of the total revenue of each property.

25 Financial ratios 31 December 2009 %

Ratio of expenses (1) to average net asset value (2) - including performance component of Manager’s management fees 1.02 - excluding performance component of Manager’s management fees 0.65 Portfolio turnover rate (3) –

Notes:

(1) Expenses are based on the Statement of Total Return as if the Transactions had been completed on 1 January 2009 and the weighted average net assets are based on the Balance Sheet as if the Transactions had been completed on 31 December 2009.

(2) The annualised ratio is computed in accordance with guidelines of Investment Management Association of Singapore. The expenses used in the computation relate to expenses at the Group level, excluding property related expenses, borrowing costs and foreign exchange gains/(losses).

(3) The annualised ratio is computed based on the lesser of purchases or sales of underlying serviced residence properties of the Group expressed as a percentage of weighted average net asset value.

C - 75

26 Commitments

Non-cancellable operating lease rentals are receivable as follows:

31 December 2009 $’000

Within 1 year 43,562 After 1 year but within 5 years 187,907 After 5 years 186,862 418,331

The above operating lease receivables comprise amounts receivable under the master lease arrangements.

27 Subsequent events

On 6 August 2010, a subsidiary of the Trust, P.T. Indonesia America Housing, entered into a sale and purchase agreement with PT Granhaindo Kreasi Abadi to sell its property, Country Woods, for a total consideration of US$24.18 million (equivalent to $33.90 million), subject to satisfaction of conditions precedent. The completion of the sale is expected to take place in the fourth quarter of 2010.

28 Subsidiaries

Details of the subsidiaries are as follows:

Effective equity Country of interest held by Name of subsidiaries incorporation the Group 31 December 2009 % Direct subsidiaries

Ascott Manila Pte. Ltd. Singapore 100 Ascott REIT (Europe) Pte Ltd (1) Singapore 100 Ascott REIT MTN Pte. Ltd. Singapore 100 Ascott Residences (Australia) Holdings Pte. Ltd. Singapore 100 Ascott Residences Pte Ltd Singapore 100 Burton Engineering Pte Ltd Singapore 100 East Australia Trading Company (S) Pte Ltd Singapore 100 Glenwood Properties Pte Ltd Singapore 100 Javana Pte Ltd Singapore 100

C - 76

Effective equity Country of interest held by Name of subsidiaries incorporation the Group 31 December 2009 % Direct subsidiaries (cont’d)

Smooth Runner Co., Ltd Hong Kong 100 Somerset Azabu East (S) Pte. Ltd. Singapore 100 Somerset Azabu East Investment (S) Pte. Ltd. Singapore 100 Somerset FG Pte. Ltd. Singapore 100 Somerset Gordon Heights (S) Pte. Ltd. Singapore 100 Somerset Grand Citra (S) Pte. Ltd. Singapore 100 Somerset Hoa Binh (S) Pte. Ltd. Singapore 100 Somerset Philippines (S) Pte. Ltd. Singapore 100 Somerset Roppongi (Japan) Pte. Ltd. Singapore 100 Somerset Roppongi (S) Pte. Ltd. Singapore 100 The Ascott (Vietnam) Investments Pte Ltd Singapore 100 Zenith Residences Tokyo (S) Pte. Ltd. Singapore 100 Zenith Residences Tokyo Investment (S) Pte. Ltd. Singapore 100

Indirect subsidiaries

Subsidiary of Ascott Manila Pte. Ltd.

Ascott Makati, Inc Philippines 100

Subsidiaries of Ascott Residences Pte Ltd

PT Indonesia America Housing Indonesia 100 Mekong-Hacota Joint Venture Company Ltd Vietnam 69

Subsidiary of Burton Engineering Pte Ltd

Hanoi Tower Center Company Ltd Vietnam 76

C - 77

Effective equity Country of interest held by Name of subsidiaries incorporation the Group 31 December 2009 %

Subsidiary of East Australia Trading Company (S) Pte Ltd

Saigon Office and Serviced Apartment Co. Limited Vietnam 67

Subsidiary of Glenwood Properties Pte Ltd

Shanghai Xin Wei Property Development Co., Ltd China 100

Subsidiary of Javana Pte Ltd

PT Bumi Perkasa Andhika Indonesia 99

Subsidiary of Smooth Runner Co., Ltd

Tianjin Consco Property Development Co., Ltd China 100

Subsidiary of Somerset Azabu East (S) Pte. Ltd.

Somerset Azabu East Tokutei Mokuteki Kaisha Japan 100

Subsidiaries of Somerset Gordon Heights (S) Pte. Ltd.

Somerset Gordon Heights (Melbourne) Pty Ltd (as trustee of Somerset Gordon Heights (Melbourne) Unit Trust) Australia 100

Somerset Gordon Heights (Melbourne) Unit Trust Australia 100

Subsidiary of Somerset Grand Citra (S) Pte. Ltd.

PT Ciputra Liang Court Indonesia 57

C - 78

Effective equity Country of interest held by Name of subsidiaries incorporation the Group 31 December 2009 %

Subsidiaries of Somerset Philippines (S) Pte. Ltd.

Ascott Hospitality Holdings Philippines, Inc Philippines 100

SN Resources, Inc Philippines 97

SQ Resources, Inc Philippines 63

Subsidiary of Somerset Roppongi (Japan) Pte. Ltd.

Somerset Roppongi Tokutei Mokuteki Kaisha Japan 100

Subsidiaries of Ascott Residences (Australia) Holdings Pte. Ltd.

Somerset St Georges Terrace (Perth) Pte. Ltd. Singapore 100

Somerset St Georges Terrace (Perth) Pty Ltd (as trustee of Somerset St Georges Terrace (Perth) Unit Trust) Australia 100

Somerset St Georges Terrace (Perth) Unit Trust Australia 100

Subsidiary of The Ascott (Vietnam) Investments Pte Ltd

West Lake Development Company Limited Vietnam 70

Subsidiary of Zenith Residences Tokyo (S) Pte. Ltd.

Zenith Residences Tokyo Tokutei Mokuteki Kaisha Japan 100

Subsidiary of Somerset Hoa Binh (S) Pte. Ltd.

Somerset Hoa Binh Joint Venture Company Limited Vietnam 90

C - 79

Effective equity Country of interest held by Name of subsidiaries incorporation the Group 31 December 2009 % Subsidiaries of Ascott REIT (Europe) Pte Ltd(1)

The Ascott (Europe) NV Netherlands 100

Ascott REIT (Jersey) Limited(2) Jersey 100

Subsidiary of Ascott REIT (Jersey) Limited (2)

Citadines Holborn Cl Limited Jersey 100

Direct/ indirect subsidiaries of The Ascott (Europe) NV

Eurorésidence 1 SARL France 100

Oriville France 100

SCI Austerlitz France 100

SCI Cannes Carnot France 100

SCI Marseille France 100

SCI Montparnasse France 100

SCI Montpellier France 100

SCI Citadines Paris Louvre France 100

SCI République France 100

SCI Grenelle France 100

SCI Italie France 100

SCI Lyon France 100

SCI Sodi France 100

SNC Rachel France 100

Place de Metz France 100

C - 80

Effective equity Country of interest held by Name of subsidiaries incorporation the Group 31 December 2009 %

Reo St Didier France 100

Résidence des 2 Gares France 100

Societe-Europeenne d’Investissements Immobiliers et de France 100 Gestion - Eurimeg S.A.

FBM Belgique SPRL Brussels 100

Citagrep Limited United Kingdom 100

FBM London Limited United Kingdom 100

Citador Olivaer Platz GmbH & Co. KG Germany 100

Citador Verwaltungsgesellschaft mbH Germany 100

Citadines Munich Arnulfpark GmbH & Co. KG Germany 99

Citadines Munich Arnulfpark Germany 100 Verwaltungsgesellschaft mbH

Citadines Arnulfpark Munich (Netherlands) BV Netherlands 100

Immobilière Toisor Brussels 100

Eurimeg Espana, S.A. Spain 100

(1) Investment holding company incorporated on 23 August 2010 to hold the newly acquired subsidiaries.

(2) Investment holding company incorporated on 1 September 2010 to hold a newly acquired subsidiary.

C - 81 This page has been intentionally left blank. APPENDIX D

INDEPENDENT ACCOUNTANTS’ REPORT ON THE UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION

The Board of Directors Ascott Residence Trust Management Limited (in its capacity as Manager of Ascott Residence Trust) 8 Shenton Way #13-01 Singapore 068811

DBS Trustee Limited (in its capacity as Trustee of Ascott Residence Trust) 6 Shenton Way #14-01 DBS Building Tower One Singapore 068809 13 September 2010

Dear Sirs Letter from the Independent Accountants on the Unaudited Pro Forma Consolidated Financial Information This letter has been prepared for inclusion in the Offer Information Statement (the “OIS”) to be issued in connection with the proposed issue of new units in Ascott Residence Trust (“ART”) to acquire serviced residence properties in Singapore, Vietnam and Europe, together with the divestment of a serviced residence property in the People’s Republic of China. We report on the unaudited pro forma consolidated financial information as set out on pages C-1 to C-81 of the OIS which has been prepared for illustrative purposes only and based on certain assumptions after making certain adjustments to show: (I) the unaudited pro forma consolidated statement of total return for FY2009, which has been prepared on the basis that the following transactions have occurred on 1 January 2009 or on the same dates that each of the serviced residence properties were acquired by The Ascott Limited (“TAL”) and its subsidiaries, whichever is later, pursuant to the terms set out in the OIS: (a) the acquisition by the Trust of: (i) Citadines Singapore Mount Sophia Property from Citadines Singapore Mount Sophia Pte. Ltd., a Singapore-incorporated company and wholly-owned subsidiary of TAL; (ii) a 100.0 percent interest in Somerset Hoa Binh (S) Pte. Ltd., a Singapore incorporated company from The Ascott Holdings Limited, a wholly-owned subsidiary of TAL. Somerset Hoa Binh holds a 90.0 percent interest in Somerset Hoa Binh Joint Venture Company Limited, which in turn owns Somerset Hoa Binh, Hanoi;

D-1 (iii) a 100.0 percent interest in The Ascott Europe NV (“Ascott Netherlands”), a Netherlands incorporated entity from The Ascott (Europe) Pte Ltd, a wholly-owned subsidiary of TAL. Ascott Netherlands holds the following effective interest in 23 subsidiaries that own certain serviced residence properties or interest in serviced residence properties: Effective equity interest held by Ascott Property or interest in Subsidiary of Ascott Netherlands property held by the Netherlands % subsidiary Résidence des 2 Gares 100.0 Citadines Lille Centre Place de Metz 100.0 Citadines Grenoble SCI Citadines Paris Louvre 100.0 Citadines Paris Louvre Reo St Didier 100.0 Citadines Paris Trocadéro SCI Lyon 100.0 Citadines Lyon Presqu’île SCI Résidence Italie 100.0 Citadines Paris Place d’ltalie SNC Rachel 100.0 Citadines Paris Montmartre SCI Grenelle 100.0 Citadines Paris Tour Eiffel SCI Montpellier 100.0 Citadines Montpellier Antigone SCI Marseille 100.0 Citadines Marseille Castellane SCI Austerlitz 100.0 Citadines Paris Austerlitz SCI République 100.0 Citadines Paris Voltaire République SCI Montparnasse 100.0 Citadines Paris Maine-Montparnasse Oriville 100.0 Citadines Marseille Prado Chanot Citadines Paris Les Halles SCI Cannes 100.0 Citadines Cannes Carnot SCI Sodi 100.0 Citadines Paris Didot Alésia FBM London Limited 100.0 Citadines London Barbican Citadines London Trafalgar Square FBM Belgique SPRL 100.0 Citadines Bruxelles Sainte-Catherine Citador Olivaer Platz GmbH & Co. 100.0 Citadines Berlin Kurfu¨rstendamm KG Citadines Munich Arnulfpark 99.0 Citadines Munich Arnulfpark GmbH & Co. KG Immobilière Toisor SA 100.0 Citadines Bruxelles Toison d’Or Citagrep Limited 100.0 Citadines London South Kensington Eurimeg Espana, S.A. 100.0 Citadines Barcelona Ramblas (iv) a 100.0 percent interest in Citadines Holborn Cl Limited, a Jersey incorporated company, which owns Citadines London Holborn-Covent Garden from Ascott (Jersey) Limited, which is a wholly-owned subsidiary of TAL. The acquisitions as described above are collectively referred to as the “Acquisitions”. (b) the divestment by the Trust of its 100.0 percent interest in Hemliner Pte Ltd, a Singapore incorporated company, which owns a 100.0 percent interest in Ascott Beijing to Ascott Investments Pte. Ltd., a wholly-owned subsidiary of TAL. (c) the proposed issue of 487,518,000 new units at the issue price of $1.15 per Unit, net of issue costs of $17.7 million and proposed additional borrowings in order to, inter alia, fund the Acquisitions and associated costs. (collectively, the “Transactions”) (II) the unaudited pro forma consolidated balance sheet as at 31 December 2009, which has been prepared to provide information on the financial position of the Group, had the Transactions been completed on 31 December 2009, pursuant to the terms set out in the OIS; and (III) the unaudited pro forma consolidated statement of cash flows for FY2009, which has been prepared to provide information on the cash flows of the Group, had the Transactions been

D-2 completed on 1 January 2009 or on the same dates that each of the serviced residence properties were acquired by TAL and its subsidiaries, whichever is later, pursuant to the terms set out in the OIS. The objective of the Unaudited Pro Forma Consolidated Financial Information of the Group is to show what the total return, financial position and cash flows might have been had the Group completed the Transactions at earlier dates, as described above. However, the Unaudited Pro Forma Consolidated Financial Information of the Group is not necessarily indicative of the total return, the financial position or cash flows that would have been attained had the Group actually completed the Transactions earlier. The Unaudited Pro Forma Consolidated Financial Information has been prepared for illustrative purpose only and, because of its nature, may not give a true picture of the Group’s actual total return, financial position or cash flows. Our procedures on the unaudited pro forma consolidated financial statements have not been carried out in accordance with attestation standards and practices generally accepted in the United States of America or other jurisdictions, other than in Singapore, and accordingly, should not be relied upon as if they had not been carried out in accordance with those standards. The unaudited pro forma consolidated financial information is the responsibility of Ascott Residence Trust Management Limited (the “Manager”). Our responsibility is to express an opinion on the unaudited pro forma consolidated financial information based on our work. We carried out procedures in accordance with Singapore Statement of Auditing Practice (“SSAP”) 24 “Auditors and Public Offering Documents”. Our work, which involved no independent examination of the underlying financial information, consisted primarily of: (a) comparing the unaudited pro forma consolidated financial information to the audited financial statements of Citadines Singapore Mount Sophia Pte. Ltd. and Hemliner Pte Ltd, restated financial statements of Somerset Hoa Binh Joint Venture Company Limited, Résidence des 2 Gares, Place de Metz, SCI Citadines Paris Louvre, Oriville, Citador Olivaer Platz GmbH & Co. KG, Citadines Munich Arnulfpark GmbH & Co. KG, Citadines Holborn Cl Limited, FBM London Limited, FBM Belgique SPRL, Immobilière Toisor and Hemliner (Beijing) Real Estate Co., Ltd and unaudited management financial information of Reo St Didier, SCI Lyon, SCI Residence Italie, SNC Rachel, SCI Grenelle, SCI Montpellier, SCI Marseille, SCI Austerlitz, SCI Republique, SCI Montparnasse, SCI Cannes, SCI Sodi, Citagrep Limited and Eurimeg Espana, S.A. for the financial year ended 31 December 2009; and (b) considering the evidence supporting the adjustments and discussing the unaudited pro forma consolidated financial information with the Manager. In our opinion: (a) the unaudited pro forma consolidated financial information has been properly prepared from the audited financial statements of the Group, Citadines Singapore Mount Sophia Pte. Ltd. and Hemliner Pte Ltd, restated financial statements of Somerset Hoa Binh Joint Venture Company Limited, Résidence des 2 Gares, Place de Metz, SCI Citadines Paris Louvre, Oriville, Citador Olivaer Platz GmbH & Co. KG, Citadines Munich Arnulfpark GmbH & Co. KG, Citadines Holborn Cl Limited, FBM London Limited, FBM Belgique SPRL, Immobiliére Toisor and Hemliner (Beijing) Real Estate Co., Ltd and unaudited management financial information of Reo St Didier, SCI Lyon, SCI Residence Italie, SNC Rachel, SCI Grenelle, SCI Montpellier, SCI Marseille, SCI Austerlitz, SCI République, SCI Montparnasse, SCI Cannes, SCI Sodi, Citagrep Limited and Eurimeg Espana, S.A. for the financial year ended 31 December 2009 and the available financial information in respect of the Transactions and is presented in accordance with the relevant presentation principles of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore; (b) the unaudited pro forma consolidated financial information has been properly prepared in a manner consistent with both the format of the financial statements and the accounting policies of the Group; (c) each material adjustment to the information used in the preparation of the unaudited pro forma consolidated financial information is appropriate for the purpose of preparing such financial information and in accordance with SSAP 24; and

D-3 (d) the unaudited pro forma consolidated financial information has been properly prepared on the basis of the assumptions set out on pages C-7 to C-10 after making the adjustments described on pages C-7 to C-10.

Yours faithfully

KPMG LLP Public Accountants and Certified Public Accountants (Partner-in-charge: Leong Kok Keong) Singapore

D-4 APPENDIX E

PROFIT FORECAST AND PROFIT PROJECTION Statements contained in this Profit Forecast and Profit Projection section that are not historical facts may be forward-looking statements. Such statements are based on the assumptions set forth in this section and are subject to certain risks and uncertainties which could cause actual results to differ materially from those forecasted. Under no circumstances should the inclusion of such information herein be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions by the Ascott REIT, the Manager, the Trustee, TAL or any other person, nor that these results will be achieved or are likely to be achieved. See “Forward-looking Statements” and “Risk Factors”. Recipients of this Document and all prospective investors in the Units are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this document.

Cautionary Language The Manager has prepared for inclusion in this Offer Information Statement the Profit Forecast and Profit Projection for the period 1 October 2010 through 31 December 2010 and the year ending 31 December 2011 respectively. Ascott REIT does not publish its business plans or strategies and does not make external disclosures of its anticipated financial position or results of operations and does not intend to make public statements in the future as to its projected Gross Revenue, direct expenses, Gross Profit, EBITDA yield or other financial information. There is no present intention to update this information or to publish such information in the future. This information was not prepared with a view toward compliance with published guidelines of the American Institute of Certified Public Accountants (“AICPA”) or any other accounting body regarding forecasts. This information is necessarily based upon a number of estimates and assumptions that, while presented with numerical specificity and considered reasonable by the Manager, are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Manager, and upon assumptions with respect to future business decisions which are subject to change. The Profit Forecast and Profit Projection also assumes that the Transactionswill be completed, among other important assumptions such as the success of Ascott REIT’s business strategy. The success of the strategy is subject to uncertainties and contingencies beyond the Manager’s and Ascott REIT’s control and no assurance can be given that Ascott REIT’s business strategy will be effective or that the anticipated benefits from its strategies or the Transactions, if completed, will be realised in the periods for which the Profit Forecast and Profit Projection have been prepared or otherwise. Accordingly, there can be no assurance that these results will be realised. The Profit Forecast and Profit Projection will vary from actual results, and these variations may be material. While the Manager believes that the Profit Forecast and Profit Projection were prepared on a reasonable basis, reflect the best currently available estimates and judgments, and present, to the best of its knowledge and belief, the expected course of action and the expected future financial performance of Ascott REIT, this information is not fact and should not be relied upon as being necessarily indicative of future results. The inclusion of such information herein should not be regarded as a representation by the Ascott REIT Manager, the Trustee, TAL or any other person that these results will be achieved. Readers are cautioned not to place undue reliance on the Profit Forecast and Profit Projection. Your attention is drawn to the developments and uncertainties affecting Ascott REIT’s business that are discussed throughout this document. In addition, your attention is drawn to the section “Risk Factors” in this Offer Information Statement for a discussion of some of the many factors that could materially affect Ascott REIT’s financial condition, results of operations, business and prospects. The following Profit Forecast and Profit Projection were prepared by the Manager based on the basis of accounting policies consistent with those adopted for the purposes of the financial statements of Ascott REIT for the year ended 31 December 2009.

E-1 The table below sets forth Ascott REIT’s forecast Consolidated Statements of Total Return for the Forecast Period 2010 (being the period from 1 October 2010 to 31 December 2010) and the Projection Year 2011 (full year from 1 January 2011 to 31 December 2011). The Profit Forecast and Profit Projection are based on the assumptions set out below. The Profit Forecast and Profit Projection should be read together with the reports set out in Appendix F, “Independent Accountants’ Report on Profit Forecast and Profit Projection” as well as the assumptions and the sensitivity analysis set out below.

Total return for the period/year before income tax 12,220 121,866 49,963 90,239 Income tax expense(4) (2,311) (14,132) (8,896) (20,111) Total return for the period/year 9,909 107,734 41,067 70,128

Attributable to: Unitholders 8,695 106,466 36,342 65,128 Minority interests 1,214 1,268 4,725 5,000 Total return for the period/year 9,909 107,734 41,067 70,128

E-2 Reconciliation from Total Return for the period/year to amount available for distribution to Unitholders: Forecast Period 2010 Projection Year 2011 (1 October 2010 to 31 December 2010) (1 January 2011 to 31 December 2011) Target Target Acquisitions Acquisitions Existing and Enlarged Existing and Enlarged Portfolio Divestment(1) Portfolio Portfolio Divestment(1) Portfolio ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) Total return attributable to Unitholders from Consolidated Statements of Total Return 8,695 106,466 36,342 65,128 Net effect of non-tax deductible/chargeable items and other adjustments(3) 2,490 (85,860) 9,747 22,370 Amount available for distribution to Unitholders 11,185 20,606 46,089 87,498 Units in issue (’000) 620,415 1,121,973 623,749 1,130,061 Distribution per Unit 1.80 1.84 7.39 7.74 (cents)(5) Distribution per Unit (cents) — annualised(5),(6) 7.21 7.35 7.39 7.74 Notes: (1) Apart from Gross Revenue and direct expenses, other operating income and expenses have not been allocated to the Target Acquisitions and Divestment as such allocation would be arbitrary and may not be meaningful. (2) Refers to acquisition fee capitalised as part of cost of serviced residence properties at completion of the Transactions. This acquisition fee is subsequently accounted as change in fair value of serviced residence properties as at 31 December 2010 when serviced residence properties is recorded at valuation. (3) These include non-tax deductible expenses relating to the portion of the Manager’s management fees which are payable in the form of Units, other expenses which are non-deductible for tax purposes, adjustments for certain non-cash items including depreciation of plant and equipment, net change in fair value of serviced residence properties and profit from Divestment. (4) For Forecast Period 2010, income tax expenses for the Enlarged Portfolio included $9.4 million of withholding tax relating to the Divestment. (5) Pursuant to the announcement on 6 August 2010, a sale and purchase agreement has been entered into for the sale of Country Woods, Jakarta for US$24.2 million, subject to satisfaction of conditions precedent. Completion for the sale of Country Woods is expected to take place in the fourth quarter of 2010. The impact to DPU of the Existing and Enlarged Portfolio is not expected to be significant for both Forecast Period 2010 and Projection Year 2011. (6) Excludes utilisation of deferred tax assets of approximately $0.4 million and $1.5 million, for Forecast Period 2010 and Projection Year 2011 respectively. Such utilisation is non-recurring in nature as the deferred tax assets is expected to be fully utilised in Projection Year2011. Including the utilisation of deferred tax assets, annualised DPU of the Enlarged Portfolio would have been 7.48 cents and 7.87 cents for Forecast Period 2010 and Projection Year 2011 respectively.

Illustrative Issue Price Range of the New Units Save for tables A and B below which are prepared based on an illustrative Issue Price range of $1.07 to $1.23 per New Unit, the Manager has prepared the Profit Forecast and Profit Projection based on an illustrative issue price of $1.15 per New Unit and the assumptions set out below. The Manager considers these assumptions to be appropriate and reasonable as at the date of this Offer Information Statement. However, Unitholders should carefully consider the Profit Forecast and Profit Projection together with these assumptions and make their own assessment of the future performance of Ascott REIT. The forecast and projected distribution yields stated in the tables below are calculated based on the illustrative price range of $1.07 to $1.23 per New Unit. Such yields will vary accordingly for investors who purchase Units in the secondary market at a market price that differ from the illustrative issue price range of $1.07 to $1.23 per New Unit. In no circumstances should the inclusion of such an illustrative issue price range be regarded as a representation, warranty or prediction with respect to the market trading price of the Units on the SGX-ST. None of Ascott

E-3 REIT, the Manager, the Trustee or TAL guarantees the performance of Ascott REIT or the payment of any distributions, or any particular return on the Units.

Table A: Forecast Period 2010 Aggregate (2) Existing Portfolio Enlarged Portfolio Leverage of Equity Fund Total Debt Annualised Annualised Annualised Annualised Enlarged Ascott Issue Raising(1) Financing DPU Distribution DPU Distribution Accretion REIT Group(3) Price ($) ($ million) ($ million) (cent) yield (%) (cent) yield (%) (%) (%) 1.23 599.6 77.3 7.21 5.86 7.48 6.08 + 3.7 37.9 1.21 589.9 87.1 7.21 5.96 7.45 6.16 + 3.3 38.3

1.19 580.1 96.8 7.21 6.06 7.41 6.23 + 2.8 38.6 1.17 570.4 106.6 7.21 6.16 7.38 6.31 + 2.3 39.0 1.15 560.6 116.3 7.21 6.27 7.35 6.39 + 1.9 39.3 1.13 550.9 126.1 7.21 6.38 7.31 6.47 + 1.4 39.6

1.11 541.1 135.8 7.21 6.50 7.28 6.56 + 1.0 39.9 1.09 531.4 145.6 7.21 6.61 7.25 6.65 + 0.5 40.3 1.07 521.6 155.3 7.21 6.74 7.21 6.74 + 0.0 40.6

1.21 589.9 87.1 7.39 6.11 7.84 6.48 + 6.2 38.3 1.19 580.1 96.8 7.39 6.21 7.81 6.56 + 5.7 38.6 1.17 570.4 106.6 7.39 6.32 7.78 6.65 + 5.2 39.0 1.15 560.6 116.3 7.39 6.43 7.74 6.73 + 4.8 39.3

1.13 550.9 126.1 7.39 6.54 7.71 6.82 + 4.3 39.6 1.11 541.1 135.8 7.39 6.66 7.68 6.92 + 3.9 39.9 1.09 531.4 145.6 7.39 6.78 7.64 7.01 + 3.5 40.3 1.07 521.6 155.3 7.39 6.91 7.61 7.11 + 3.0 40.6

Gross Revenue and Gross Profit Forecast and Projection The underlying forecast and projected Gross Revenue and Gross Profit of each of the properties in the Existing Portfolio and the Target Properties by country are set forth in the table below. The Manager wishes to highlight that the Target Properties in Germany and France are under a master lease structure for which Ascott REITwill receive rental payments under a prescribed formula. The balance of the Target Properties are under management contracts, which means that Ascott REIT consolidates the revenue and expenses of operating such properties. Accordingly the Gross Profit margin for the properties under the master lease structure may differ substantially from those under management contract.

E-4 Gross Revenue and Gross Profit Forecast and Projection for the properties in the Existing Portfolio and the Target Properties Forecast Period 2010 Projection Year 2011 Gross Revenue Gross Profit Gross Revenue Gross Profit ($’000) ($’000) ($’000) ($’000) Properties in the Existing Portfolio Singapore 8,386 4,502 36,618 19,502 Australia 1,876 445 7,820 1,756 China 9,033 3,173 37,001 12,844 Indonesia 4,775 1,271 19,677 5,202 Japan 4,442 2,695 17,605 10,641 The Philippines 7,474 3,127 30,991 12,926 Vietnam 9,345 5,646 37,915 22,284 Subtotal before Divestment 45,331 20,859 187,627 85,155 Less: Divestment (4,073) (1,413) (17,079) (5,973) Subtotal after Divestment 41,258 19,446 170,548 79,182 The Target Properties France 9,287 8,729 38,113 35,569 Germany 944 868 3,780 3,551 United Kingdom 9,098 4,232 40,104 20,294 Belgium 2,718 598 12,472 3,054 Spain 1,495 659 6,940 3,426 Singapore 2,041 801 8,829 3,789 Vietnam 1,914 934 8,346 4,142 Subtotal 27,497 16,821 118,584 73,825 Total 68,755 36,267 289,132 153,007

Assumptions The Manager has prepared the Profit Forecast and Profit Projection for the Forecast Period 2010 and the Projection Year 2011 based on the assumptions listed below. The Manager considers these assumptions to be appropriate and reasonable as at the date of this Offer Information Statement. However, recipients of this Offer Information Statement and all prospective investors in the Units should consider these assumptions as well as the Profit Forecast and Profit Projection and make their own assessment of the future performance of Ascott REIT.

Completion date The Profit Forecast and the Profit Projection have been prepared assuming that Ascott REIT proceeds with all of the Transactions, the Equity Fund Raising and the Debt Financing, all of which are completed on 1 October 2010.

E-5 Foreign exchange rates The Profit Forecast and the Profit Projection for the Forecast Period 2010 and the Projection Year2011 are prepared based on the following foreign exchange rates of the United States Dollar, the Renminbi, the Japanese Yen, the Australian Dollar, the Philippines Peso, the Euros and Pound Sterling to the Singapore Dollar: Exchange rate (Singapore Dollar to 1 Foreign currency) Foreign Currency Forecast Period 2010 and Projection Year 2011 United States Dollar 1.3800 Renminbi 0.2050 Japanese Yen 0.0152 Australian Dollar 1.2000 Philippines Peso 0.0303 Euros 1.7500 Pound Sterling 2.0700 The Manager has applied the above foreign exchange rates in its preparation of the forecast Consolidated Statements of Total Return for the Forecast Period 2010 and the Projection Year 2011. The Manager wishes to highlight that the exchange rates applied and actual exchange rates in the Forecast Period 2010 and Projection Year 2011 are likely to be different.

(I) Gross Revenue Gross Revenue comprises (a) gross rental income, (b) car park income, and (c) hospitality income earned from the properties in the Existing Portfolio and the Target Properties, which includes food and beverages income and service charges. Forecast Period 2010 Projection Year 2011 Existing Enlarged Existing Enlarged Portfolio Portfolio Portfolio Portfolio $’000 $’000 $’000 $’000 (a) Gross rental income 40,160 61,817 165,295 259,400 (b) Car park income 820 965 3,549 4,203 (c) Hospitality income 4,351 5,973 18,783 25,529 Gross Revenue 45,331 68,755 187,627 289,132

A summary of the assumptions which have been used in calculating the revenue is set out below: (a) Gross Rental Income Gross rental income consists of (i) Apartment Rental Income and (ii) retail and office rental income. (i) Apartment Rental Income Apartment Rental Income comprises income from the rental of serviced residence apartment units and rental housing properties under Ascott REIT’s portfolio. Approximately 16% of the Enlarged Portfolio’s Apartment Rental Income for both the Forecast Period 2010 and Projection Year 2011 is derived based on a master lease structure for the France Target Properties and German Target Properties. Apartment Rental Income from these leases are either pre-determined or are expected to grow in line with certain published annual indices stated in the Master Leases. For the Forecast Period 2010, the actual rental payment for the year ended 31 December 2009 are increased, where applicable, by the published relevant index specified in the Master Leases or, if the relevant index has not been published yet, by the Manager’s estimate for the increase in the relevant index. For Projection Year 2011, the Manager

E-6 increases the rental payments (projected for the year ending 31 December 2010) by estimated increases in the relevant index for the year ending 31 December 2011. The remaining of the Enlarged Portfolio’s Apartment Rental Income is forecast based on assessed occupancies and average daily rates. The Manager has assessed occupancies and the average daily rates to arrive at the REVPAU for each of the properties in the Existing Portfolio and the Target Properties, which are not under a master lease structure for both the Forecast Period 2010 and the Projection Year 2011. For the Forecast Period 2010, forecast occupancies are derived after taking into account historical and current operating performance of each Existing and Target Property and the expected achievable occupancy levels based on underlying forecast economic conditions in each of the 10 jurisdictions. For the Projection Year 2011, forecast occupancies have incorporated the impact of asset enhancement initiatives for selected properties, expected changes in competitive landscape, implementation of yield management strategies and/or major events that will take place in each of the 10 jurisdictions. The forecast average daily rates for each Property are assessed based on the current achieved rates and economic outlook in each of the 10 jurisdictions for the Forecast Period 2010. For the Projection Year2011, the Manager forecasts the average daily rates to grow in line with Gross Domestic Product (“GDP”) growth and has also considered the impact of asset enhancement initiatives and major events that will take place in each of the 10 jurisdictions. Based on the forecast occupancies and average daily rates as discussed above, the Manager arrives at the forecast weighted average REVPAU in each of the 10 jurisdictions as follows: Weighted average REVPAU(1) ($) Forecast Period Projection Year 2010 2011 Singapore 191 210 Australia 156 157 China 118 121 Indonesia 71 73 Japan(2) 152 148 The Philippines(3) 160 166 Vietnam 109 111 United Kingdom 159 174 Belgium 78 93 Spain 100 119 Notes: (1) Weighted average REVPAU annual growth for Target Properties in France and Germany are not relevant as these properties are under a master lease structure where the Apartment Rental Income is pre-determined or expected to grow in line with published annual indices. (2) Refers to serviced residences in Japan, excludes rental housing. (3) Excludes Somerset Salcedo Property which is under a master lease structure. The Manager believes that these assumptions are appropriate as they intend to undertake targeted marketing and promotional activities, in addition to continuing maintenance and refurbishment of soft furnishings at the properties in the Existing Portfolio and the Target Properties as well as accelerating asset enhancement initiatives for selected properties, in order to achieve sustainable growth at the properties in the Existing Portfolio and the Target Properties in the Forecast Period 2010 and Projection Year 2011. (ii) Retail and office rental income Retail and office rental income comprises rental income resulting from leasing out available retail and office spaces in certain properties in the Existing Portfolio and certain Target

E-7 Properties. Retail and office rental income is expected to grow in line with expected GDP growth for each of the 10 jurisdictions. (b) Car park income Car park income includes income resulting from the operation of the car parking facilities in certain properties in the Existing Portfolio and certain Target Properties. The Manager has forecast the car park income to vary proportionately with forecast occupancies and to increase at an annual growth rate which approximates the inflation rate of each of the relevant jurisdictions for each of the Forecast Period 2010 and the Projection Year 2011. (c) Hospitality income Hospitality income mainly includes fees from usage of the business centres and laundry facilities, income earned from the sales of food and beverages, shortfall of net operating profit (“NOP”) or earnings before net interest expenses, tax, depreciation and amortisation (“EBITDA”), recoveries from guests for utilities including telephone charges, service and maintenance fees and property taxes, fees for managing public areas, and other miscellaneous income. For certain of the Target Properties and Somerset West Lake which are under management contract, it has been agreed that Ascott REIT will receive a minimum NOP or EBITDA guarantee amount. It has been forecast that Citadines Bruxelles Toison d’Or and Citadines Barcelona Ramblas will not achieve the minimum NOP guarantee amount and Somerset West Lake will not achieve the minimum EBITDA guarantee amount. Both the shortfall of NOP/EBITDA guarantee amount has been included in the hospitality income by the Manager. Other than the shortfall of NOP/EBITDA, generally the Manager has forecast hospitality income to vary proportionately with forecast occupancies and to increase at an annual growth rate which approximates the inflation rate of each of the relevant jurisdictions for both the Forecast Period 2010 and the Projection Year 2011.

(II) Direct expenses Direct expenses consist primarily of: Forecast Period 2010 Projection Year 2011 Existing Enlarged Existing Enlarged Portfolio Portfolio Portfolio Portfolio $’000 $’000 $’000 $’000 (a) Staff costs 4,545 6,622 18,822 27,396 (b) Operation and maintenance expenses 6,767 7,818 28,142 31,688 (c) Marketing and selling expenses 975 1,440 4,092 5,781 (d) Property tax 1,708 2,624 7,340 10,760 (e) Serviced residence management fees 3,296 4,226 13,929 18,968 (f) Depreciation 1,673 2,626 7,277 10,965 (g) Other direct expenses 5,508 7,132 22,870 30,567 Total direct expenses 24,472 32,488 102,472 136,125

A summary of the assumptions which have been used in calculating direct expenses is set out below: (a) Staff costs Staff costs relate to wages and salaries, staff benefits and other expenses relating to the hiring of staff to carry out day-to-day operations at the properties in the Existing Portfolio and the Target Properties, including housekeeping services, reception services, security services and other services. Staff costs have been forecast as a function of the average cost per headcount and the expected number of staff employed at the properties in the Existing Portfolio and the Target Properties.

E-8 The Manager has considered the actual average cost per headcount incurred in each of the properties in the Existing Portfolio and the Target Properties for the six months ended 30 June 2010, to estimate the staff costs for the Forecast Period 2010. For the Projection Year 2011, average cost per headcount is expected to grow at an annual growth rate in each country, which approximates the inflation rate of each of the 10 jurisdictions. In addition, the Manager has also considered staffing requirements at the properties in the Existing Portfolio and the Target Properties by taking into account the forecast performance of the properties in the Existing Portfolio and the Target Properties (in particular, occupancy levels, operating efficiencies and synergies). (b) Operation and maintenance expenses Operation and maintenance expenses relate to costs incurred for the provision of services and upkeep of the properties in the Existing Portfolio and the Target Properties, including housekeeping, security, cleaning, electricity and utility expenses and minor repairs of soft furnishings at the properties in the Existing Portfolio and the Target Properties. In general, the Manager has forecast variable components of operation and maintenance expenses to vary in proportion to forecast occupancies. For the Forecast Period 2010, the Manager has also considered the actual level of spending incurred for the six months ended 30 June 2010 in the estimation of variable and fixed components of operation and maintenance expenses. For Projection Year2011, both variable and fixed components of operation and maintenance expenses are also forecast to grow at an annual growth rate which approximates the inflation rate of each of the 10 jurisdictions. For the Enlarged Portfolio, total operation and maintenance expenses approximate 11% of Gross Revenue for both the Forecast Period 2010 and the Projection Year 2011. (c) Marketing and selling expenses Marketing and selling expenses relate to costs incurred in advertising and promotional activities of the properties in the Existing Portfolio and the Target Properties. The Manager has generally forecast such marketing and selling expenses to vary in proportion to revenue for the Forecast Period 2010. Where the Manager intends to increase marketing efforts at certain of the properties in the Existing Portfolio and the Target Properties, consideration has been made for additional expenses in the Profit Forecast. For the Enlarged Portfolio, total marketing and selling expenses are estimated as 2% of Gross Revenue for each of the Forecast Period 2010 and the Projection Year 2011. (d) Property tax Generally, it has been assumed that the basis of assessment for property tax by the tax authorities in each of the 10 jurisdictions will remain the same as the latest year of assessment and that no property tax rebate will be given by the tax authorities. Where the latest year of assessment for property tax are still under review by the tax authorities, the Manager has considered the potential additional property tax payable for the Forecast Period 2010 and the Projection Year 2011. (e) Serviced residence management fees Under the SR Management Agreements, the SR Management Companies are each entitled to a basic management fee and/or an incentive management fee for each of the properties in the Existing Portfolio and the Target Properties (except for those Properties that are under a master lease structure). In relation to each Existing Property (excluding Somerset Salcedo Property), Citadines Singapore Mount Sophia Property, and Somerset Hoa Binh, Hanoi, the SR Management Companies are each entitled to: • Basic management fee ranging between 2% and 3% per annum of Gross Revenue of each of the Property; and

E-9 • Incentive management fee up to 10% per annum of gross operating profit of each of the Property. In relation to each Target Property (excluding Citadines Singapore Mount Sophia Property, Somerset Hoa Binh, Hanoi and the France Target Properties and German Target Properties which are under a master lease structure), the SR Management Companies are each entitled to: • Basic fee fixed at 3% per annum of Gross Revenue and 6% per annum of NOP of each of the Property; • Incentive management fee fixed at 50% of any excess NOP achieved above the NOP hurdle of each of the Property agreed with the SR Management Companies; and • License fee fixed at 1% per annum of Gross Revenue of Citadines London Barbican, Citadines London Trafalgar Square and Citadines London Holborn-Covent Garden. (f) Depreciation Depreciation has been assumed to be provided on the Group’s plant and equipment on a straight-line basis so as to write off items of plant and equipment over their estimated useful lives. The Manager has forecast depreciation of the plant and equipment to amount to $2.6 million and $11.0 million for the Forecast Period 2010 and the Projection Year 2011 respectively. (g) Other direct expenses Other direct expenses include business tax, bank charges and general and administrative expenses. The Manager has taken into consideration the actual historical trend of spending, incurred for six months ended 30 June 2010 to estimate other direct expenses (variable and fixed components) for Forecast Period 2010. Generally, variable components (including business tax, bank charges and certain of the general and administrative expenses) are forecast to vary in proportion to revenue. For the Projection Year 2011, fixed components have been arrived at by applying an annual growth rate (which approximates the inflation rate of each of the 10 jurisdictions) to the expenses for the Forecast Period 2010.

(III) Interest expense The Manager has forecast the interest-bearing loans to be approximately $1.1 billion for the Forecast Period 2010. Of this amount, $0.6 billion is part of the existing loans which have been drawn down, $0.1 billion is the additional loans to be raised to partially finance the Target Acquisitions, and the remaining amount of $0.4 billion is the estimated loans (inclusive of finance lease payables) to be assumed by Ascott REIT upon completion of the Target Acquisitions. These loans are principally denominated in Singapore Dollar, Japanese Yen, the Australian Dollar, the United States Dollar, Euros and Pound Sterling. The Manager has estimated that Ascott REIT’s Average Leverage ratio will be approximately 39.3% post completion of the Transactions, the Equity Fund Raising and Debt Financing, assuming 487,518,000 New Units are raised in the Equity Fund Raising at an illustrative issue price of $1.15 per New Unit. The existing loans have been forecast to bear interest rates ranging from 0.99% to 6.58% per annum for the Forecast Period 2010 and from 0.99% to 8.05% per annum for the Projection Year 2011. For the Debt Financing of $0.1 billion, the Manager has assumed the issuance of new notes under its multicurrency medium term notes programme, at interest rates of approximately 3.8% per annum. The loans to be assumed by Ascott REIT upon completion of the Target Acquisitions have been forecast to bear interest rates ranging from 2.41% to 6.90% per annum for the Forecast Period 2010 and from 3.16% to 6.90% per annum for the Projection Year 2011. For the Existing Portfolio, the average cost of debt is approximately 3.46% per annum and 3.49% per annum for the Forecast Period 2010 and Projection Year 2011 respectively. For the Enlarged Portfolio, the average cost of debt is approximately 3.57% per annum and 3.77% per annum for the Forecast Period 2010 and Projection Year 2011 respectively. The Manager has assumed that the interest rate exposure is managed through the use of interest rate swaps, interest rate caps and/or use of fixed rate borrowings. Approximately 60% of the total debts of the Enlarged Portfolio are on a fixed interest rate basis for Forecast Period 2010 and

E-10 Projection Year 2011. The interest cover is approximately 3.2 times for both Forecast Period 2010 and Projection Year 2011.

(IV) Manager’s management fees The Manager is entitled under the Trust Deed to the following management fees: (a) a base fee of 0.3% per annum of the property values (the “Base Fee”); and (b) an annual performance Fee (the “Performance Fee”) of: • base performance fee of 4.0% per annum of the Group’s share of Gross Profit for each financial year; and • in the event that the Group’s share of Gross Profit increases by more than 6.0% annually, an outperformance fee of 1.0% of the difference between the Group’s share of that financial year’s Gross Profit and 106% of the Group’s share of the preceding year’s Gross Profit (the “Outperformance Fee”), (collectively, the “Management Fees”). To arrive at the forecast distribution, it has been assumed that the Base Fee and annual Performance Fee for the properties in the Existing Portfolio payable to the Manager will be satisfied in the form of 50% cash and 50% Units for the Forecast Period 2010 and the Projection Year 2011. The Base Fee and annual Performance Fee for the Target Properties payable to the Manager had been assumed to be satisfied 100% in the form of Units for the Forecast Period 2010 and the Projection Year 2011. Where the Management Fee is payable in Units, the Manager has assumed that such units are issued at $1.15 per Unit (being the illustrative issue price). It is assumed that no additional Outperformance Fee will be paid or is payable in the Forecast Period 2010 and Projection Year 2011.

(V) Trustee’s fee Under the Trust Deed, the Trustee’s fee is charged based on a scaled basis of up to 0.1% per annum of the Deposited Property, subject to a minimum of $10,000 per month, excluding out-of-pocket expenses and GST. The Trustee’s fee will be subject to review annually. The Trustee’s fee for the Forecast Period 2010 and the Projection Year 2011 is expected to be $0.1 million and $0.3 million respectively.

(VI) Professional fees, audit fees and other operating expenses Professional fees include mainly legal fees and tax consultancy fees. The Manager has forecast professional fees based on foreseeable professional services required for the Forecast Period 2010 and has forecast professional fees to grow at an annual growth rate which approximates the inflation rate of each of the 10 jurisdictions for the Projection Year 2011. Other operating expenses comprise primarily trust expenses which include recurring operating expenses such as annual listing fees, registry fees, valuation fees, costs associated with the preparation and distribution of reports to Unitholders, investor communication costs and miscellaneous expenses.

(VII) Tax Expense The following taxes have been factored into the Profit Forecast and Profit Projection: • Australia, Indonesia, Japan, the Philippines, China, Vietnam, France, Belgium, Germany, Spain, United Kingdom and Singapore corporate income tax; • Vietnam preferential corporate income tax for certain properties; and • Indonesia, Japan and the Philippines withholding tax on interest payments.

E-11 Income tax It has been assumed that income tax will remain at the prevailing tax rates in each of the 12 jurisdictions for both the Forecast Period 2010 and the Projection Year 2011. For the two properties in Vietnam, preferential tax rates have been granted by the local tax authorities as below: Properties Preferential tax rates Expiry year Somerset Grand Hanoi 20% 2038 Somerset West Lake 19% 2041

Withholding tax It has been assumed that the withholding tax on interest income derived from overseas properties in the Existing Portfolio and the Target Properties will remain at the prevailing rates.

(VIII) Unitholders’ distribution Unitholders’ distribution is calculated by reference to the consolidated profits from operations arising from its Enlarged Portfolio, after the following adjustments: (a) For the Singapore properties: Adding back expenses that are not deductible for Singapore tax purposes in relation to the Singapore properties (for example, depreciation expenses of plant and machinery, Trustee’s fees and the portion of the Manager’s Management Fees paid in Units) (b) For the overseas properties: • adding back depreciation expenses in relation to the overseas properties, net of related deferred tax expenses (as the depreciation and its related deferred tax expenses are not-cash items); • adding back trust expenses (for example, the portion of the Manager’s Management Fees paid in Units, attributable to the overseas properties as this is a non-cash item). The Manager has assumed that the gain from Divestment will not be distributed and will be used to part finance the Target Acquisitions. It has also been assumed that 100% of Unitholders’ distribution will be distributed to Unitholders for the Forecast Period 2010 and Projection Year 2011.

(IX) Capital expenditure The Manager has forecast capital expenditure for major renovation plans to enhance the EBITDA yield and for improvement works which include plans to: • Upgrade facilities such as the gym, sauna and swimming pools at certain properties in the Existing Portfolio and Target Properties; • Refurbish the interiors of certain properties in the Existing Portfolio and the TargetProperties such as replacement of fixtures and fittings in the serviced residence apartment units, lobby and refurbishment of public areas; • Minor mechanical and engineering works due to aging of the structure of the Properties as well as replacement of operating equipment and supplies. It has been assumed that the capital expenditure will be funded primarily through cash flow from operations and/or further borrowings. Capital expenditure incurred is capitalised as part of the value of the relevant Property and has no impact on the forecast Consolidated Statements of Total Return or distributions other than the depreciation expense and capital allowances claimed, if any. The capital expenditure for improvement works at the properties in the Existing Portfolio and the Target Properties is forecast to be $8.5 million and $25.6 million for the Forecast Period 2010 and the Projection Year 2011 respectively.

E-12 (X) Distribution Reinvestment Arrangement The Trust Deed gives the Manager, where appropriate, the option of activating an arrangement whereby Unitholders may elect to re-invest all or part of their distribution entitlement in return for an issue of additional Units in Ascott REIT. It has been assumed that the Manager will not activate the distribution reinvestment arrangement during the Forecast Period 2010 and the Projection Year 2011. This assumption does not, however, preclude the Manager from exploring the implementation of such a distribution reinvestment arrangement during the Forecast Period 2010 and the Projection Year 2011.

(XI) Capital Raising The Profit Forecast and Profit Projection have been prepared based on an illustrative issue price of $1.15 per New Unit and that the net proceeds from the Equity Fund Raising will be used to part fund the Target Acquisitions, associated costs and for working capital purposes. Acquisition and divestment fees of $15.4 million are payable to the Manager in relation to the Target Acquisitions and Divestment, which is fully payable in Units. The Manager has assumed that such units are issued on 1 October 2010 at $1.15 per Unit (being the illustrative issue price).

(XII) Unit Issue Expenses The costs associated with the issue of the Units will be paid for by Ascott REIT. These costs are charged against net assets attributable to Unitholders in the balance sheet and have no impact on the distributions.

(XIII) Properties It is assumed that the properties in the Existing Portfolio and the Target Properties will be revalued annually, effective 31 December each year, and the next valuation will be carried out on 31 December 2010. For purposes of the Profit Forecast and the Profit Projection for Forecast Period 2010 and Projection Year 2011, the Manager has assumed an increase in the value of the properties in the Existing Portfolio and the Target Properties only to the extent of the assumed capital expenditure described in paragraph (IX) above. The Manager has made a hypothetical assumption that the values of the properties in the Existing Portfolio and the Target Properties (except for the effect of the assumed capital expenditure) will, until 31 December 2011, remain at the amounts at which they were valued as at the respective dates as disclosed in Appendix A of this Offer Information Statement. In addition, it is assumed that the fair value of Ascott Beijing is unchanged between 30 June 2010 and 1 October 2010. Any subsequent write-down of the values of the properties in the Existing Portfolio and the Target Properties will not affect the forecast distributions per Unit for the Forecast Period 2010 and Projection Year 2011 because Ascott REIT’s distributions are based on Unitholders’ distribution, which excludes appreciation and depreciation upon revaluation of the properties in the Existing Portfolio and the Target Properties.

(XIV) Accounting Standards The Manager has assumed that there will be no change in applicable accounting standards or other financial reporting requirements that may have a material effect on the forecast Consolidated Statements of Total Return. Significant accounting policies adopted by the Manager in the preparation of the profit forecast are set out in Appendix C of this Offer Information Statement.

Other Assumptions The Manager has made the following additional assumptions in preparing the Profit Forecast and Profit Projection for the Forecast Period 2010 and the Projection Year 2011: • that Ascott REIT’s significant accounting policies remain consistent with those set out in Appendix C; • that Ascott REIT ’s portfolio remains unchanged throughout the periods;

E-13 • that there is no material disruption to the serviced residence market where any of the properties included in the Enlarged Portfolio is located; • that there will be no change in taxation legislation or other applicable legislation; • that there will be no change to the Tax Ruling; • that all leases and licences are enforceable and will be performed in accordance with their terms; and • that there is no change in fair value of any financial derivatives entered into by Ascott REIT throughout the Forecast Period 2010 and Projection Year 2011.

Sensitivity Analysis The forecast distribution included in this Offer Information Statement is based on a number of assumptions that have been outlined above. The forecast distribution is also subject to a number of risks as outlined in “Risk Factors”. Recipients of this Offer Information Statement and all prospective investors in the Units should be aware that future events cannot be predicted with any certainty and deviation from the figures forecast in this Offer Information Statement are to be expected. To assist recipients of this Offer Information Statement and all prospective investors in the Units in assessing the impact of these assumptions on the Profit Forecast and Profit Projection, a series of tables demonstrating the sensitivity of the DPU to changes in the principal assumptions are set out below. The sensitivity analysis is intended to provide a guide only and variation in actual performance could exceed the ranges shown. Movement in other variables may offset or compound the effect of a change in any variable beyond the extent shown.

Exchange Rates Changes in the exchange rate of both of the Euros and Pound Sterling to the Singapore Dollar, will affect the Net Purchase Consideration and total return of Ascott REITand, consequently, the DPU. The effect of variations in the exchange rates of both of the Euros and Pound Sterling to the Singapore Dollar on the DPU is set out below: Impact on DPU pursuant to changes in exchange rates Forecast Period 2010 Projection Year 2011 Exchange rate of Euros Increase/ Annualised Increase/ and Pound Sterling (Decrease) DPU Change (Decrease) DPU Change (cents) (cents) (%) (cents) (cents) (%) 5.0% above base case(1) 0.04 7.39 +0.5 0.06 7.80 +0.8 Base case(2) — 7.35 ——7.74 — 5.0% below base case(1) (0.04) 7.31 –0.5 (0.06) 7.68 –0.8 Notes: (1) Sensitivity analysis of changes in exchange rates are applied on Euro and Pound Sterling only. (2) DPU for Forecast Period 2010 and Projection Year 2011 as shown in the forecast Consolidated Statements of Total Return based on 487,518,000 New Units issued under the Equity Fund Raising at an illustrative issue price of $1.15 per New Unit.

E-14 REVPAU Changes in the REVPAU will impact the gross profit of Ascott REIT and, consequently, the DPU. The assumptions for REVPAU have been set out earlier in this section. The effect of variations in the REVPAU on the DPU is set out below: Impact on DPU pursuant to changes in REVPAU(1) Forecast Period 2010 Projection Year 2011 Increase/ Annualised Increase/ REVPAU(1) (Decrease) DPU Change (Decrease) DPU Change (cents) (cents) (%) (cents) (cents) (%) 5.0% above base case(2) 0.79 8.14 +10.7 0.84 8.58 +10.9 Base case(3) — 7.35 ——7.74 — 5.0% below base case(4) (0.79) 6.56 –10.7 (0.84) 6.90 –10.9 Notes: (1) Sensitivity analysis on REVPAU is carried out on the individual REVPAU figures for each of the Existing Portfolio (save for Somerset Salcedo Property) and the Target Properties (save for the France Target Properties and German Target Properties under a master lease structure), for the Forecast Period 2010 and the Projection Year 2011. All variable expenses have been held constant. (2) Implies an increase of 5% in the REVPAU of each of the Existing Portfolio (save for Somerset Salcedo Property) and the Target Properties (save for the France Target Properties and German Target Properties under a master lease structure). (3) DPU for Forecast Period 2010 and Projection Year 2011 as shown in the forecast Consolidated Statements of Total Return based on 487,518,000 New Units issued under the Equity Fund Raising at an illustrative issue price of $1.15 per New Unit. (4) Implies a decrease of 5.0% in the REVPAU of each of the Existing Portfolio (save for Somerset Salcedo Property) and the Target Properties (save for the France Target Properties and German Target Properties under a master lease structure).

Direct expenses Changes in direct expenses will impact the Gross Profit of Ascott REIT and, consequently, the DPU. The assumptions for direct expenses have been set out earlier in this section. The effect of variations in direct expenses on the DPU is set out below: Impact on DPU pursuant to changes in Direct Expenses Forecast Period 2010 Projection Year 2011 Increase/ Annualised Increase/ Direct Expenses (Decrease) DPU Change (Decrease) DPU Change (cents) (cents) (%) (cents) (cents) (%) 5.0% below base case(1) 0.58 7.93 +7.9 0.60 8.34 +7.8 Base case(2) — 7.35 ——7.74 — 5.0% above base case(3) (0.58) 6.77 –7.9 (0.60) 7.14 –7.8 Notes: (1) Implies a decrease of 5.0% in direct expenses (2) DPU for Forecast Period 2010 and Projection Year 2011 as shown in the forecast Consolidated Statements of Total Return based on 487,518,000 New Units issued under the Equity Fund Raising at an illustrative issue price of $1.15 per New Unit. (3) Implies an increase of 5.0% in direct expenses

E-15 Interest Expenses Changes in borrowing costs will affect the net profit of Ascott REITand, consequently, the DPU. The effect of variations in interest rates on the DPU is set out below: Impact on DPU pursuant to changes in Interest Expenses Forecast Period 2010 Projection Year 2011 Increase/ Annualised Increase/ Interest Expenses (Decrease) DPU Change (Decrease) DPU Change (cents) (cents) (%) (cents) (cents) (%) 50 basis points decrease in the applicable interest rate(1) 0.19 7.54 +2.6 0.20 7.94 +2.6 Base case(2) — 7.35 ——7.74 — 50 basis points increase in the applicable interest rate(1) (0.19) 7.16 –2.6 (0.20) 7.54 –2.6 Notes: (1) Sensitivity analysis of changes in interest rates are applied to the debts of the Enlarged Portfolio which are on a variable interest rate basis during the respective Forecast Period 2010 and Projection Year 2011. (2) DPU for Forecast Period 2010 and Projection Year 2011 as shown in the forecast Consolidated Statements of Total Return based on 487,518,000 New Units issued under the Equity Fund Raising at an illustrative issue price of $1.15 per New Unit.

E-16 APPENDIX F

INDEPENDENT ACCOUNTANTS’ REPORT ON PROFIT FORECAST AND PROFIT PROJECTION

The Board of Directors Ascott Residence Trust Management Limited (in its capacity as Manager of Ascott Residence Trust) 8 Shenton Way #13-01 Singapore 068811

DBS Trustee Limited (in its capacity as Trustee of Ascott Residence Trust) 6 Shenton Way #14-01 DBS Building Tower One Singapore 068809

13 September 2010

Dear Sirs

Letter from the Independent Accountants on the Profit Forecast for the Three-Month Period Ending 31 December 2010 and Profit Projection for the Year Ending 31 December 2011 This letter has been prepared for inclusion in the Offer Information Statement (the “OIS”) to be issued in connection with the proposed issue of new units in Ascott Residence Trust (“ART”) to acquire serviced residence properties in Singapore, Vietnam and Europe, together with the divestment of a serviced residence property in the People’s Republic of China. The directors of Ascott Residence Trust Management Limited (the “Directors”) are responsible for the preparation and presentation of the forecast and projected Consolidated Statement of Total Return for the three-month period ending 31 December 2010 (the “Profit Forecast”) and the year ending 31 December 2011 (the “Profit Projection”) as set out on pages E-2 and E-3 of the OIS, which have been prepared on the basis of their assumptions set out on pages E-5 to E-14 of the OIS (the “Assumptions”). We have examined the Profit Forecast of ART for the three-month period ending 31 December 2010 and Profit Projection for the year ending 31 December 2011 as set out on pages E-2 and E-3 of the OIS in accordance with Singapore Standard on Assurance Engagements (“SSAE”) 3400 The Examination of Prospective Financial Information. The Directors are solely responsible for the Profit Forecast and Profit Projection including the Assumptions set out on pages E-5 to E-14 of the OIS on which they are based.

Profit Forecast Based on our examination of the evidence supporting the relevant Assumptions, nothing has come to our attention which causes us to believe that the Assumptions do not provide a reasonable basis for the Profit Forecast. Further, in our opinion, the Profit Forecast, so far as the accounting policies and calculations are concerned, is properly prepared on the basis of the Assumptions, is consistent with the accounting policies set out on pages C-18 to C-30 of the OIS and is presented in accordance with the relevant presentation principles of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” (but not all the required disclosures) issued by the Institute of Certified Public Accountants of Singapore (“ICPAS”), which is the framework adopted by ART in the preparation of its financial statements.

Profit Projection The Profit Projection is intended to show a possible outcome based on the stated Assumptions. Because the length of the period covered by the Profit Projection extends beyond the period covered by the Profit Forecast, the Assumptions used in the Profit Projection (which included hypothetical assumptions about future events which may not necessarily occur) are more subjective than would be appropriate for a profit forecast. The Profit Projection does not therefore constitute a profit forecast.

F-1 Based on our examination of the evidence supporting the Assumptions, nothing has come to our attention which causes us to believe that the Assumptions do not provide a reasonable basis for the Profit Projection. Further, in our opinion the Profit Projection, so far as the accounting policies and calculations are concerned, is properly prepared on the basis of the Assumptions, is consistent with the accounting policies set out on pages C-18 to C-30 of the OIS and is presented in accordance with the relevant presentation principles of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” (but not all the required disclosures), which is the framework adopted by ART in the preparation of its financial statements. Events and circumstances frequently do not occur as expected. Even if the events anticipated under the hypothetical assumptions occur, actual results are still likely to be different from the Profit Forecast and Profit Projection since other anticipated events frequently do not occur as expected and the variation may be material. The actual results may therefore differ materially from those forecasted and projected. For the reasons set out above, we do not express any opinion as to the possibility of achievement of the Profit Forecast and Profit Projection. Attention is drawn, in particular, to the risk factors set out on pages 37 to 57 of the OIS which describe the principal risks associated with the Issue, to which the Profit Forecast and Profit Projection relate and the sensitivity analysis of the Profit Forecast and Profit Projection set out on pages E-14 to E-16 of the OIS.

Yours faithfully

KPMG LLP Public Accountants and Certified Public Accountants (Partner-in-charge: Leong Kok Keong) Singapore

F-2 APPENDIX G

SUMMARY VALUATION CERTIFICATES OF THE TARGET PROPERTIES AND ASCOTT BEIJING

16 August 2010 Savills Commercial Properties Limited 20 Grosvenor Hill London W1K 3HQ DBS Trustee Limited DL: +44 (0) 207 409 8874 (as trustee of Ascott Residence Trust) F: +44 (0) 207 409 7787 c/o Ascott Residence Trust Management Limited T: +44 (0) 207 449 8644 8 Shenton Way #13-01 savills.com Singapore 068811

Dear Sirs

VALUATION CERTIFICATES ON ASCOTT SERVICED RESIDENCES VALUATION OF 26 FREEHOLD & 2 LEASEHOLD ASSETS TRADING AS GOING CONCERNS

1. Instructions

1.1 We have been instructed by DBS Trustee Limited ³&OLHQW´ , to assess the Market Value (as defined below) of each Property as at 1 July WKH³9DOXDWLRQ'DWH´ RI the freehold and leasehold interests, as fully fitted, equipped and operational entities having regard to trading potential and available with vacant possession (as defined EHORZ RQWKHWHUPVGHILQHGKHUHLQ 7KH³9DOXDWLRQV´

We have inspected the 28 properties (thH³3URSHUWLHV´ DQGmade relevant enquiries in order to provide our opinion of the Market Value.

1.2 A total of 28 valuation certificates ³9DOXDWLRQCertificates´ are hereby enclosed for the purpose of inclusion in the prospectus in relation to the offering of new units in Ascott Residence Trust.

1.3 This covering letter must be read in conjunction with our Front Section valuation report dated 16 August 2010 which includes in more detail our assumptions, conditions, comparable evidence and valuation approach in order to arrive at the values herewith reported.

Offices in Europe, Asia, Australia and Africa

Savills Commercial Properties Limited, Chartered Surveyors. A subsidiary of Savills plc. Registered in England No. 2605125 G - 1 2. Basis of Valuation

2.1 In accordance with the International Valuation Standards, our valuations have been prepared on the basis of Market Value, which is defined in the Standards, as follows:

³7KHHVWLPDWHGDPRXQWIRUZKLFKDSURSHUW\VKRXOGH[FKDQJHRQWKHGDWHRIYDOXDWLRQ EHWZHHQDZLOOLQJEX\HUDQGDZLOOLQJVHOOHULQDQDUP¶V-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without FRPSXOVLRQ´

3 Valuation Approach

3.1 In arriving at our opinion of market value, we have adopted the Income Capitalisation Approach and our calculations are cross-checked by utilising the Market Comparison Method, having considered the relevant general and economic factors as well as investigated past sales transactions of comparable properties in the residential and commercial property markets.

3.2 In this approach, we have formed our opinion of the net income (or EBITDA; earnings before interest tax depreciation and amortisation) based on the sustainable and stabilised turnover and profit for each property. In most instances these are above 2009, which was a difficult trading year for all hotels and serviced apartments, but below a peak year in 2007. Adjustments have also been made taking into account recent or proposed capital expenditure.

3.3 We have capitalised the net income at an appropriate rate reflecting LQYHVWRU¶VWDUJHW rate of return compared to other forms of investment, to arrive at our opinion of the values.

3.4 The retail units located at 10 out of the 28 properties have been valued on a conventional investment basis with the net rental income capitalised at an appropriate capitalisation rate reflecting LQYHVWRU¶VWDUJHWUate of return.

G - 2 2 4. Valuations

4.1 The 28 Properties that we have valued are briefly described in the respective valuation certificates attached to this covering letter. Each Property has been valued individually and not as part of a portfolio. The Valuations for each Property are set out as follows:

S/No. Serviced Residence Use Gross Value SINGAPORE 1 Citadines Singapore Mount Sophia 154 Apartments S$ 104,000,000 VIETNAM 2 Somerset Hoa Binh, Hanoi 206 Apartments US$ 39,500,000 FRANCE 3 Citadines Lille Centre 101 Apartments ¼ 4 Citadines Grenoble 106 Apartments ¼ 5 Citadines Paris Louvre 51 Apartments + Retail Units ¼1,000 6 Citadines Paris Trocadéro 97 Apartments + Retail Unit ¼ 7 Citadines Lyon Presqu¶vle 116 Apartments ¼ 8 &LWDGLQHV3DULV3ODFHG¶,WDOLH 169 Apartments ¼ 9 Citadines Paris Montmarte 111 Apartments ¼ 10 Citadines Paris Tour Eiffel 104 Apartments + Retail units ¼ 11 Citadines Montepellier Antigone 122 Apartments ¼ 12 Citadines Marseille Castellane 97 Apartments ¼ 13 Citadines Paris Austerlitz 49 Apartments ¼ 14 Citadines Paris Voltaire République 76 Apartments ¼ 15 Citadines Paris Maine-Montparnasse 67 Apartments ¼ 16 Citadines Marseille Prado Chanot 77 Apartments ¼ 17 Citadines Paris Les Halles 189 Apartments ¼ 18 Citadines Paris Didot Alésia 80 Apartments ¼ 19 Citadines Cannes Carnot 58 Apartments ¼ UNITED KINGDOM 20 Citadines London Barbican 129 Apartments + Retail Unit £ 36,820,000 21 Citadines London South Kensington 92 Apartments + Retail Units £ 36,860,000 22 Citadines London Trafalgar Square 187 Apartments £ 66,500,000 23 Citadines London Holborn-Covent Garden 192 Apartments + Retail Units £ 62,600,000 BELGIUM 24 Citadines Bruxelles Sainte-Catherine 169 Apartments + Retail units ¼ 25 Citadines Bruxelles ToiVRQG¶2U 153 Apartments + Retail units ¼ GERMANY 26 Citadines Berlin Kurfürstendamm 118 Apartments + Retail unit ¼ 27 Citadines Munich Arnulfpark 146 Apartments ¼250,000 SPAIN 28 Citadines Barcelona Ramblas 131 Apartments + Retail unit ¼,440,000

G - 3 3 4. Assumptions

4.1 Transaction Costs

We have excluded any expenses of realisation or for taxation which might arise in the event of a disposal of any of the Properties such as Capital Gains Tax or Value Added Tax or any other tax liability. As instructed, we have not deducted purchasers acquisition costs.

4.2 Tenure

We are advised that all the properties in Europe are held freehold. The Singapore property is held on a 96 year lease until 2105, while the property in Vietnam is held on a 36 year lease until 2042.

4.3 Management Contracts

We have assumed the management fees being 3% of total revenue and up to 8% of gross opHUDWLQJ SURILW ³*23´ Ln accordance the industry convention, using the principles set out in the Uniform System of Accounting of the American Hotel and Motel Association.

4.5 Fixtures Fittings and Equipment

The serviced residences that are trading have been valued inclusive of all fixtures fittings and equipment necessary to continue trading. They are assumed to be free of all leasing or hire purchase agreements.

4.5 Trading Information

As we have been provided with trading accounts of previous years for some properties, we have therefore made assumptions to arrive at our own forecast for each asset based on a stabilised year of trade.

4.6 Other Information

In this portfolio valuation exercise, we have been furnished with the following information by Client:

(1) Last 3 years profit and loss accounts for each asset to include occupancy and average achieved apartment rates. (2) Schedule of accommodation and break down of apartment types and sizes (3) Summary report on title detailing the tenure/ownership structure for each property and any sub lettings. (4) Summary capital expenditure over last 3 years and planned. (5) Net Floor $UHD ³1F$´ RIHDFK European property. (6) 1HW/HWWDEOH$UHD ³1/$´ RI6LQJDSRUHDQG+DQRL9LHWQDPSURSHUWLHV

G - 4 4 5. Valuer Details and Inspection

This portfolio exercise has been a combination of UK, European, Singapore and Vietnam offices of Savills, and co-ordination has been undertaken by Daniel Ee (Director) of Savills (Singapore) Pte Ltd.

The inspections and due diligence enquiries, along with opinions of value, have been undertaken by the following valuers, who have the necessary qualifications and authorisation in their respective territories:

Kevin Lau, Associate ± Savills London Giles Furze, Associate ± Savills London Adrian Archer, Director ± Savills London Simon Orr, Director ± Savills London Stephane Peybernes, Director ± Savills Paris Christian Glock, Director ± Savills Berlin Max Gill, Director ± Savills Madrid Huynh Huu Loc, Associate Director ± Savills Vietnam Neil MacGregor, Deputy Managing Director ± Savills Vietnam Liaw Hin Sai, Senior Associate Director ± Savills Singapore

We are pleased to enclose herewith our valuation certificates for your attention.

Yours faithfully For and on behalf of Savills Commercial Properties Limited

Jessie Yeo MSISV $SSUDLVHU¶V/LFHQFH1R.: AD041-2002061K Executive Director, Consultancy & Valuation

encl (28 valuation certificates)

G - 5 5 VALUATION CERTIFICATE

Address of Citadines Singapore Mount Sophia Property 8 Wilkie Road #01-26 Wilkie Edge Singapore 228095

Tenure Leasehold 96 years 3 months and 3 days commencing from 17 November 2008

Location The property is part of a mixed commercial cum serviced residences development prominently located at the junction of Wilkie Road and Selegie Road in the downtown area of Singapore in close proximity to 2UFKDUG5RDGWKHFLW\¶VSUHPLHUVKRSSLQJKRWHODQGHQWHUWDLQPHQWEHOW DVZHOODVWRWKH&LYLF'LVWULFWKRPHWRVRPHRIWKHFRXQWU\¶VSULQFLSDO public institutions such as the National Museum of Singapore, National Library Building and Singapore Management University. The Raffles Place/ Shenton Way financial district is within a 2km radius and readily accessible. There is easy access to two Mass Rapid Transit stations namely Bugis and Dhoby Ghaut.

Brief Description The property is a serviced residence development occupying part of the 1st and 2nd storeys and 6th up to 12th storeys of Wilkie Edge, an integrated development which also comprises street-level shops and office tower apart from the subject serviced residences.

The property is held as a strata-titled unit with a strata lot area of 10,238 sq metres. In total, there are 154 units of studio, 1-bedroom and 2-bedroom apartments.

Common facilities include a main reception lobby, a business centre, a UHVLGHQWV¶lounge, a self-service laundrette and a gymnasium. Season car parking is available at the basement car park of Wilkie Edge.

We have been provided with the net lettable area of the property of 7,015 sq m.

Gross Market S$ 104,000,000 Value as at (One Hundred And Four Million Singapore Dollars) 1 July 2010

G - 6 VALUATION CERTIFICATE

Address of Somerset Hoa Binh, Hanoi Property 160 Hoang Quoc Viet Street, Hanoi, Vietnam

Tenure Leasehold 36 years ending April 2042

Location The property is located in Cau Giay Ward, Ha Noi, the capital of Viet Nam with the population of 6.45 million at April 1, 2009. It is within a mixed development of retail, residential and office towers, close to business and financial districts, restaurants, shopping and the entertainment available in Hanoi.

Brief Description The serviced apartment building is twenty six (26) levels in total (including the basements and mezzanine). The property comprises 206 units of studio, 1-bedroom and 2-bedroom apartments ranging from 45 sq m to 117 sq m.

The two basements contain a car park and technical area. The ground floor has the main reception area. The facilities such as the coffee shop, children playground, private kindergarten, restaurant, gym area, beauty salon and etc are located from the first to fourth floor.

We have been provided with the net lettable area of the property of 14,330 sq m.

Gross Market US$ 39,500,000 Value as at (Thirty Nine Million And Five Hundred Thousand US Dollars) 1 July 2010

G - 7 VALUATION CERTIFICATE

Address of Citadines Lille Centre Property Avenue Willy Brandt ± Euralille 59777, Lille, France

Tenure Freehold

Location The property is located 200 metres East of Lille town centre, on the Avenue Willy Brandt, mid-way between the Lille Flandres and Lille Europe railway stations and backing onto the Euralille shopping centre.

There are 2 public car parks in immediate proximity along Avenue Willy Brandt, including the Euralille car park.

Brief Description The property comprises the majority of a 16-storey tower block complex, namely all floors except floors 14 to 16 which comprise privately owned apartments. A basement floor provides access to the shared Euralille car park.

The ground floor contains a reception lobby, dual lift lobby, general office and PDQDJHU¶VRIILFH. At the first floor, there is a small breakfast area with an adjoining kitchen. The boilers are located on the second and third floors. The fourth floor houses two conference rooms. There are a total of 101 units of studio, 1-bedroom and 2-bedroom apartments from the fifth floor upwards.

We have been provided with the net floor area of the property of 3,863 sq m.

Gross Market ¼ Value as at (Six Million Two Hundred And Forty Thousand Euros) 1 July 2010

G - 8 VALUATION CERTIFICATE

Address of Citadines Grenoble Property 9-11 rue de Strasbourg 38000 Grenoble, France

Tenure Freehold

Location Grenoble has a population of 240,000 and is located in south-eastern France, in the Rhône Alpes region. Grenoble is known as the capital of the French Alps and is surrounded by major ski stations. The city is also one of the most important research centres in France.

The property is located in the administrative area (Conseil general, CCI, Mairie etc) which also includes residential and retail. The major commercial area can be reached in 10 minutes (or 1,200 m) and the TGV station in 15 minutes.

Brief Description The building comprises a 7 storey property with a basement level. The shop situated to the right of the entrance is not included in our valuation.

The entrance looks out over the public areas and the reception area, which leads to the breakfast room and the garden. There are 107 units of studio and 1-bedroom apartments.

This valuation includes the 106 apartments owned by Place de Metz.

We have been provided with the net floor area of the property of 4,657 sq m.

Gross Market ¼ Value as at (Eight Million Six Hundred And Ninety Thousand Euros) 1 July 2010

G - 9 VALUATION CERTIFICATE

Address of Citadines Paris Louvre Property 8 rue de Richelieu, 75001 Paris, France

Tenure Freehold

Location The property is located in the 1st arrondissement of Paris, near the ³3DODLV5R\DO´VTXDUHWKH/RXYUH0XVHXPDQGWKH&RPHGLH)UDQoDLVH theatre.

This is a very central location in the French capital close to the Pyramide of the Louvre, at the corner formed by the rue de Richelieu. The property is more specifically located at the corner of the rue de Richelieu and the rue Montpensier in front of the headquarters of the ³FRQVHLOFRQVWLWXWLRQQHO´RIWKH)UHQFKUHSXEOLF

Public transport is good including several bus lines alongside the rue de Rivoli and also with metro lines N°1 and N°7.

Brief Description The property comprises a rectangular building built over a single basement, a ground floor and seven upper floors.

The basement comprises several cellars used for plant & machinery, laundry, boilers and workshop. The ground floor has a pleasant reception area which connects with a large breakfast room on the road the Montpensier side. There are two shops on the ground floor with direct access from the street.

The upper floors contain the 51 units of studios and 1-bedroom apartments.

We have been provided with the net floor area of the property of 3,373 sq m.

Gross Market ¼ Value as at (Twenty One Million Five Hundred And Eleven Thousand Euros) 1 July 2010

G - 10 VALUATION CERTIFICATE

Address of Citadines Paris Trocadéro Property 29 bis, rue Saint-Didier, 75116 Paris, France

Tenure Freehold

Location The property is located in the north-east part of the 16th arrondissement of Paris in one of the most luxurious areas of the French capital. The SURSHUW\ LV PRUH SUHFLVHO\ ORFDWHG LQ WKH ³&KDLOORW´ DUHD FORVH WR WKH avenue Raymond Poincaré, at a 300 metre distance from the Trocadero square.

Public transport facilities are provided with several bus lines and the PHWURVWDWLRQ³%RLVVLqUH´ZKLFKLVDURXQGPHWUHVIURPWKHSURSHUW\

Brief Description The property is configured with two adjacent buildings built over seven levels of common underground car parking, ground floor and six upper floors.

The main building fronts rue Saint Didier and incorporates an Italian UHVWDXUDQW ³2]LR´ 7KHPDLQHQWUDQFHRIWKHKRWHOLVLQWKHPLGGOHRI this frontage, and car park access is also from this side.

The basement contains underground car parking area, plant and back- of-house areas. The ground floor includes a large common reception area for both buildings, breakfast room and a management office. The upper floors of both linked buildings contain 97 units of studio, 1- bedroom and 2-bedroom apartments.

We have been provided with the net floor area of the property of 4,511 sq m.

Gross Market ¼18,000 Value as at (Twenty Nine Million Two Hundred And Eighteen Thousand Euros) 1 July 2010

G - 11 VALUATION CERTIFICATE

Address of &LWDGLQHV/\RQ3UHVTX¶île Property 2 rue Thomassin, 69002 Lyon, France

Tenure Freehold

Location The property is located in Lyon, a city in east-central France with a population of approximately 500,000. The property is situated in the district of the 3UHVTX¶île (literally the "peninsula"), an area with cafés, restaurants, luxury shops, department stores, banks, government buildings, and cultural institutions.

The property is within walking distance to the metro stations Cordeliers- Bourse and Place Bellecour.

Brief Description The property is arranged over six basement levels, ground and eight upper floors. The basement levels are dedicated for car parking area.

The ground floor comprises reception area, business centre, breakfast area and management office. The upper floors accommodate a total of 116 units of studio and 1-bedroom apartments.

We have been provided with the net floor area of the property of 5,973 sq m.

Gross Market ¼ Value as at (Thirteen Million Two Hundred And Thirty Thousand Euros) 1 July 2010

G - 12 VALUATION CERTIFICATE

Address of &LWDGLQHV3DULV3ODFHG¶,WDOLH Property 18 SODFHG¶,WDOLH, 75013 Paris, France

Tenure Freehold

Location & The property is located in the 13th arrondissement of Paris, at the foot Situation RI3ODFHG¶,WDOLHGLVWULFW ZKLFK LVKRPH WRWKH ,WDOLH VKRSSLQJFHQWUH 3DULV¶VPDLQµFKLQDWRZQ¶LVDOVRORFDWHGLQWKLVDUHD2WKHUDWWUDFWLRQVLQ the area include the Jardin des Plantes, the Museum of Natural History, *UDQGH %LEOLRWKqTXH )UDQFH¶V 1DWLRQDO /LEUDU\ DQG %HUF\ 6SRUWV arena.

Public transport facilities are provided by several bus lines and the 0HWURVWDWLRQ3ODFHG¶,WDOLH OLQHV ZKLFKIURQWV the Citadines Hotel.

Brief Description The property is configured over two levels of basement, ground and eight upper floors. The main entrance is accessible from rue Bobillot.

The property provides 169 apartments, with a combination of studio and 1-bedroom units. There is no designated car parking area.

The first basement is occupied by the shopping centre - Italie 2 and the second basement is used the back-of-house areas. The ground floor has the main reception area, a large lobby and management offices. The first floor is equipped with a breakfast room, two meeting rooms and coin laundry. The second to eight floors house 169 apartments.

We have been provided with the net floor area of the property of 7,090 sq m.

Gross Market ¼ Value as at (Twenty Seven Million Four Hundred And Eighty Thousand Euros) 1 July 2010

G - 13 VALUATION CERTIFICATE

Address of Citadines Paris Montmartre Property 16 avenue Rachel, 75018 Paris, France

Tenure Freehold

Location The property is located in the 18th arrondissement of Paris. The property is more precisely located in the north of Paris at the foot of 0RQWPDUWUH¶VKLOOFORVHWRWKHFHPHWHU\LQWKHDUHDRIWKH&OLFK\DQG Pigalle squares. This area is recognised as a tourist-dominated district.

Public transport facilities are provided with several bus lines and the PHWURVWDWLRQ³3ODFHGH&OLFK\´

Brief Description The property is configured over three levels of underground car parking, a ground floor and eight upper floors. The main façade fronts avenue Rachel and provides car park access.

The basement contains underground car parking spaces, plant and back of house areas (cloakroom, laundry and workshop).

The ground floor incorporates the reception area, breakfast room and management offices. The upper floors of both linked buildings contain the 113 units of studio and 1-bedroom apartments.

This valuation includes the 111 apartments owned by SNC Rachel.

We have been provided with the net floor area of the property of 4,079 sq m.

Gross Market ¼ Value as at (Seventeen Million Eight Hundred And Seventy Thousand Euros) 1 July 2010

G - 14 VALUATION CERTIFICATE

Address of Citadines Paris Tour Eiffel Property 132 boulevard de Grenelle, 75015 Paris, France

Tenure Freehold

Location The property is located in the 15th arrondissement of Paris, at its boundary with the 7th arrondissement, approx. 1.5km from the Eiffel Tower via the Champs de Mars park. The property is more specifically located at the corner of boulevard de Grenelle and the rue du Commerce in front of the Motte Piquet Grenelle station of the aerial metro line N°6.

Public transport facilities are provided with bus line N°80 (with a stop in IURQW RI WKH UHVLGHQFH DQG ZLWK WKH PHWUR VWDWLRQ ³0RWWH 3LTXHW GrenellH´IURQWLQJWKHSURSHUW\

Brief Description The property comprises a large corner building arranged over two basement levels, a ground floor and part five upper floors on the rue du Commerce frontage and part seven upper floors on the boulevard de Grenelle frontage.

There are three shops on the ground floor with access directly from the ERXOHYDUGDVXVKLEDUD0DF'RQDOG¶VDQGD*DSVWRUH

The basement contains underground car parking spaces, plant & machinery and back of house areas. The ground floor has a large reception area and management offices. The breakfast room is at the first floor. The upper floors contain 104 units of studio and 1-bedroom apartments.

We have been provided with the net floor area of the property of 5,380 sq m.

Gross Market ¼19,000 Value as at (Thirty Seven Million Seven Hundred And Nineteen Thousand Euros) 1 July 2010

G - 15 VALUATION CERTIFICATE

Address of Citadines Montpellier Antigone Property 588 ERXOHYDUGG¶$QWLJRQH, 34000 Montpellier, France

Tenure Freehold

Location The property is located in the heart of Antigone, the urban district to the east of the town hall and close to the Polygone shopping centre.

Access via public transport is excellent. The tramway is located within a short distance from the hotel (link with SNCF station of Montpellier in 8 minutes).

Brief Description Consisting of two adjoining buildings, the property is constructed over basement, ground floor and three upper levels.

The property has an underground car park and a main reception area, two breakfast rooms, business corner, management offices and indoor garden on the ground floor. The first to third floors house 122 units of studio, 1-bedroom and 2-bedroom apartments.

We have been provided with the net floor area of the property of 5,575 sq m.

Gross Market ¼ Value as at (Eight Million Eight Hundred And Seventy Thousand Euros) 1 July 2010

G - 16 VALUATION CERTIFICATE

Address of Citadines Marseille Castellane Property 60 rue du Rouet, 13006 Marseille, France

Tenure Freehold

Location The property is located in the city of Marseille (population: 852,395) in the Bouches-du-5KRQHµGHSDUWPHQW¶0DUVHLOOHLVORFDWHGRQWKHVRXWK HDVWHUQFRDVWRI)UDQFHDQGLV)UDQFH¶VODUJHVWFRPPHUFLDOSRUW

More specifically, the property is located in the Castellane district (6th), in the heart of the town and is parallel to Avenue du Prado. There are WZRPHWURVWDWLRQV³3pULHU´DQG³&DVWHOODQH´ORFDWHGPWRWKHVRXWK and 450 m to the north respectively.

Brief Description The property is arranged over ground and four upper floors, together with a basement level (used as car parking).

The main reception area, a business corner, breakfast area and management offices are located on the ground floor.

There are a total of 97 units of studio and 1-bedroom apartments.

We have been provided with the net floor area of the property of 3,974 sq m.

Gross Market ¼ Value as at (Six Million Eight Hundred And Ninety Thousand Euros) 1 July 2010

G - 17 VALUATION CERTIFICATE

Address of Citadines Paris Austerlitz Property 27 rue Esquirol, 75013 Paris, France

Tenure Freehold

Location The property is located in the 13th arrondissement of Paris, a short distance to the north-HDVWRI3ODFHGHO¶,WDOLHZKLFKFRQWDLQVWKH,WDOLH shopping centre. Other attractions in the area include the Jardin des Plantes, the Museum of Natural History and the Grande Bibliothèque )UDQFH¶V1DWLRQDO/LEUDU\ DQG%HUF\6SRUWVDUHQD

Public transport facilities are provided by several bus lines, underground stations namely Nationale station (line 6) and Campo Formio (line 5) and Austerlitz train station.

Brief Description The property is configured over basement, ground and six upper floors and offers 49 units of studio and 1-bedroom apartments.

The main reception area, breakfast room, a business corner and management offices can be found on the ground floor. The basement contains back-of-house areas. The first to sixth floors house the apartments.

We have been provided with the net floor area of the property of 1,827 sq m.

Gross Market ¼ Value as at (Six Million One Hundred And Fifty Thousand Euros) 1 July 2010

G - 18 VALUATION CERTIFICATE

Address of Citadines Paris Voltaire République Property 75 bis, avenue Parmentier, 75011 Paris, France

Tenure Freehold

Location The property is located in the 11th arrondissement of Paris. The property is more precisely located in the east of Paris, halfway between the Place de la République and the Père-Lachaise in a lively and popular district. The property is located close to several means of public transport.

Brief Description Comprising two adjoining buildings with underground car parking, the property has a total of 76 units of studio and 1-bedroom apartments. The main façade is to avenue Parmentier which also provides the car park access.

The upper ground floor has the main reception area, a small lobby and management offices. The lower ground floor is equipped with a breakfast room, coin laundry and lavatories.

We have been provided with the net floor area of the property of 3,217 sq m.

Gross Market ¼ Value as at (Twelve Million One Hundred And Forty Thousand Euros) 1 July 2010

G - 19 VALUATION CERTIFICATE

Address of Citadines Paris Maine-Montparnasse Property 67 avenue du Maine, 75014 Paris, France

Tenure Freehold

Location The property is located in the 14th arrondissement of Paris. The property is more precisely situated in the south of Paris, close to 0RQWSDUQDVVH¶V UDLOZD\VWDWLRQ ORFDWHGDILYH PLQXWH ZDON DZD\IURP WKH UHVLGHQFH 7KH VKRSSLQJ FHQWUH ³*DLWp´ is located in front of the subject property.

Public transport facilities are provided by several bus lines, a metro station (Gaité ± line 13) and Montparnasse Bienvenue (lines 4, 6, 12 & 13).

Brief Description The property is configured over two basements, ground and eight upper floors and comprises an aparthotel offering a total of 67 units of studio and 1-bedroom apartments.

The main reception area, one breakfast room together with an external patio, a business corner and management offices can be found on the ground floor. The first basement is used as a coin laundry and meeting room. The second basement is a car parking area. The apartments are housed on the first to eighth floors.

We have been provided with the net floor area of the property of 2,123 sq m.

Gross Market ¼ Value as at (Nine Million Two Hundred And Sixty Thousand Euros) 1 July 2010

G - 20 VALUATION CERTIFICATE

Address of Citadines Marseille Prado Chanot Property 9-11 boulevard de Louvain, 13008 Marseille, France

Tenure Freehold

Location The property is located in the town of Marseille (population: 852,395) in the Bouches-du-Rhone department (13). More precisely, the property is located within the wealthy district of Prado, in the heart of the city.

The immediate surroundings comprise residential houses, office EXLOGLQJV ORFDWHGLQWKHVDPHFRPSOH[ DILUHVWDWLRQDQG6W-RVHSK¶V hospital. The restaurants, bars and metro station are located approximately 500 m to the south.

Brief Description The property is arranged over 8 upper floors and a ground floor with one basement level (used as a car parking).

The main reception area, breakfast area and management offices can be found on the ground floor. There are a total of 77 units of studio and 1-bedroom apartments.

We have been provided with the net floor area of the property of 3,310 sq m.

Gross Market ¼ Value as at (Six Million And Nine Hundred Thousand Euros) 1 July 2010

G - 21 VALUATION CERTIFICATE

Address of Citadines Paris Les Halles Property 4 rue des Innocents, 75001 Paris, France

Tenure Freehold

Location The property is located in the 1st arrondissement of Paris. Located in the heart of Paris at the foot of the Forum des Halles, close to the famous contemporary art museum ± Centre Pompidou, and the Place du Châtelet theatres, not far from the Ile de la Cité., the area is recognised as a tourist district.

Public transport facilities are provided by several bus lines, metro and WKH 5(5 VWDWLRQ ³&KkWHOHW OHV +DOOHV´ OLQHV DQG 5(5 lines A, B, D).

Brief Description The property, which adjoins the Novotel and was constructed over the four levels of Forum des Halles, is configured over ground and seven upper floors. The main entrance is accessible from rue des Innocents.

The property is constructed over ground and seven upper levels. The main reception area, large lobby, meeting room, private patio, office manager and housekeepers office are located on the ground floor. The first floor is mainly equipped with two meeting rooms, the breakfast room, the workshop and a business corner. The second to seventh floors contain the 189 units of studios and 1-bedroom apartments.

We have been provided with the net floor area of the property of 9,207 sq m.

Gross Market ¼ Value as at (Forty Three Million And Three Hundred Thousand Euros) 1 July 2010

G - 22 VALUATION CERTIFICATE

Address of Citadines Paris Didot Alésia Property 94 rue Didot, 75014 Paris, France

Tenure Freehold

Location The property is located in the 14th arrondissement of Paris, the French capital city. The property is more precisely in the south of Paris, close to the Porte de Versailles Exhibition Park. Alesia is a pleasant residential district with a student population and has numerous shops and markets.

Public transport facilities are provided by several bus lines and metro station (Plaisance ± line 13) and tramway n°3 (Didot).

Brief Description The property is configured over a basement, ground and six upper floors. The main entrance is from rue Didot.

The property consists of an aparthotel offering a total of 80 units of studio and 1-bedroom apartments. The ground floor comprises the main reception area, a large lobby, a meeting room, a business corner, WKH EUHDNIDVW URRP DQG WKH PDQDJHU¶V RIILFH The first to sixth floors house the 80 apartments.

We have been provided with the net floor area of the property of 3,518 sq metres.

Gross Market ¼ Value as at (Thirteen Million Three Hundred And Thirty Thousand Euros) 1 July 2010

G - 23 VALUATION CERTIFICATE

Address of Citadines Cannes Carnot Property 1 rue le Poussin, 06400 Cannes, France

Tenure Freehold

Location Cannes is a popular tourist city on the French Riviera, and famous for hosting the annual Cannes Film Festival. The property is located in the centre of Cannes, opposite the District Court, 500 metres from the Cannes' famous Croisette Carnot and, in particular, from the Palais des Festivals.

The public transportation access is satisfactory with the property situated in relatively close proximity to the train station (SNCF station around 250 metres away) and with the shuttle station allowing easy access to the surrounding cities and to Nice airport (shuttle service around 700 metres away).

Brief Description The property comprises two buildings with 58 units of studio and 1- bedroom apartments and 2 basement levels of car parking spaces.

The ground floor houses a lobby with reception, a breakfast room, back-of-house areas, an accessible inner garden and a sundeck on the fifth floor.

We have been provided with the net floor area of the property of 2,139 sq m.

Gross Market ¼ Value as at (Five Million Four Hundred And Ten Thousand Euros) 1 July 2010

G - 24 VALUATION CERTIFICATE

Address of Citadines London Barbican Property 7±21 Goswell Road, London EC1M 7AH, United Kingdom

Tenure Freehold

Location The property is located in the Barbican area of central London on the QRUWKHUQIULQJHRIWKH&LW\RI/RQGRQWKH8.¶VSULQFLSDOILQDQFLDOKXE

The property is situated on Goswell Road approximately 200 metres north of Barbican Tube Station (on the Circle, Hammersmith & City and Metropolitan Lines). The Barbican Centre, a major arts and conference venue, is within close proximity.

Brief Description The property is configured over basement, ground and seven upper floors. The main façade is on Goswell Road and there is rear access for deliveries and car parking via Glasshouse Yard, to the south of the property.

The basement contains car parking spaces and back of house areas. The ground floor area contains the main reception, lift lobby, breakfast URRP ORXQJHPHHWLQJ DUHD :&¶V DQG EUHDNIDVW NLWFKHQ Part of the ground floor is designated for office use.

There are 129 units of studio and 1-bedroom apartments on the first to seventh floor.

We have been provided with the net floor area of the property of 6,158 sq m.

Gross Market £ 36,820,000 Value as at (Thirty Six Million Eight Hundred And Twenty Thousand Pounds 1 July 2010 Sterling)

G - 25 VALUATION CERTIFICATE

Address of Citadines London South Kensington Property 35A Gloucester Road, London SW7 4PL, United Kingdom

Tenure Freehold

Location The property is located in the Royal Borough of Kensington & Chelsea. The area is heavily residential and also home to several cultural destinations, various embassies, institutions and upmarket shopping areas.

The property is situated on the junction of Gloucester Road and Elvaston Place, approximately 200 metres north of Gloucester Road Tube Station (on the Circle and District Lines). Numerous bus routes operate in the area which provide alternative routes to Notting Hill, Kensington High Street, Chelsea and the West End.

Brief Description The property is configured over basement, ground and six upper floors.

The basement contains a car park, management offices and back-of- house areas. The ground floor was under renovation during our inspection, but is projected to include a large reception and lounge area with management offices and store to the rear.

The upper floors contain a total of 92 refurbished units of studio and 1- bedroom apartments.

There are two retail units of 85 sq m and 277 sq m, leased to Starbucks and Med Kitchen respectively.

We have been provided with the net floor area of the property of 5,430 sq m.

Gross Market £ 36,860,000 Value as at (Thirty Six Million Eight Hundred And Sixty Thousand Pounds Sterling) 1 July 2010

G - 26 VALUATION CERTIFICATE

Address of Citadines London Trafalgar Square Property 18-21 Northumberland Avenue, London WC2N 5EA, United Kingdom

Tenure Freehold

Location The property is located on Northumberland Avenue which is located in WKHKHDUWRI/RQGRQ¶VFXOWXUDOSROLWLFDODQGLQVWLWXWLRQDOKXERIFHQWUDO London. The road itself provides a major vista towards Trafalgar Square and enjoys excellent access to the Embankment and Charing Cross Underground and Overland Rail Stations.

0RVW RI/RQGRQ¶V PDMRU WRXULVW DWWUDFWLRQVDUH RQWKHGRRUVWHS RI WKLV property. These include the Houses of Parliament, Westminster Abbey, Whitehall, Buckingham Palace, London Eye and the National Gallery.

Brief Description The property is configured over sub basement, basement, ground, mezzanine and eight upper floors. The main façade is on Northumberland Avenue and the underground car park and service areas can be accessed from Craven Street.

The basement contains the car park, plant rooms and back-of-house areas. The ground floor comprises reception area, business centre, breakfast area and management office. There are a total of 187 units of studio, 1-bedroom and 2-bedroom apartments on the upper floors.

We have been provided with the net floor area of the property of 8,977 sq m.

Gross Market £66,500,000 Value as at (Sixty Six Million And Five Hundred Thousand Pounds Sterling) 1 July 2010

G - 27 VALUATION CERTIFICATE

Address of Citadines London Holborn-Covent Garden Property 94-99 High Holborn, London WC1V 6LF, United Kingdom

Tenure Freehold

Location The property is located in the heart of London - (QJODQG¶VFDSLWDOFLW\ and a major global centre for commerce and culture. It is situated in the KHDUWRI/RQGRQ¶VµPLG-WRZQ¶7KLVDUHDLVEHWZHHQWKHPDMRUEXVLQHVV districts of the City and West End and is recognised as a major legal and commercial centre in its own right.

Brief Description The property is configured over basement, ground and seven upper floors. The main façade is on High Holborn and access to car park and service areas at the rear are via Eagle Street.

The basement contains a car park, plant and back-of-house areas. The ground floor has the main reception area, 3 meeting rooms and management offices. The apartments are housed on the first to sixth floors. The main air handling and lift plant are located on the seventh floor.

There are a total of 192 units of studio and 1-bedroom apartments.

Part of the ground floor and basement areas at the southern portion of the building (fronting High Holborn) are demised to three commercial tenants.

We have been provided with the net floor area of the property of 8,403 sq m.

Gross Market £62,600,000 Value as at (Sixty Two Million And Six Hundred Thousand Pounds Sterling) 1 July 2010

G - 28 VALUATION CERTIFICATE

Address of Citadines Bruxelles Sainte-Catherine Property 51 Quai au Bois à Brûler, 1000 Bruxelles, Belgium

Tenure Freehold

Location The property is situated within a predominantly residential area within the heart of the historic centre which forms part of the commune of Brussels. More specifically, the property is located at the junction of Rolstraat and Quai au Bois à Brûler.

The mHWUR VWDWLRQ 6DLQWH &DWKHULQH LV ORFDWHG RQ WKH SURSHUW\¶V doorstep, providing direct connections to Brussels main office districts and national and international train stations.

Brief Description The property comprises a complex of three serviced apartment buildings. There is a total of 169 units of studio and 1-bedroom apartments.

Building 1 is arranged over basement, ground and six upper floors. It comprises apartments spread out over the first to sixth floors. The basement contains a car park and pump/mechanical rooms. The ground floor consists of the main reception area, management offices, EUHDNIDVWURRPDQGUHWDLOXQLWRIILFHVSDFHRIVTP7KHEXLOGLQJ¶V air handling and lift plant is located on the sixth floor.

Building 2 comprises a five storey mid terraced building configured over ground and four upper floors. It comprises a meeting room (situated on the ground floor) and apartments.

Building 3 is arranged over ground and two upper floors of apartments.

We have been provided with the net floor area of the property of 7,536 sq m.

Gross Market ¼ 16,180,000 Value as at (Sixteen Million One Hundred and Eighty Million Euros) 1 July 2010

G - 29 VALUATION CERTIFICATE

Address of Citadines Bruxelles Toison d¶2r Property 61-63 Avenue de la Toison d¶2r, 1060 Bruxelles, Belgium

Tenure Freehold

Location The property is situated within a mixed residential/retail area within the commune of Saint Gilles. It is located in the Avenue Louise area on the HGJH RI %UXVVHOV¶ LQQHU 5LQJ 5RDG DQG RSSRVLWH %UXVVHOV¶ 3DODFHRI Justice. The Metro stop Louise is located approximately 100 metres from the property and is only three metro stops from the International Midi Station and the European office district (Leopold). The tram is situated in close proximity to the metro station and serves the City Centre, Avenue Louise and the South of Brussels.

Brief Description The property comprises a 10 storey mid terrace aparthotel building comprising 153 units of studio, 1-bedroom and 2-bedroom apartments. It is arranged over ground and 9 upper floors with 3 basement floors.

The property features a reception area, a breakfast lounge and a small business centre on the ground floor along with a large conference room on the top floor.

The car park is arranged over the 3 basement levels.

We have been provided with the net floor area of the property of 8,662 sq m.

Gross Market ¼ 13,910,000 Value as at (Thirteen Million Nine Hundred And Ten Thousand Euros) 1 July 2010

G - 30 VALUATION CERTIFICATE

Address of Citadines Berlin Kurfürstendamm Property Olivaer Platz 1, 10707 Berlin-Wilmersdorf, Germany

Tenure Freehold

Location Berlin is the capital, with its population of 3.4 million, also the largest city in Germany.

The subject property is located in central Berlin at Olivaer Platz, approximately 200m to the south of the famous retail highstreet ³.XUIUVWHQGDPP´$WD[LVWDQGLVVLWXDWHGDGMDFHQWWo the building. The XQGHUJURXQGUDLOZD\VWDWLRQ³$GHQDXHUSODW]´LVPWRWKHZHVW'XH to the central position of the subject property in Berlin, there are a large number of hotels as well as several bars and restaurants in the surrounding area.

Brief Description The property comprises eight storeys (ground plus seven levels), together with a basement.

The basement level contains an underground car park. The ground floor houses a reception area, small lounge, breakfast area and a small retail unit currently leased to a restaurant. The upper floors accommodate 118 units of studio and 1-bedroom apartments.

We have been provided with the net floor area of the property of 5,480 sq m.

Gross Market ¼11,270,000 Value as at (Eleven Million Two Hundred And Seventy Thousand Euros) 1 July 2010

G - 31 VALUATION CERTIFICATE

Address of Citadines Munich Arnulfpark Property Arnulfstrasse 51, 80636 München, Germany

Tenure Freehold

Location The property is situated in Munich, the regional capital of the federal state of Bavaria in the south of Germany. It is located to the north west of Munich city centre which is around 2 km away. The property is situated on the arterial road Arnulfstraße, and in front of a tram station. Munich main railway station and the city centre can be reached easily via tram. The surrounding area is characterised by a combination of residential and office buildings, with a handful of bars and restaurants.

Brief Description The property comprises a part six and seven storey building with a basement level. The basement is used as an underground car park, several storage units and technical rooms.

The property has a reception area, lounge, breakfast area, conference room and fitness room. The property contains 146 units of studio, 1- bedroom and 2-bedroom apartments.

We have been provided with the net floor area of the property of 6,502 sq m.

Gross Market ¼250,000 Value as at (Twenty One Million Two Hundred And Fifty Thousand Euros) 1 July 2010

G - 32 VALUATION CERTIFICATE

Address of Citadines Barcelona Ramblas Property Ramblas 122, 08002, Barcelona, Spain

Tenure Freehold

Location Barcelona is located in north-eastern Spain, is the capital of Catalonia, second largest city in the country and an important centre for commerce and tourism.

The property is located in the centre of the city, on the Ramblas, %DUFHORQD¶V SULQFLSDO WRXULVt avenue and in close proximity to the old town and a number of important tourist sites.

Brief Description The property comprises two separate but interconnected buildings known as Vila Ramblas Building and Vila Madrid Building.

The basement contains a car park configured over four basement levels. The plant and back-of-house areas are also located on the basement. The ground and first floors house the main reception area, cafeteria and management offices. Accommodation is provided over six upper floors.

There are a total of 131 units of studio and 1-bedroom apartments.

Part of the ground floor to the rear of the reception area comprises separate commercial units which make up the retail gallery and are accessed from the pedestrian passageway off the Ramblas.

We have been provided with the net floor area of the property of 6,440 sq m.

Gross Market ¼40,000 Value as at (Thirty Six Million Four Hundred And Forty Thousand Euros) 1 July 2010

G - 33 Valuation Certificates Portfolio of 28 Serviced Apartments Various Cities, Asia and Europe

Submitted to: Ms Yeong Lai Meng Senior Vice-President, Finance The Ascott (Europe) Pte Ltd No 8 Shenton Way #13-01 Singapore 068811

Prepared by: HVS Temasek Boulevard, #23-01A Suntec Tower Four, Singapore 038986

Tel: +65 6293 4415 Fax: +65 6293 5426

16 August 2010

HVS No: 2010120009

G - 34 16 August 2010

Ms Yeong Lai Meng Senior Vice-President, Finance The Ascott (Europe) Pte Ltd No 8 Shenton Way #13-01 Singapore 068811

Dear Ms Yeong,

RE: VALUATION CERTIFICATES FOR PORTFOLIO OF 28 SERVICED APARTMENTS IN ASIA AND EUROPE

We are pleased to submit to you our Valuation Certificates for the following properties:-

Table 1 Portfolio of 28 Serviced Apartments to be Valued

Country Property Country Property

Singapore Citadines Singapore Mount Sophia Citadines Marseille Prado Chanot Vietnam Citadines Paris Les Halles Somerset Hoa Binh, Hanoi Citadines Paris Didot Alésia France Citadines Cannes Carnot Citadines Lille Centre United Kingdom Citadines Grenoble Citadines London Barbican Citadines Paris Louvre Citadines London South Kensington Citadines Paris Trocadéro Citadines London Trafalgar Square Citadines Lyon Presqu'île Citadines London Holborn-Covent Garden Citadines Paris Place d’Italie Belgium Citadines Paris Montmartre Citadines Bruxelles Sainte-Catherine Citadines Paris Tour Eiffel Citadines Bruxelles Toison d'Or Citadines Montpellier Antigone Germany Citadines Marseille Castellane Citadines Berlin Kurfurstendamm Citadines Paris Austerlitz Citadines Munich Arnulfpark Citadines Paris Voltaire République Spain Citadines Paris Maine-Montparnasse Citadines Barcelona Ramblas

1.0 Client Brief and Purpose of Valuation

We have been instructed to perform a valuation of the properties as at 1 July 2010 based on their respective existing uses and subject to the existing leases and management agreements. We have inspected the selected representative properties during the month of April in 2010 and have assumed that there are no material changes in the properties between the date of value and the date of inspection.

HVS Singapore (Reg. No. 52885191L) is the trading name of SG&R Singapore Pte Ltd (Reg. No. 199900143N) Page 1 of 3 G - 35 HVS has assessed the property interests as independent international appraisers. We hereby certify that we have no undisclosed interest in the properties and our employment and compensation are not contingent upon our findings and valuations.

2.0 Basis of Valuation

The valuation is prepared in accordance with the International Valuation Standards Committee (‘IVSC’) definition of Market Value, which is:

“The estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties has each acted knowledgeably, prudently and without compulsion.”

Additionally, our assessment will be on the basis of the existing use of the properties only with appropriate approvals and licenses in place.

3.0 Information Utilised

We have been provided with financial, leases and other information relevant to our assessment of the properties and whilst due care has been taken in the application of the information, its accuracy cannot be verified by HVS.

Should it be revealed that any of this information is inaccurate or misleading so that its use would affect the valuations, HVS seeks to be informed of such discrepancies and accordingly reserves the right to amend its opinion of values.

4.0 Use of Valuation Certificates

Neither the whole nor any part of the valuation certificate nor any reference thereto maybe included in any document, circular or statement without our written approval and of the form or context in which it appears.

These valuations has been prepared for the purpose stated above and for use only of the Client and no responsibility is given to any third party for the whole or part of its contents.

5.0 Assumptions and Limiting Conditions

A list of major assumptions made in the valuation of the properties and the limiting conditions under which the opinion is given is detailed in the Addendum to this valuation certificates. It is a condition of the use of the valuations that the recipient of the certificates accepts these statements.

HVS Singapore (Reg. No. 52885191L) is the trading name of SG&R Singapore Pte Ltd (Reg. No. 199900143N) Page 2 of 3 G - 36 G - 37 VALUATION CERTIFICATE

Property : Citadines Singapore Mount Sophia 8 Wilkie Road, #01-26 Wilkie Edge Singapore 228095

Property Interest : Unexpired leasehold interest in the land, buildings and other Valued improvements including furniture, fixtures and equipment.

Tenure : 96 years, 3 months and 3 days, ending on 19 February 2105

Location : The Citadines Singapore Mount Sophia is bounded by Wilkie Road and Selegie Road which run along its southern and eastern fronts, respectively. The subject Property is bounded by residences and low- rise shop houses to the west and north. Changi International Airport is a 20-minute drive away from the Property. Dhoby Ghaut Station and Little India Station, which are part of the subway network, are a 15- minute and ten-minute walk away from the Property, respectively.

Property : The Citadines Singapore Mount Sophia is part of a mixed-use Description development, namely Wilkie Edge. This 12-storey mixed-use development includes offices, retail and food and beverage outlets. The Property comprises 154 apartments ranging from studio to two- bedroom units located on Levels 6 through 12 of a 12-storey tower, which is constructed of a reinforced concrete structure.

Net Lettable Area : 7,015 square metres

Market Value, : S$110 million Existing Use Basis

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 38 VALUATION CERTIFICATE

Property : Somerset Hoa Binh, Hanoi 106 Hoang Quoc Viet Street Hanoi, Vietnam

Property Interest : Unexpired leasehold interest in the land, buildings and other Valued improvements including furniture, fixtures and equipment.

Tenure : 36 years, expiring on 24 April 2042

Location : Located in close proximity to the Hoa Lac High Technology Development Zone, the subject Property is well-accessible to regional companies and financial institutes, as well as the Thang Long Industrial Park. The subject Property is also located within a 15 minutes’ drive to the Central Business District (CBD) of Hanoi.

Property : The subject Property, which forms part of a mixed-use development Description comprising an office tower, is in a strategic location between the CBD of Hanoi and its upcoming industrial parks. Opened in June 2008, the Somerset Hoa Binh is an international standard serviced apartment which features 206 units, two food and beverage outlets, a fitness centre, an executive lounge, a children’s playground and a swimming pool.

Net Lettable Area : 14,330 square metres

Market Value, : US$ 40.0 million Existing Use Basis

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 39 VALUATION CERTIFICATE

Property : Citadines Lille Centre Avenue Willy Brandt - Euralille, 59777 Lille, France

Tenure : Freehold

Location : Citadines Lille Centre is near Lille-Europe railway station, and is thus readily accessible from other cities around Europe, and the UK, via Eurostar. Immediately across the street from the Property is the busy Euralille shopping and business centre, one of the largest in the region. The city's main tourist sites and museums are a short walk away.

Property : Citadines Lille Centre is a serviced apartment property with 101 Description studios, one-bedroom and two-bedroom apartments distributed over nine floors. In addition to bedrooms, the Property has a breakfast room, two meeting rooms and a private car park.

Net Floor Area : 3,863 square metres

Market Value, : €12,300,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 40 VALUATION CERTIFICATE

Property : Citadines Grenoble 9-11 Rue de Strasbourg, 38000 Grenoble, France

Property Interest : Freehold interest, subject to a lease in the land, buildings and other Valued improvements, including furniture, fixtures and equipment, assuming a continuation of the lease under similar terms. Place de Metz (owner) currently owns 106 units out of the 107 available at the Property. Our valuation conclusion reflects the freehold interest subject to a lease in the 106 units owned by Place de Metz (owner).

Tenure : Freehold

Location : In the centre of Grenoble. Citadines Grenoble, which is surrounded by offices and residential developments, is within walking distance of Grenoble's main tourist attractions, including Place de Verdun, the River Isere, the Bastille fortress, the city's modern art museum and several parks. Owing to its central location, the property enjoys good visibility and is easily accessible. After a short drive along the A48 motorway, travellers may reach the natural sites and attractions offered by the Isere region (Vercors, Chartreuse and Belledonne Mountains). A series of business and industrial parks and the international congress centres of Alpexpo and Europole are key to the city's economy and business tourism. Grenoble railway station is five to ten minutes away by car and five to ten minutes from public transport. Grenoble airport is 45 km from the city centre: a 45- minute drive (existing shuttle service).

Property : Citadines Grenoble is a serviced apartment property with 107 studios Description and one-bedroom apartments. In addition to bedrooms, the Property has a breakfast room, an outdoor terrace and an underground car park.

Net Floor Area : 4,657 square metres

Market Value, : €10,400,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 41 VALUATION CERTIFICATE

Property : Citadines Paris Louvre 8 Rue de Richelieu, 75001 Paris, France

Tenure : Freehold

Location : The Citadines Paris Louvre enjoys a superb location on Rue de Richelieu, almost directly opposite the Musee du Louvre and the Jardin des Tuileries. The Comedie-Francaise and Paris Opera are a few minutes away, as are the famed shopping streets of Paris. Access to other areas of the city is extremely convenient via Paris's Metro, with the Musee du Louvre station immediately in front of the Property. The Stock Exchange, banking neighbourhood and the government offices of the Left Bank are within easy reach as well.

Property : Citadines Paris Louvre is a serviced apartment property with 51 studios Description and one-bedroom apartments distributed over seven floors. In addition to its bedrooms, the Property has a breakfast room.

Net Floor Area : 3,373 square metres

Market Value, : €24,600,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 42 VALUATION CERTIFICATE

Property : Citadines Paris Trocadero 29 Bis Rue Saint Didier, 75116 Paris, France

Tenure : Freehold

Location : In a peaceful residential area, this property is only a five-minute walk from the Trocadero. The property is in proximity to the Kleber International Conference Centre and the surrounding businesses. The property is close to the Eiffel Tower, the Musee de l'Homme (Museum of Mankind) and the Musee de la Marine (Maritime Museum) as well as other sights. Orly and Roissy Charles de Gaulle airports can be reached by car within 30 and 50 minutes, respectively.

Property : Citadines Paris Trocadéro is a serviced apartment property with 97 Description studios, one-bedroom and two-bedroom apartments. In addition to its bedrooms, the Property has a breakfast room, a car park and a business corner.

Net Floor Area : 4,511 square metres

Market Value, : €29,400,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 43 VALUATION CERTIFICATE

Property : Citadines Lyon Presqu'ile 2 Rue Thomassin, 69002 Lyon, France

Tenure : Freehold

Location : In the centre of Lyon on the peninsula between the RhOne and SaOne Rivers and surrounded by retail and residential developments, the Citadines Lyon Presqu'ile is within walking distance of the main business and tourism attractions offered by the second French economic agglomeration. A short-walk across the SaOne river to the west leads tourists to the Old Town's monuments and restaurants. Moreover, by crossing the RhOne, business travellers can reach the dynamic district of La Part Dieu, where several companies based in Lyon have their offices. The property's location allows travellers to reach the city's two main train stations, Lyon Part Dieu (to the west) and Lyon Perrache (to the south), within ten minutes by car. Lyon Saint-Exupery Airport (including high-speed train connection) is within 45 minutes' drive. The prominent industrial estate (mainly pharmaceutical and construction companies) of Lyon is to the south and can be accessed by road in 15 minutes from the residence via the A7 motorway.

Property : Citadines Lyon Presqu'ile is a serviced apartment property with 116 Description studios and one-bedroom apartments distributed over eight floors. In addition to bedrooms, the Property has a breakfast room, a business centre, and an underground car park.

Net Floor Area : 5,973 square metres

Market Value, : €11,200,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 44 VALUATION CERTIFICATE

Property : Citadines Paris Place d'Italie 18 Place d'Italie, 75013 Paris, France

Tenure : Freehold

Location : The property is in Chinatown and the Bute aux Cailles villages, a residential area. The property is within walking distance of the Pitié Salpetriere hospital and the Latin quarter as well as the Ecole National des Arts and Métiers. Orly and Roissy Charles de Gaulle airports can be reached by car within 25 and 45 minutes, respectively.

Property : Citadines Paris Place d'Italie is a serviced apartment property with 169 Description studios and one-bed apartments. In addition to its bedrooms, the Property has a breakfast room, and two meeting rooms.

Net Floor Area : 7,090 square metres

Market Value, : €36,900,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 45 VALUATION CERTIFICATE

Property : Citadines Paris Montmartre 16 Avenue Rachel, 75018 Paris, France

Property Interest : Freehold interest subject to a lease in the land, buildings and other Valued improvements including furniture, fixtures and equipment, assuming a continuation of the lease under similar terms. SNC Rachel (owner) currently owns 111 units out of the 113 available at the Property. Our valuation conclusion reflects the freehold interest subject to a lease in the 111 units owned by SNC Rachel (owner).

Tenure : Freehold

Location : Located in Paris's 18th arrondissement in the world famous area of Montmartre, which is north of the city, the Citadines Paris Montmartre benefits from good accessibility via the public transportation network (Place Clichy station only minutes away) as well as its proximity to the Europe and Trinity business districts. The Montmartre area is particularly attractive to tourists with sites including the Butte Montmartre, the Sacré Coeur, the Dali museum and several theatres, cabarets and restaurants (Moulin Rouge is only steps away). The property is surrounded by shops, restaurants, residential buildings and office buildings. Paris's two main international airports, Orly and Roissy Charles de Gaulle, can be reached by car in approximately one hour. Using the train and Metro, travellers are able to reach Paris' main train stations and tourism attractions within ten to 15 minutes.

Property : Citadines Paris Montmartre is a serviced apartment property with 113 Description studios and one-bedroom apartments distributed over eight floors. In addition to bedrooms, the Property has a breakfast room, a business centre, a rooftop sundeck, and indoor parking spaces.

Net Floor Area : 4,079 square metres

Market Value, : €28,300,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 46 VALUATION CERTIFICATE

Property : Citadines Paris Tour Eiffel 132, boulevard de Grenelle, 75015 Paris, France

Tenure : Freehold

Location : A stone's throw from the Champs de Mars and the iconic Eiffel Tower, the Citadines Paris Tour Eiffel enjoys an excellent location near the Seine River and close to major tourist attractions. The UNESCO offices as well as other governmental institutions are also nearby. The neighbourhood immediately surrounding the Property is characterised by small cafés and shops. Access to the Property via Paris's Metro system is very convenient with two Metro stops within five minutes' walk. All the major tourist attractions are within easy reach by Metro.

Property : Citadines Paris Tour Eiffel is a serviced apartment property with 104 Description studios and one-bedroom apartments distributed over seven floors. In addition to its bedrooms, the Property has a breakfast room.

Net Floor Area : 5,380 square metres

Market Value, : €29,900,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 47 VALUATION CERTIFICATE

Property : Citadines Montpellier Antigone 588 Boulevard d'Antigone, 34000 Montpellier, France

Tenure : Freehold

Location : Located in the heart of Antigone, in the centre of Montpellier, the Citadines Montpellier Antigone is close to the city centre's main attractions including the Corum, Place de la Comedie, the Opera and Polygon shopping centre. In addition to its central location, the property is only a 15- to 20-minute drive on the A9 motorway (La Languedocienne) from Montpellier airport and the numerous business and retail parks to the south of the city. The property's surrounding area is dominated by residential and small retail units.

Property : Citadines Montpellier Antigone is a serviced apartment property with Description 122 studios, one-bedroom and two-bedroom apartments distributed over three floors. In addition to bedrooms, the Property has a breakfast room, a business centre, and parking spaces.

Net Floor Area : 5,575 square metres

Market Value, : €6,900,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 48 VALUATION CERTIFICATE

Property : Citadines Marseille Castellane 60 Rue du Rouet, 13006 Marseille, France

Tenure : Freehold

Location : In the centre of Marseille, in one of the city's quality residential areas, the Citadines Marseille Castellane enjoys proximity to Parc Chanot (Congress Centre), which hosts some of the city's major international trade fairs. The property is also within walking distance of the Velodrome stadium. The property's surrounding area is dominated by an expanding residential development area. The property is easily accessible owing to two metro stations (Castellane and Perier) that allow for a ten-minute commute to Marseille Saint Charles train station. Travellers arriving by road can easily access the property by using the A50 motorway, which crosses the city from east to west. The same motorway allows travellers to reach Marseille Provence Airport and the surrounding business and industrial parks in approximately 25 minutes.

Property : Citadines Marseille Castellane is a serviced apartment property with 97 Description studios and one-bedroom apartments distributed over five floors. In addition to bedrooms, the Property has a breakfast room, a business centre and an underground car park.

Net Floor Area : 3,974 square metres

Market Value, : €5,300,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 49 VALUATION CERTIFICATE

Property : Citadines Paris Austerlitz 27 Rue Esquirol, 75013 Paris, France

Tenure : Freehold

Location : Located in Paris' 13th arrondissement between the Seine river and Place d'Italie, the Citadines Paris Austerlitz is close to Gare d'Austerlitz (train station), the Pitie-Salpétriere hospital and Paris Bercy sports arena (concerts and sporting events). Other major attractions within easy reach include the Jardin des Plantes with its Natural History Museum, the Francois-Mitterrand Library and the Institut du Monde Arabe. Although the property's location remains dominated by residential and offices units, and therefore not preferred by tourists, its proximity to the Nationale Metro station allows travellers to access most of central Paris's attractions within 15 to 20 minutes. By driving down Avenue d'Italie, travellers also benefit from quick access to the Paris ring road and all businesses and industrial parks on the periphery of the city.

Property : Citadines Austerlitz is a serviced apartment property with 49 studios Description and one-bedroom apartments distributed over six floors. In addition to bedrooms, the Property has a breakfast room, a garden and outdoor parking spaces.

Net Floor Area : 1,827 square metres

Market Value, : €4,800,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 50 VALUATION CERTIFICATE

Property : Citadines Voltaire Republique 75 Bis Avenue Parmentier, 75011 Paris, France

Tenure : Freehold

Location : This property is in a central residential area, situated halfway between la Republique and Pere Lachaise and is close to the fashionable streets of the Marais. Orly and Roissy Charles de Gaulle airports can be reached by car within 45 minutes.

Property : Citadines Voltaire Republique, Paris is a serviced apartment property Description with 76 studios and one-bed apartments. In addition to its bedrooms, the Property has a breakfast room and a car park.

Net Floor Area : 3,217 square metres

Market Value, : €12,100,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 51 VALUATION CERTIFICATE

Property : Citadines Paris Maine-Montparnasse 67 Avenue du Maine, 75014 Paris, France

Tenure : Freehold

Location : Located in Paris's 14th arrondissement, south of the city, the Citadines Paris Maine-Montparnasse benefits from good accessibility via the public transportation network (Metro, train and buses) as well as proximity to one of the city's most active shopping areas. The Montparnasse area is also home to several businesses and has a large traveller footfall on account of the connections to several destinations in the west of France via Gare Montparnasse train station. The Pasteur Institute (cancer research) and Necker hospital are only a five-minute drive from the property. The property's connectivity to the public transportation network makes it convenient for business travellers commuting to offices in the city centre as well as for leisure travellers visiting the city's main attractions. The property is surrounded by shops, restaurants, residential buildings, and office buildings. Orly airport can be reached by car in approximately 30 minutes, while Roissy Charles de Gaulle airport can be reached in 45 minutes. Using the train and Metro network, travellers will be able to reach Paris's main train stations and tourism attractions within ten to 15 minutes.

Property : Citadines Maine-Montparnasse is a serviced apartment property with Description 67 studios and one-bedroom apartments distributed over eight floors. In addition to bedrooms, the Property has a breakfast room, a meeting room and indoor parking spaces.

Net Floor Area : 2,123 square metres

Market Value, : €14,300,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 52 VALUATION CERTIFICATE

Property : Citadines Marseille Prado Chanot 9-11 Boulevard de Louvain, 13008 Marseille, France

Tenure : Freehold

Location : In the centre of Marseille, in one of the city's quality residential areas, the Citadines Marseille Prado Chanot enjoys proximity to Parc Chanot (Congress Centre), which hosts some of the city's major international trade fairs, and the Saint Joseph Hospital. In addition, the property is within walking distance of the Velodrome stadium. The property's surrounding areas are dominated by an expanding residential development area. The property is easily accessible owing to two metro stations (Castellane and Perier) that allow for a ten-minute commute to Marseille Saint Charles train station. Travellers arriving by road can easily access the property by using the A50 motorway, which crosses the city from east to west. The same motorway allows travellers to reach Marseille Provence Airport and the surrounding business and industrial parks in approximately 25 minutes.

Property : Citadines Marseille Prado Chanot is a serviced apartment property with Description 77 studios and one-bedroom apartments with a balcony. These units are distributed over eight floors. In addition to its bedrooms, the Property has a breakfast room, a business centre, and an underground car park.

Net Floor Area : 3,310 square metres

Market Value, : €3,900,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 53 VALUATION CERTIFICATE

Property : Citadines Paris Les Halles 4 Rue des Innocents, 75001 Paris, France

Tenure : Freehold

Location : In Paris's 1st arrondissement, in the heart of the city, the Citadines Paris Les Halles benefits from excellent accessibility via the public transportation network (Metro, train and buses). The property also benefits from its proximity to the city's main tourism attractions, including Modern Art Museum Pompidou, the Louvre, the old district of Le Marais and Notre Dame cathedral, amongst others. A series of theatres are within walking distance of the property. The property's connectivity to the public transportation network makes it convenient for business travellers commuting from the business district of La Defense and offices in the city centre. The property is surrounded by shops (including Forum des Halles shopping mall), restaurants, cafés and quality residential buildings. Roissy Charles de Gaulle airport can be reached by car or directly by train (RER A) in approximately 30 minutes, while travelling to Orly airport takes 45 minutes. Using the train and Metro network, travellers are able to reach Paris's main train stations within ten to 15 minutes.

Property : Citadines Les Halles is a serviced apartment property with 189 studios Description and one-bedroom apartments distributed over seven floors. In addition to bedrooms, the Property has a breakfast room, three meeting rooms, and a business centre.

Net Floor Area : 9,207 square metres

Market Value, : €57,500,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 54 VALUATION CERTIFICATE

Property : Citadines Paris Didot Alésia 94 Rue Didot, 75014 Paris, France

Tenure : Freehold

Location : Located in Paris' 14th arrondissement, in the south of the city, the Citadines Paris Didot Alésia benefits from great accessibility to roads, such as the Paris ring road, and close proximity to Porte de Versailles exhibition park. On Rue Didot between three hospitals, the property's surrounding environment is quiet and dominated by quality residential units and offices. The location of the property at Paris's city centre limits offers easy access to several business parks located to the southwest of Paris, which host large international corporations such as Thales. Orly Airport can be reached by car in approximately 30 minutes, while travelling to Roissy Charles de Gaulle will take 45 minutes. Direct Metro connections allow travellers to reach Paris Montparnasse and other central train stations in 15 to 25 minutes.

Property : Citadines Didot Alésia is a serviced apartment property with 80 studios Description and one-bedroom apartments distributed over six floors. In addition to bedrooms, the Property has a breakfast room, a business centre and an indoor car park.

Net Floor Area : 3,518 square metres

Market Value, : €16,100,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 55 VALUATION CERTIFICATE

Property : Citadines Cannes Carnot 1 Rue le Poussin, 06400 Cannes, France

Tenure : Freehold

Location : In the centre of Cannes and surrounded by retail and residential developments. Citadines Cannes Carnot is only a ten-minute walk from the world famous Croisette, Palais des Festivals and the prestigious port. Owing to its central location, near Boulevard Carnot, which is the main access road to the city from the motorway, the property is highly visible and easily accessible. Cannes railway station is within walking distance of the property (approximately five minutes) and Nice International Airport is accessible by car within 30 minutes (existing shuttle service).

Property : Citadines Cannes Carnot is a serviced apartment property with 58 Description studios and one-bedroom apartments. In addition to bedrooms, the Property has a breakfast room, an outdoor terrace, a sundeck and an underground car park.

Net Floor Area : 2,139 square metres

Market Value, : €4,200,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 56 VALUATION CERTIFICATE

Property : Citadines London Barbican 7-21 Goswell Road, London EC1M 7AH, UK

Property Interest : Freehold interest in the land, buildings and other improvements Valued including furniture, fixtures and equipment.

Tenure : Freehold

Location : The Citadines London Barbican is just north of the financial and business district in central London, and just around the corner from the Barbican Centre, one of one of Europe's largest cultural centres. The property is 200 meters north of the Barbican Underground station, which provides access to all parts of Central London. The property is located on the A1 road, which connects the city of London with the city of Edinburgh, in Scotland. The property is 25 km from London Heathrow Airport and ten kilometres from London City Airport.

Property : The Citadines London Barbican is a purpose-built serviced apartment Description property with 129 studios and one-bed apartments. In addition to its guest rooms, the Property has a breakfast room, laundry facility, business centre, and access to a private car park.

Net Floor Area : 6,158 square metres

Market Value, : £35,600,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 57 VALUATION CERTIFICATE

Property : Citadines London South Kensington 35A Gloucester Road, London SW7 4PL, UK

Property Interest : Freehold interest in the land, buildings and other improvements Valued including furniture, fixtures and equipment. Although The Ascott (Europe) Pte Ltd has a 65% ownership stake in the property, our valuation conclusion reflects the freehold interest of the property in its entirety.

Tenure : Freehold

Location : The Citadines London South Kensington is in the heart of the most Victorian area in London, surrounded by chic gardens and stylish boutiques and a short walk from Hyde Park, Harrods and Kensington Palace. The property is 400 m north of the Gloucester Road Underground station, which provides access to all parts of Central London. The property is 300 m north of the A4 road, which connects the city of London with the city of Bristol. The property is 19 km from London Heathrow Airport and 16 km from London City Airport.

Property : The Citadines London South Kensington is a purpose-built serviced Description apartment property with 92 studios and one-bed apartments. In addition to its guest rooms, the Property has a laundry facility, a business centre, and parking facilities. The property's premises also include retail space leased to Starbucks Coffee and Med Kitchen

Net Floor Area : 5,430 square metres

Market Value, : £31,800,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 58 VALUATION CERTIFICATE

Property : Citadines London Trafalgar Square 18-21 Northumberland Avenue, London WC2N 5EA, UK

Property Interest : Freehold interest in the land, buildings and other improvements Valued including furniture, fixtures and equipment.

Tenure : Freehold

Location : The Citadines London Trafalgar Square is close to the Thames River, and just a few steps from Nelson's Column in Trafalgar Square, Westminster Abbey, the National Gallery, and a host of national government institutions. The property is less than 150 m from the Embankment and Charing Cross Underground stations, which provide access to all parts of Central London. The property is 200 m east of the A4 road, which connects the city of London with the city of Bristol. The property is 23 km from London Heathrow Airport and 12 km from London City Airport.

Property : The Citadines London Trafalgar Square is a purpose-built serviced Description apartment property with 187 studios, one-bed, and two-bed apartments. In addition to its guest rooms, the property has a breakfast room, a laundry facility, and a business centre.

Net Floor Area : 8,977 square metres

Market Value, : £60,000,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 59 VALUATION CERTIFICATE

Property : Citadines London Holborn Covent Garden 94-99 High Holborn, London WC1V 6LF, UK

Property Interest : Freehold interest in the land, buildings and other improvements Valued including furniture, fixtures and equipment.

Tenure : Freehold

Location : The Citadines London Holborn Covent Garden is close to the City's business district and near one of London's prime shopping areas, Oxford Street. The property is surrounded by a number of pubs, world- class restaurants, art galleries, churches, and a converted 19th century fruit and vegetable market. The property is 150 m east of Holborn Underground station, which provides access to all parts of Central London. The property is on the A40 road, which connects the city of London with the city of Fishguard, in Wales. The property is 24 km from London Heathrow Airport and 12 km from London City Airport.

Property : The Citadines Holborn Covent Garden is a purpose-built serviced Description apartment property with 192 studios and one-bed apartments. In addition to its guest rooms, the Property has conference space, a laundry facility, and a business centre. The property's premises also include retail space leased to Hodd Barnes and Dickins Ltd; Relish Restaurants Ltd; and Pizza Express Restaurants Ltd.

Net Floor Area : 8,403 square metres

Market Value, : £60,600,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 60 VALUATION CERTIFICATE

Property : Citadines Bruxelles Sainte-Catherine 51 quai au Bois a Brûler, 1000 Bruxelles, Belgium

Property Interest : Freehold interest in the land, buildings and other improvements Valued including furniture, fixtures and equipment.

Tenure : Freehold

Location : Citadines Bruxelles Sainte-Catherine is close to Brussels' historic centre, and within a ten-minute walk of the Grand Place (a UNESCO World Heritage Site). The Property's immediate neighbourhood is a mix of cafés, restaurants, residential buildings and some offices. The main business neighbourhood of the city is close by and other areas of the city (such as the EU Quarter) are easily accessible via Ste Catherine metro station, which is in front of the Property. Gare du Midi, Brussels' Eurostar terminal, is a ten- minute taxi ride away.

Property : Citadines Bruxelles Sainte-Catherine is a serviced apartment property Description with 169 studios and one-bedroom apartments that are distributed between three buildings, the tallest of which is six floors high. In addition to bedrooms, the Property has a breakfast room, a small meeting room and a private car park

Net Floor Area : 7,536 square metres

Market Value, : €14,300,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 61 VALUATION CERTIFICATE

Property : Citadines Bruxelles Toison d'Or 61-63 Avenue de la Toison d'Or, 1060 Bruxelles, Belgium

Property Interest : Freehold interest in the land, buildings and other improvements, Valued including furniture, fixtures and equipment. Although The Ascott (Europe) Pte Ltd has a 65% ownership stake in the Property, our valuation conclusion reflects the freehold interest in the Property in its entirety.

Tenure : Freehold

Location : Citadines Bruxelles Toison d'Or is a few minutesP walk from Palais de Justice, the Royal Palace and the historic city centre. Avenue de la Toison d'Or is also home to several upscale hotels and designer retail outlets. The area around Avenue de la Toison d'Or and Avenue Louise is one of the most upscale neighbourhoods in Brussels and is home to law firms, consulting companies, embassies and lobbyists. Easy access to the EU Quarter makes this a very desirable location.

Property : Citadines Bruxelles Toison d'Or ('the Property') is a serviced apartment Description property with 153 studios, one-bedroom apartments and two-bedroom apartments. In addition to bedrooms, the Property has a breakfast room, a small meeting room and a private car park.

Net Floor Area : 8,662 square metres

Market Value, : €13,000,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 62 VALUATION CERTIFICATE

Property : Citadines Berlin Kurfurstendamm Olivaer Platz 1, 10707 Berlin-Wilmersdorf, Germany

Tenure : Freehold

Location : In the western part of the city, close to the Tiergarten, Geddchtniskirche and the Reichstag. The Property is just a short walk from Kurfürstendamm, the upscale retail neighbourhood and one of the most famous avenues in Berlin. The Property is 2.5 km from the ICC conference centre and 15 minutes drive from the airports of Berlin Tempelhof and Tegel.

Property : The Citadines Berlin Kurfurstendamm is a serviced apartment property Description with 118 studios and one-bed apartments. In addition to bedrooms, the Property has a breakfast room, a car park and a business corner.

Net Floor Area : 5,480 square metres

Market Value, : €12,800,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 63 VALUATION CERTIFICATE

Property : Citadines Munich Arnulfpark Arnulfstrasse 51, 80636 München, Germany

Tenure : Freehold

Location : At 20 minutes' walk from Marienplatz, Karlsplatz and the centre of Munich, Citadines Munich Arnulfpark benefits from accessibility to Munich airport owing to its proximity to the ring road (Landshuter Allee) and major points of interest in the city. The train station is some 1.7 km away. The Property is approximately 16 km from Munich's conference and exhibition centre and benefits from a good commercial location with a number of large companies nearby.

Property : The Citadines Munich Arnulfpark is a purpose-built serviced apartment Description property with 146 studios, one- and two-bed apartments. In addition to its bedrooms, the Property has one meeting room, a small gym and a breakfast room.

Net Floor Area : 6,502 square metres

Market Value, : €17,600,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 64 VALUATION CERTIFICATE

Property : Citadines Barcelona Ramblas Ramblas 122 08002 Barcelona, Spain

Tenure : Freehold

Location : The Property is on Las Ramblas, a few metres from Plaza Catalunya, the most touristy and lively area in Barcelona. This area is within easy reach of both the historic old town and the business areas. The Property is surrounded by four of the leading hotels in Barcelona: Barcelona 1898, Le Méridien Barcelona, Hotel Royal and Hotel Rivoli. The excellent location of the Citadines aparthotel allows easy access to any part of the city by bus or by metro within 15 to 20 minutes.

Property : The Property is divided between two buildings and has 131 units: Description studios for up to two people and one-bedroom units for up to four people. The Property also has a business corner, laundry facilities and a breakfast dining area.

Net Floor Area : 6,440 square metres

Market Value, : €28,400,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

G - 65 HVS Statement of Assumptions and Limiting Conditions 1

Addendum 1 – Statement of Assumptions and Limiting Conditions

1. We have relied on information given by the Client and its representatives and have accepted advice given to us on such matters as land titles, easements, tenure, planning approvals, statutory notices, tenancy schedule, site and floor plans, building plans, floor areas, building design, building costs, operating and income statements and all other relevant matters. We have assumed the information given to us as correct and have not conducted independent checks to verify them, and no responsibility is assumed or implied by us. Interested parties are advised to seek further due diligence of qualified solicitors, engineers and other professionals as appropriate prior to making any legal, financial or other commitments. Should it be revealed that any information provided is inaccurate or misleading so that its use would affect the valuation, we seek to be informed of such discrepancies and accordingly reserve the right to amend our assessment. 2. The Property including its land titles, use rights and improvements is assumed to be transferable, marketable and free of any deed restrictions, easements, encumbrances or other impediments of an onerous nature that would affect the value of the Property. We have not conducted independent checks to verify and likewise advice interested parties to engage qualified solicitors to perform such checks and verifications as appropriate. 3. There are no hidden or unapparent conditions of the Property, subsoil or structures that would render it more or less valuable. No responsibility is assumed for these conditions or any engineering that may be required to discover them. We have not considered the existence of potentially hazardous materials used in the construction or maintenance of the buildings, such as asbestos, urea formaldehyde foam insulation, or PCBs. We are thus unable to report that the Property is free from risk in this respect and have assumed that any investigation would not reveal the presence of hazardous materials. The valuers are not qualified to detect these substances and urge the Client to retain an expert in this field if desired. We have not investigated whether the site is or has been in the past contaminated and are therefore unable to warrant that the Property is free from any defect or risk in this respect. Our report is

G - 66 HVS Statement of Assumptions and Limiting Conditions 2

therefore based on the assumption that the land is not contaminated and any specialist investigation would not disclose the presence of any adverse conditions on the site or within the building. 4. In the course of the property inspection, particular investigation has not been made on environmental matters that are either an inherent feature of the Property itself or the surrounding area, which could impact on the property interest. Examples include the historic mining activity or electricity transmission equipment. We therefore value on the assumption that the Property is not affected by any such environmental matters. 5. No cadastral survey of the Property has been made by the valuers and no responsibility is assumed in connection with such matters. Sketches, pictures, maps and other exhibits are included to assist the Client in visualising the Property. It is assumed that the use of the land and premises is within the boundaries of the Property described and that there is no encroachment or trespass unless noted. 6. Each of these Valuation Certificates is neither a structural survey nor a survey on the electrical and mechanical services in terms of both hardware and software. We therefore value on the assumption that the Property is of sound design and construction, and free from any inherent defect. No detailed inspection or tests have been carried out by us on any of the services or items of equipment; therefore, no warranty can be given with regard to their serviceability, efficiency, safety or adequacy for their purpose. We express no opinion or advice upon the condition of uninspected parts and our report should not be read as making any implied representation or statement about such parts. We have assumed that the Property together with the services therein is in a good state of repair and condition and that there are no outstanding items of expenditure required. 7. Valuation reports for each individual Property are accompanied with their corresponding list of assumptions and limiting conditions which states assumptions peculiar and pertinent to individual Properties. Interested parties are advised to read the individual reports prior to making any legal, financial or other commitments. 8. We have not inspected any of the Property’s city, local and private consents, licences, approvals, permits or certificates for its use and operations. It is assumed that the Property will be in full compliance with all applicable city, local and private codes, laws, consents, licences and regulations (including a fire certificate and relevant alcohol licences where appropriate), and that all licences, permits, certificates, franchises and so forth can be freely renewed and/or transferred to a purchaser. It is advisable for interested parties to seek full legal due diligence advice of a qualified legal solicitor prior to making any legal, financial or other commitments.

G - 67 HVS Statement of Assumptions and Limiting Conditions 3

9. All mortgages, liens, encumbrances, leases, servitudes, arrears and penalties have been disregarded unless specified otherwise. 10. No portion of this report, in whole or in part, or any reference thereto may be reproduced in any form or included in any document, circular or statement without the permission of HVS, nor shall the report be distributed to the public through advertising, public relations, news, sales, or other media without the prior written consent of HVS. 11. HVS is not required to give testimony or attendance in court by reason of this economic and valuation study without previous arrangements and only when our standard per diem fees and travel costs are paid prior to the appearance. 12. If the reader is making a fiduciary or individual investment decision and has any questions concerning the material contained in this report, it is recommended that the reader contact HVS. 13. The quality of a property’s on-site management has a direct effect on a property's economic viability and market value. The financial forecasts presented in this Valuation Report assume both responsible ownership and competent management. Any variance from this assumption may have a significant impact on the forecast operating results. 14. The estimated operating results presented in this report are based on an evaluation of the current overall economy of the area and neither take into account nor make provision for the effect of any sharp rise or decline in local or economic conditions. To the extent that wages and other operating expenses may advance during the economic life of the Property, it is expected that the prices of rooms, food, beverages and services will be adjusted to at least offset these advances. HVS does not warrant that the estimates will be attained, but they have been prepared on the basis of information obtained during the course of this study and are intended to reflect the expectations of typical investors. 15. Many of the figures presented in this report were generated using sophisticated computer models that make calculations based upon numbers carried out to three or more decimal places. In the interest of simplicity, most numbers presented in this report have been rounded. Thus, these figures may be subject to small rounding errors in some cases. 16. Our valuation opinion is current as at the date of valuation. It is likely that the value assessed may be subjected to significant and unexpected changes over a relatively short period due to reasons including, but not limited to, the result of general market movements and/or other factors specific to the subject Properties. We are not liable for any losses arising from any of such subsequent

G - 68 HVS Statement of Assumptions and Limiting Conditions 4

changes in value and neither do we accept any liability where our value opinion is relied upon after the expiration of three months from the date of valuation. We shall not be responsible for any delay to the performance of our valuation exercise, where matters beyond our control cause such delay. 17. Valuing real estate is both a science and an art. Although this valuation employs various mathematical calculations, the final estimate is subjective and may be influenced by the consultant’s experience and other factors not specifically set forth in this report. 18. It is assumed that the relationship between the currencies used in this report and other major world currencies remains constant as at the date of our fieldwork. 19. Whilst the information contained herein is believed to be correct, it is subject to change. Nothing contained herein is to be construed as a representation or warranty of any kind. 20. Until the time that all of our professional fees and other charges have been paid in full, the draft or final report, which is provided to you as a professional courtesy, remains the intellectual property of HVS and shall not be utilised in attempting to: a) obtain financial capital (whether debt or equity); b) further any litigation, mediation, or arbitration processes; or c) assist the Client in any cause, action or endeavour. If HVS has not been paid in full for its outstanding professional fees and other charges, and the draft or final report is used in violation of this agreement, HVS will be entitled to seek injunctive relief, monetary damages, and the cost of attorney fees and collection expenses. 21. It is agreed that the liability of HVS, its employees and anyone else associated with this assignment is limited to the amount of the fee paid as liquidated damages. You acknowledge that any opinions, recommendations and conclusions expressed during this assignment will be rendered by the staff of HVS acting solely as employees and not as individuals. Any responsibility of HVS is limited to the Client, and use of our product by third parties shall be solely at the risk of the Client and/or third parties. 22. This assessment and study has been undertaken by HVS as an independent overseas consultant. 23. Throughout this report, ‘HVS’ refers to the trading name of SG&R Singapore Pte Ltd (Registration Number 199900143N), a wholly owned subsidiary of SG&R Valuation Services Company.

G - 69 DBS Trustee Limited Charles Chan E:[email protected] (as trustee of Ascott Residence Trust) DL: (852) 2842 4523 c/o Ascott Residence Trust Management Limited F: (852) 2501 5810

8 Shenton Way #13-01 23/F Two Exchange Square Singapore 068811 Central, Hong Kong

EA LICENCE: C-023750 Attn.: Ms Kang Siew Fong T: (852) 2801 6100 savills.com

16 August 2010 Our Ref.: BJ/2010/IC/0074(a)/CC/MW/ck

Dear Sirs,

RE:ASCOTT BEIJING,NO. 108B JIANGUO ROAD,CHAOYANG DISTRICT,BEIJING, THE PEOPLE¶S REPUBLIC OF CHINA (THE ³3ROPERTY´

We refer to your instructions for us to prepare a report on the market value of the Property located in the 3HRSOH¶V5HSXEOLFRI&KLQD WKH³35&´ , we confirm that we have carried out an inspection of the Property and made relevant enquiries and investigations as we consider necessary for the purpose of providing you with our estimation of market value of the Property as at -XO\ WKH³GDWHRIYDOXDWLRQ´

,QDVVHVVLQJWKHPDUNHWYDOXHRIWKH3URSHUW\ZHKDYHDGRSWHGWKH'LUHFW&RPSDULVRQ$SSURDFK ³'&$´ DCA provides the most reliable indication of the value from sales of similar properties which are available and the necessary adjustments are few in number and relatively minor.

We have relied to a considerable extent on the information given by the Company and accepted advice given to us on such matters as planning approvals or statutory notices, easements, tenure, particulars of occupancy, site and floor areas and all other relevant matters. All dimensions, measurements and areas included in our valuation are based on information contained in the documents provided to us and are therefore approximations. No on-site measurements have been taken. We have no reason to doubt the truth and accuracy of the information provided to us. We have also been advised by you that no material facts have been omitted from the information provided.

Neither the whole or any part of this letter nor any reference thereto may be included in any documents, circular or statement without our written approval of the form and context in which it will appear.

Over 200 offices and associates throughout the Americas, Europe, Asia Pacific, Africa and the Middle East.

Savills Valuation and Professional Services Limited G - 70 In accordance with our standard practice, we must state that this letter and valuation is for the use only of the party to whom it is addressed and no responsibility is accepted to any third party for the whole or any part of its contents.

Yours faithfully, For and on behalf of Savills Valuation and Professional Services Limited

Charles C K Chan MSc FRICS FHKIS MCIArb RPS (GP) Managing Director

Encl.

Our Ref.: BJ/2010/IC/0074(a)/CC/MW/ck Page 2

G - 71 VALUATION CERTIFICATE

Address of Property: No. 108B Jianguo Road, Chaoyang 'LVWULFW %HLMLQJ WKH 3HRSOH¶V 5HSXEOLF RI China

Tenure: Leasehold; 70 years commencing on 8 February 1996 and expiring on 7 February 2066 for residential use

Location & Situation: The property under consideration is Ascott %HLMLQJ WKH³3URSHUW\´ 7KH3URSHUW\ is located on the southern side of Jianguo Road and close to the junction with East Third Ring Middle Road in Chaoyang District, Beijing.

Chaoyang District includes the central business district of Beijing. The neighbourhood developments are dominated by modern high-rise office buildings. Abundant shopping and public facilities are located within a short driving distance. Public transport facilities such as buses, taxies, railways and subways are readily available in the vicinity.

Brief Description: The Property comprises two 21-storey residential towers (including a level of Basement car parks) erected on a parcel of land with a site area of approximately 3,276.55 sq. m. It was completed in 1998.

As per the supplied Survey Report, the Property has a total above-ground gross IORRU DUHD ³*)$´ RI DSSUR[LPDWHO\ VTP DFFRPPRGDWLQJ IXOO\ furnished serviced apartments units having a total GFA of approximately 54,216.00 sq.m. The underground GFA for basement car parks and basement mezzanine are 1,412.38 sq.m. and 849.59 sq.m. respectively. Details of apartments are listed as follows:

Type GFA No. of Units (sq. m.) 1-bedroom Deluxe 99 ± 105 36 1-bedrrom Executive 113 ± 120 65 1-bedroom Premier 128 ± 144 37 2-bedroom Deluxe 178 64 2-bedrrom Executive 205 64 3-bedroom Deluxe 249 32 Penthouse Executive 353 8 Penthouse Premier 380 4

Our Ref.: BJ/2010/IC/0074(a)/CC/MW/ck Page 3

G - 72 At the date of inspection, the interior of each serviced apartment of the Property was finished with papered walls, carpeted flooring and false ceiling in well- maintained condition.

The Property had the provision of 24-hour reception, convenience store, restaurant, business centre, aerobics room, gymnasium, indoor swimming pools and function room.

Open Market Value RMB1,409,000,000 (RENMINBI ONE BILLION FOUR HUNDRED AND NINE as at 12 July 2010: MILLION ONLY)

Our Ref.: BJ/2010/IC/0074(a)/CC/MW/ck Page 4

G - 73 Valuation Certificate Ascott Beijing People’s Republic of China

Submitted to: Ms Yeong Lai Meng Senior Vice-President, Finance Ascott Investments Pte Ltd No 8 Shenton Way #13-01 Singapore 068811

Prepared by: HVS Temasek Boulevard, #23-01A Suntec Tower Four, Singapore 038986 Tel: +65 6293 4415 Fax: +65 6293 5426

16 August 2010

HVS No: 2010120008

G - 74 16 August 2010

Ms Yeong Lai Meng Senior Vice-President, Finance Ascott Investments Pte Ltd No 8 Shenton Way, #13-01 Singapore 068811

Dear Sir/Madam,

VALUATION CERTIFICATE FOR ASCOTT BEIJING, PEOPLE’s REPUBLIC OF CHINA

We are pleased to submit to you our Valuation Certificate for the above- mentioned property:-

1.0 Client Brief and Purpose of Valuation

We have been instructed to perform a valuation of the property as at 1 July 2010. We have assumed that there are no material changes in the property since our last inspection in 23 March 2010.

HVS has assessed the property interests as independent international appraisers. We hereby certify that we have no undisclosed interest in the property and our employment and compensation are not contingent upon our findings and valuations.

2.0 Basis of Valuation

The valuation is prepared in accordance with the International Valuation Standards Committee (‘IVSC’) definition of Market Value, which is:

Additionally, our assessment will be on the basis of the existing use of the property only with appropriate approvals and licenses in place.

HVS Singapore (Reg. No. 52885191L) is the trading name of SG&R Singapore Pte Ltd (Reg. No. 199900143N) Page 1 of 2

G - 75 3.0 Information Utilised

We have been provided with financial, leases and other information relevant to our assessment of the property and whilst due care has been taken in the application of the information, its accuracy cannot be verified by HVS.

4.0 Use of Valuation Certificate

Neither the whole nor anypart of the valuation certificate nor any reference thereto maybe included in any document, circular or statement without our written approval and of the form or context in which it appears.

Thi valuation has been prepared for the purpose stated above and for use only of the Client and no responsibility is given to any third party for the whole or part of its contents.

5.0 Assumptions and Limiting Conditions

A list of major assumptions made in the valuation of the property and the limiting conditions under which the opinion is given is detailed in the Addendum to this valuation certificate. It is a condition of the use of the valuation that the recipient of the certificate accepts these statements.

The Valuation Certificate included herein should be read in conjunctionwiththefullvaluationreport, dated 1 July 2010, which detailed the basis under which the valuation has been prepared.

Yours sincerely HVS

Steven Lim David Ling,MSc,BBus(Dist),MSISV,AAPI Manager Managing Director – Singapore

HVS No: 2010120008

HVS Singapore (Reg. No. 52885191L) is the trading name of SG&R Singapore Pte Ltd (Reg. No. 199900143N) Page 2 of 2

G - 76 VALUATION CERTIFICATE

Property : Ascott Beijing No. 108B Jianguo Road Chaoyang District Beijing 100022, China

Property Interest : Unexpired land use rights in the land, buildings and other improvements Valued including furniture, fixtures and equipment.

Tenure : 70 years, expiring on 7 February 2066.

Location : Ascott Beijing is located at the junction of the third ring road and the Chang’an Avenue. The Property occupies the southeast corner of the Onward Science and Trade Centre development, which comprises other four high-rise office buildings to the north and west of the Property.

Property Description : Opened in July 2001, Ascott Beijing is an international standard serviced apartment which features 310 units,anexercisearea, an indoor swimming pool, six retail outlets, comprising a hair salon, an art gallery, a jewellery shop, a massage shop, Citibank and a supermarket, and seven food and beverage outlets leased out for rent.

Gross Floor Area : 66,417.29 square metres (Inclusive of commercial space, carparking and mezzanine)

Value1 : RMB 1,508,000,000

Date of Valuation : 1 July 2010

Notice : This Valuation Certificate should be read in conjunction with the full valuation report, which details the conditions and assumptions under which this valuation is prepared.

1 The valuation of the subject Property is derived from sales comparison approach.

G - 77 HVS Statement of Assumptions and Limiting Conditions 1

Addendum 1 – Statement of Assumptions and Limiting Conditions

1. We have relied on information given by the Client and its representatives and have accepted advice given to us on such matters as land titles, easements, tenure, planning approvals, statutory notices, tenancy schedule, site and floor plans, building plans, floor areas, building design, building costs, operating and income statements and all other relevant matters. We have assumed the information given to us as correct and have not conducted independent checks to verify them, and no responsibility is assumed or implied by us. Interested parties are advised to seek further due diligence of qualified solicitors, engineers and other professionals as appropriate prior to making any legal, financial or other commitments. Should it be revealed that any information provided is inaccurate or misleading so that its use would affect the valuation, we seek to be informed of such discrepancies and accordingly reserve the right to amend our assessment. 2. The Property including its land titles, use rights and improvements is assumed to be transferable, marketable and free of any deed restrictions, easements, encumbrances or other impediments of an onerous nature that would affect the value of the Property.Wehave not conducted independent checks to verify and likewise advice interested parties to engage qualified solicitors to perform such checks and verifications as appropriate. 3. There are no hidden or unapparentconditionsoftheProperty, subsoil or structures that would render it more or less valuable. No responsibility is assumed for these conditions or any engineering that may be required to discover them. We have not considered the existence of potentially hazardous materials used in the construction or maintenance of the buildings, such as asbestos, urea formaldehyde foam insulation, or PCBs. We are thus unable to reportthattheProperty is free from risk in this respect and have assumed that any investigation would not reveal the presence of hazardous materials. The valuers are not qualified to detect these substances and urge the Client to retain an expert in this field if desired. We have not investigated whether the site is or has been in the past contaminated and are therefore unable to warrant that the Property is free from any defect or risk in this respect. Our report is

G - 78 HVS Statement of Assumptions and Limiting Conditions 2

therefore based on the assumption that the land is not contaminated and any specialist investigation would not disclose the presence of any adverse conditions on the site or within the building. 4. Inthecourseoftheproperty inspection, particular investigation has not been made on environmental matters that are either an inherent feature of the Property itself or the surrounding area, which could impact on the property interest. Examples include the historic mining activity or electricity transmission equipment. We therefore value on the assumption that the Property is not affected by any such environmental matters. 5. No cadastral survey of the Property has been made by the valuers and no responsibility is assumed in connection with such matters. Sketches, pictures, maps and other exhibits are included to assist the Client in visualising the Property. It is assumed that the use of the land and premises is within the boundaries of the Property described and that there is no encroachment or trespass unless noted. 6. This Valuation Certificate is neither a structural survey nor a survey on the electrical and mechanical services in terms of both hardware and software. We therefore value on the assumption that the Property is of sound design and construction, and free from any inherent defect. No detailed inspection or tests have been carried out by us on any of the services or items of equipment; therefore, no warranty can be given with regard to their serviceability, efficiency, safety or adequacy for their purpose. We express no opinion or advice upon the condition of uninspected parts and our report should not be read as making any implied representation or statement about such parts. We have assumed that the Property together with the services therein is in a good state of repair and condition and that there are no outstanding items of expenditure required. 7. We have assumed that there are no material changes in the property since our last inspection in 23 March 2010. 8. Valuation report for the Property,dated1July 2010, are accompanied with their corresponding list of assumptions and limiting conditions which states assumptions peculiar and pertinent to individual Properties. Interested parties are advised to read the individual reports prior to making any legal, financial or other commitments. 9. We have not inspected any of the Property’s city, local and private consents, licences, approvals, permits or certificates for its use and operations. It is assumed that the Property will be in full compliance with all applicable city, local and private codes, laws, consents, licences and regulations (including a fire certificate and relevant alcohol licences where appropriate), and that all licences, permits,

G - 79 HVS Statement of Assumptions and Limiting Conditions 3

certificates, franchises and so forth can be freely renewed and/or transferred to a purchaser. It is advisable for interested parties to seek full legal due diligence advice of a qualified legal solicitor prior to making any legal, financial or other commitments. 10. All mortgages, liens, encumbrances, leases, servitudes, arrears and penalties have been disregarded unless specified otherwise. 11. No portion of this report, in whole or in part, or any reference thereto may be reproduced in any form or included in any document, circular or statement without the permission of HVS, nor shall the report be distributed to the public through advertising, public relations, news, sales, or other media without the prior written consent of HVS. 12. HVS is not required to give testimony or attendance in court by reason of this economic and valuation study without previous arrangements and only when our standard per diem fees and travel costs are paid prior to the appearance. 13. If the reader is making a fiduciary or individual investment decision and has anyquestions concerning the material contained in this report, it is recommended that the reader contact HVS. 14. The quality of a property’s on-site management has a direct effect on a property's economic viability and market value. The financial forecasts presented in this Valuation Report assume both responsible ownership and competent management. Any variance from this assumption may have a significant impact on the forecast operating results. 15. The estimated operating results presented in the report are based on an evaluation of the current overall economy of the area and neither take into account nor make provision for the effect of any sharp rise or decline in local or economic conditions. To the extent that wages and other operating expenses may advance during the economic life of the Property,itisexpected that the prices of rooms, food, beverages and services will be adjusted to at least offset these advances. HVS does not warrant that the estimates will be attained, but they have been prepared on the basis of information obtained during the course of this study and are intended to reflect the expectations of typical investors. 16. Many of the figures presented in this report were generated using sophisticated computer models that make calculations based upon numbers carried out to three or more decimal places. In the interest of simplicity, most numbers presented in this report have been rounded. Thus, these figures may be subject to small rounding errors in some cases. 17. Our valuation opinion is current as at the date of valuation. It is likely that the value assessed may be subjected to significant and

G - 80 HVS Statement of Assumptions and Limiting Conditions 4

unexpected changes over a relatively short period due to reasons including, but not limited to, the result of general market movements and/or other factors specific to the subject Property.We are not liable for any losses arising from any of such subsequent changes in value and neither do we acceptany liability where our value opinion is relied upon after the expiration of three months from the date of valuation. We shall not be responsible for any delay to the performance of our valuation exercise, where matters beyond our control cause such delay. 18. Valuing real estate is both a science and an art. Although this valuation employs various mathematical calculations, the final estimate is subjective and may be influenced by the consultant’s experience and other factors not specifically set forth in this report. 19. It is assumed that the relationship between the currencies used in this report and other major world currencies remains constant as at the date of our fieldwork. 20. Whilst the information contained herein is believed to be correct, it is subject to change. Nothing contained herein is to be construed as a representation or warranty of any kind. 21. Until the time that all of our professional fees and other charges have been paid in full, the draft or final report, which is provided to you as a professional courtesy, remains the intellectual property of HVS and shall not be utilised in attempting to: a) obtain financial capital (whether debt or equity); b) further any litigation, mediation, or arbitration processes; or c) assist the Client in any cause, action or endeavour. If HVS has not been paid in full for its outstanding professional fees and other charges, and the draft or final report is used in violation of this agreement, HVS will be entitled to seek injunctive relief, monetary damages, and the cost of attorney fees and collection expenses. 22. It is agreed that the liability of HVS, its employees and anyone else associated with this assignment is limited to the amount of the fee paid as liquidated damages. You acknowledge that any opinions, recommendations and conclusions expressed during this assignment will be rendered by the staff of HVS acting solely as employees and not as individuals. Any responsibility of HVS is limited to the Client, and use of our product by third parties shall be solely at the risk of the Client and/or third parties. 23. This assessment and study has been undertaken by HVS as an independent overseas consultant. 24. Throughout this report, ‘HVS’ refers to the trading name of SG&R Singapore Pte Ltd (Registration Number 199900143N), a wholly owned subsidiary of SG&R Valuation Services Company.

G - 81 This page has been intentionally left blank.

APPENDIX H

SERVICED RESIDENCE MARKET OVERVIEWS OF 23 CITIES IN ASIA PACIFIC AND EUROPE

July 2010

PREPARED FOR: PREPARED BY:

DBS TRUSTEE LTD (THE "TRUSTEE") JONES LANG LASALLE HOTELS (AS TRUSTEE OF ASCOTT RESIDENCE TRUST) JONES LANG LASALLE PROPERTY CONSULTANTS PTE LTD C/O ASCOTT RESIDENCE TRUST MANAGEMENT LTD 9 RAFFLES PLACE NO 8 SHENTON WAY #38-01 REPUBLIC PLAZA SINGAPORE 068811 SINGAPORE 048619

H - 1

- TABLE OF CONTENTS -

1.0 INTRODUCTION...... 1 1.1. CLIENT BRIEF ...... 1 1.2. STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS...... 1 2.0 LONDON SERVICED RESIDENCES MARKET OVERVIEW ...... 2 2.1. UNITED KINGDOM ECONOMIC OVERVIEW...... 2 2.2. SERVICED APARTMENT MARKET AND PERFORMANCE REVIEW...... 3 2.3. SERVICED RESIDENCES TRENDS ...... 7 2.4. MARKET OUTLOOK...... 8 3.0 BRUSSELS SERVICED RESIDENCES MARKET OVERVIEW ...... 9 3.1. BELGIUM ECONOMIC OVERVIEW...... 9 3.2. SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW...... 10 3.3. SERVICED RESIDENCES TRENDS ...... 13 3.4. MARKET OUTLOOK...... 13 4.0 BARCELONA SERVICED RESIDENCES MARKET OVERVIEW ...... 14 4.1. SPAIN ECONOMIC OVERVIEW ...... 14 4.2. SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW...... 15 4.3. SERVICED RESIDENCES TRENDS ...... 18 4.4. MARKET OUTLOOK...... 18 5.0 BERLIN SERVICED RESIDENCES MARKET OVERVIEW ...... 19 5.1. GERMANY ECONOMIC OVERVIEW ...... 19 5.2. SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW...... 19 5.3. SERVICED APARTMENT TRENDS ...... 22 5.4. MARKET OUTLOOK...... 23 6.0 MUNICH SERVICED RESIDENCES MARKET OVERVIEW...... 24 6.1. SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW...... 24 6.2. SERVICED APARTMENT TRENDS ...... 26 6.3. MARKET OUTLOOK...... 27 7.0 FRANCE SERVICED RESIDENCES MARKET OVERVIEW...... 28 7.1. FRANCE ECONOMIC OVERVIEW...... 28 7.2. TOURISM...... 28 7.3. FRANCE SERVICED APARTMENTS MARKET...... 29 7.4. SUPPLY ...... 29 7.5. FUTURE SUPPLY ...... 30 7.6. SERVICED APARTMENT TREND...... 31 8.0 PARIS SERVICED RESIDENCES MARKET OVERVIEW...... 32 8.1. PARIS ECONOMIC OVERVIEW ...... 32 8.2. SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW...... 32 8.3. FUTURE SUPPLY ...... 33 8.4. DEMAND...... 34 8.5. PERFORMANCE REVIEW...... 34 8.6. MARKET OUTLOOK...... 35 9.0 MARSEILLE SERVICED RESIDENCES MARKET OVERVIEW...... 37 9.1. MARSEILLE ECONOMIC OVERVIEW ...... 37 9.2. SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW...... 38

Serviced Residences Market Overview Report Page i Prepared for DBS Trustee Ltd July 2010 H - 2

9.3. FUTURE SUPPLY ...... 39 9.4. DEMAND...... 39 9.5. PERFORMANCE REVIEW...... 39 9.6. OUTLOOK FOR THE MARKET ...... 40 10.0 LYON SERVICED RESIDENCES MARKET OVERVIEW ...... 42 10.1. LYON ECONOMIC OVERVIEW...... 42 10.2. SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW...... 43 10.3. FUTURE SUPPLY ...... 44 10.4. DEMAND...... 45 10.5. PERFORMANCE REVIEW...... 45 10.6. OUTLOOK FOR THE MARKET ...... 46 11.0 CANNES SERVICED RESIDENCES MARKET OVERVIEW ...... 47 11.1. CANNES OVERVIEW...... 47 11.2. SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW...... 47 12.0 MONTPELLIER SERVICED RESIDENCES MARKET OVERVIEW...... 51 12.1. MONTPELLIER ECONOMIC OVERVIEW ...... 51 12.2. SERVICED APARTMENT MARKET & PERFORMANCE REVIEW ...... 52 13.0 LILLE SERVICED RESIDENCES MARKET OVERVIEW ...... 55 13.1. LILLE ECONOMIC OVERVIEW...... 55 13.2. SERVICED APARTMENT MARKET & PERFORMANCE REVIEW ...... 56 14.0 GRENOBLE SERVICED RESIDENCES MARKET OVERVIEW ...... 59 14.1. GRENOBLE ECONOMIC OVERVIEW ...... 59 14.2. SERVICED APARTMENT MARKET & PERFORMANCE REVIEW ...... 60 15.0 MELBOURNE SERVICED RESIDENCES MARKET OVERVIEW ...... 64 15.1. AUSTRALIAN ECONOMIC OVERVIEW ...... 64 15.2. MELBOURNE SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW ...... 65 15.3. MARKET OUTLOOK...... 69 16.0 PERTH SERVICED RESIDENCES MARKET OVERVIEW...... 71 16.1. PERTH SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW ...... 71 16.2. MARKET OUTLOOK...... 75 17.0 BEIJING SERVICED RESIDENCES MARKET OVERVIEW ...... 76 17.1. BEIJING ECONOMIC OVERVIEW ...... 76 17.2. SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW...... 77 17.3. SERVICED APARTMENT TRENDS ...... 80 17.4. MARKET OUTLOOK...... 81 18.0 SHANGHAI SERVICED RESIDENCES MARKET OVERVIEW...... 82 18.1. SHANGHAI ECONOMIC OVERVIEW...... 82 18.2. SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW...... 83 18.3. SERVICED APARTMENT TRENDS ...... 86 18.4. MARKET OUTLOOK...... 87 19.0 TIANJIN SERVICED RESIDENCES MARKET OVERVIEW ...... 89 19.1. TIANJIN ECONOMIC OVERVIEW ...... 89 19.2. SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW...... 90 19.3. SERVICED APARTMENT TRENDS ...... 93 19.4. MARKET OUTLOOK...... 93 20.0 TOKYO SERVICED RESIDENCES MARKET OVERVIEW...... 95

Serviced Residences Market Overview Report Page ii Prepared for DBS Trustee Ltd July 2010 H - 3

20.1. JAPAN ECONOMIC OVERVIEW...... 95 20.2. SERVICED APARTMENT MARKET & PERFORMANCE REVIEW ...... 95 20.3. SERVICED RESIDENCE TRENDS ...... 99 20.4. MARKET OUTLOOK...... 99 21.0 MANILA SERVICED RESIDENCES MARKET OVERVIEW...... 101 21.1. PHILIPPINES ECONOMIC OVERVIEW...... 101 21.2. SERVICED RESIDENCES MARKET REVIEW ...... 102 21.3. SERVICED RESIDENCES TRENDS ...... 105 21.4. MARKET OUTLOOK...... 106 22.0 HANOI SERVICED RESIDENCES MARKET OVERVIEW ...... 107 22.1. HANOI ECONOMIC OVERVIEW ...... 107 22.2. SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW...... 108 22.3. SERVICED RESIDENCES TRENDS ...... 111 22.4. MARKET OUTLOOK...... 111 23.0 HO CHI MINH CITY SERVICED RESIDENCES MARKET OVERVIEW...... 113 23.1. HO CHI MINH CITY ECONOMIC OVERVIEW ...... 113 23.2. SERVICED RESIDENCES MARKET & PERFORMANCE REVIEW...... 114 23.3. SERVICED RESIDENCES TRENDS ...... 118 23.4. MARKET OUTLOOK...... 118 24.0 SINGAPORE SERVICED RESIDENCES MARKET OVERVIEW...... 120 24.1. SINGAPORE ECONOMIC OVERVIEW...... 120 24.2. SERVICED APARTMENTS MARKET & PERFORMANCE REVIEW...... 121 24.3. SERVICED APARTMENTS TRENDS ...... 124 24.4. MARKET OUTLOOK...... 125 25.0 JAKARTA SERVICED RESIDENCES MARKET OVERVIEW ...... 126 25.1. JAKARTA ECONOMIC OVERVIEW ...... 126 25.2. SERVICED APARTMENT MARKET OVERVIEW ...... 127 25.3. SERVICED RESIDENCES TRENDS ...... 129 25.4. MARKET OUTLOOK...... 130

Glossary

ADR Average daily rate RevPAR Revenue per available room CAAG Compound annual average change GDP Gross domestic product Q1/2/3/4 Quarter 1/2/3/4 YTD Year-to-date YOY Year-on-year

MICE Meetings, Incentive, Convention and Exhibitions CBD Central Business District FDI Foreign Direct Investments FAI Fixed Asset Investments SOE State Owned Enterprise

Serviced Residences Market Overview Report Page iii Prepared for DBS Trustee Ltd July 2010 H - 4

1.0 INTRODUCTION

1.1. Client Brief

This report has been prepared in response to instructions dated 16 April 2010 received from DBS Trustee Limited (in its capacity as Trustee of Ascott Residence Trust) (the Client) requesting Jones Lang LaSalle Hotels / Jones Lang LaSalle Property Consultants to prepare a Serviced Residence Market Overview of 23 cities in Asia Pacific and Europe namely,

ASIA EUROPE 1. Beijing 12. London 2. Shanghai 13. Brussels 3. Tianjin 14. Barcelona 4. Tokyo 15. Berlin 5. Manila 16. Munich 6. Hanoi 17. Paris 7. Ho Chi Minh 18. Marseille 8. Singapore 19. Lyon 9. Jakarta 20. Cannes 21. Montpellier AUSTRALIA 22. Lille 10. Melbourne 23. Grenoble 11. Perth

1.2. Statement of Assumptions and Limiting Conditions

This report is provided to DBS Trustee Limited (in its capacity as Trustee of Ascott Residence Trust) (the Client) for the purpose of the proposed inclusion of their assets in a Real Estate Investment Trust (“REIT”) public listing on the Stock Exchange of Singapore and is not to be copied or redistributed to any other person or corporation without the prior written consent of Jones Lang LaSalle Hotels.

No liability for negligence or otherwise is assumed by Jones Lang LaSalle Hotels for the material contained in the report. Any liability on the part of Jones Lang LaSalle Hotels, its servants or agents for damages for any claim arising out of or in connection with this report, other than liability which is totally excluded by this clause, shall not (whether or not such liability results from or involves negligence) exceed US$1,000.

The information contained in the report has been prepared in good faith and with due care by Jones Lang LaSalle Hotels. The nominated parties should take note however that calculations contained in the report are based on figures provided to Jones Lang LaSalle Hotels by outside sources that have not been independently verified by Jones Lang LaSalle Hotels. The projections contained in the report therefore represent best estimates only and may be based on assumptions which, while reasonable, may not be correct. Such projections represent only one possible result, depending on the assumptions adopted.

Serviced Residences Market Overview Report Page 1 Prepared for DBS Trustee Ltd July 2010 H - 5

2.0 LONDON SERVICED RESIDENCES MARKET OVERVIEW

2.1. United Kingdom Economic Overview

The United Kingdom (UK) economy enjoyed a prolonged period of robust growth between 1993 and 2007, as a result of global growth and a stable domestic political backdrop. GDP growth averaged 3.0% per year during this period, while consumer price inflation averaged 1.8%. Nevertheless, the global financial crisis has hit the UK economy particularly hard due to the importance of its financial sector. In addition, the economy was also affected by a sharp correction in the housing market and high consumer debt levels. Meanwhile, public finances deteriorated markedly even before the economic slowdown started, as the government lifted spending and investment to try to improve public services (notably in education and health).

With limited scope for fiscal stimulus to combat the the recession which ran until the Q3 09, the government will have to undertake substantial corrective measures once recovery is sustained. This is likely to curtail growth over the medium term, resulting in the economy unlikely to return to sustained growth rates of 3.0%. A more competitive Sterling Pound should aid recovery in the economy and also lead to reductions in the trade and current-account deficits. Other important medium-term issues include the need for infrastructural investment, the need to boost productivity, and a possible significant shortfall in pensions.

The economy belatedly crawled out of recession in Q4 2009 as real GDP expanded 0.4% from Q3 to Q4. This followed a record six quarters of contraction, which saw a 6.0% decline in GDP from the peak in Q1 2008 to the trough in Q3 2009. GDP growth continued in Q1 2010 at 0.3%. Recovery is being supported by record-low interest rates, quantitative easing, major support to the banking sector, significant fiscal stimulus, the weak Sterling Pound, and improving global economic activity and trade.

The marginal growth of 0.4% in Q4 2009 and 0.3% in Q1 2010 despite the support given indicates that serious economic and financial obstacles remain which could hinder significant, sustainable growth. Consequently, it is likely that recovery will only be gradual and prone to losses of momentum for some considerable time. Current tight credit conditions amid still- serious financial-sector problems, the need for consumers to improve their balance sheets, and elevated and likely further rising unemployment are particular handicaps to growth.

Business investment will also be constrained for an extended period by substantial spare capacity. Consequently, in their June forecast, IHS Global Insight projected GDP growth to be limited to 1.1% in 2010 after a contraction of 4.9% in 2009. While the upturn should gradually become more firmly established during 2011, the upside for growth will be constrained by the substantial tightening of fiscal policy that is needed for an extended period to rein in the dismal public finances.

UK Economic Indicators 2007 2008 2009 2010F 2011F 2012F 2013F 2014F Real GDP growth 2.6% 0.5% -4.9% 1.1% 1.8% 2.3% 2.6% 2.8% Consumer price inflation (av.) 2.3% 3.6% 2.2% 3.0% 1.8% 1.9% 2.1% 2.3% Short term interest rate 6.0% 5.5% 1.2% 0.7% 1.6% 3.2% 4.2% 4.7% Unemployment rate 5.3% 5.7% 7.6% 8.2% 8.4% 7.6% 6.6% 5.8% Exchange rate $:£ (av.) 0.50 0.55 0.64 0.69 0.68 0.60 0.56 0.55 Exchange rate €:£ (av.) 0.68 0.80 0.89 0.84 0.78 0.75 0.74 0.76 Trade balance (% GDP) -6.4% -6.4% -5.9% -5.7% -5.7% -5.5% -5.7% -5.7% Current account balance (% GDP) -2.7% -1.5% -1.3% -1.7% -1.5% -1.4% -1.3% -1.2% Source: IHS Global Insight, June 2010

Serviced Residences Market Overview Report Page 2 Prepared for DBS Trustee Ltd July 2010 H - 6

2.2. Serviced Apartment Market and Performance Review

Definition of Serviced Apartment

The London serviced apartment sector is significantly more aligned to the recognised hotel model, operating for many years as a fragmented sector. Depending on planning status, serviced apartments can either be sold on a per night basis or only for extended periods of more than 90 days and as such are viewed as a direct competitor to hotels.

Typically within London, the only differentiating factors from hotels are:

Rooms are equipped with a kitchenette.

Facilities usually limited to a breakfast room but no other public facilities such as conference rooms or restaurants.

Guests may select to have the apartments serviced on a daily or weekly basis depending on length of stay.

Supply

As at end of December 2006, Visit London reported that there were 4,300 serviced apartments in London, comprising 3% of total accommodation room supply in the city. There have been no official statistics on the supply of serviced apartments in London since. According to industry sources, there were approximately 5,200 serviced apartments in London in 2008. Serviced apartment statistics is very limited and the supply as at April 2010 is an estimate.

Hotel and Serviced Apartment Supply in London 70,000

60,000

50,000

40,000

30,000

20,000 No.of Rooms (Estimated) 10,000

0 2002 2006 2010

Source: Visit London, Jones Lang LaSalle Hotels Hotels Serviced Apts

In London, serviced apartments are either stand-alone properties or part of a residential, hotel or mixed-use development. These developments typically offer a range accommodation from studios to penthouses, with one and two-bedroom units being the most common. The majority of apartments are located in Westminster (37%), Kensington & Chelsea (27%), the City of London (19%) and increasingly in Canary Wharf where the main business activities of London are concentrated. The other areas of Camden and Tower Hamlets account for the remaining 17%.

Serviced Residences Market Overview Report Page 3 Prepared for DBS Trustee Ltd July 2010 H - 7

Some of the major branded serviced apartment operators in the London market include:

Major Serviced Apartment Operators No. of Properties Units Ascott 6 1,000 Club Quarters 3 760 Bridgestreet Worldwide 21 600 Oakwood 23 500 Cheval Group 6 290 Frasers Hospitality 5 285 Clarendon 7 150 Marriott International 2 96 Others 619 Total 4,300 Source: Visit London Hotel Development Monitor March 2007 (latest available official statistics)

Although there have been no updated statistics on the number of properties and units operated by each of the major operators, our research indicates that as of today, The Ascott Limited (Ascott) is one of the largest operators in London with a total of six properties offering 736 serviced apartments units. Frasers Hospitality has opened a further four properties since 2006 and currently has a total serviced apartment inventory of 403. Cheval has maintained the number of serviced apartments and properties under management.

As the serviced apartment sector in London is not highly regulated and tends to compete with hotels, the supply of hotels in the city is relevant to the serviced apartment market.

London offers an extensive choice of hotels, from budget to luxury. In recent years, the city experienced a substantial increase in its budget segment, which jumped by 65% between 2002 and 2009, with brands such as Travelodge and Express by Holiday Inn rapidly expanding in the capital. The upscale and luxury segment also witnessed an increase, but to a smaller extent of approximately 18% from 2002 to 2009.

London Graded Hotel Supply (as at end June 2010) Grade Properties Rooms % of Total 5-star 65 11,011 15% 4-star 161 30,988 41% 3-star 140 19,884 26% Other 116 13,233 18% Total 482 75,116 - Source: Jones Lang LaSalle Hotels

As at March 2010, the graded hotel supply in London comprised 482 hotels with a total of more than 75,000 rooms. Despite major developments in the budget sector, the London market remains dominated by four-star hotel room supply. The majority of this supply is concentrated in central London around Westminster, Camden, Kensington and Chelsea.

Since the late 1990s, the budget hotel sector in London has more than tripled in inventory, with over 10,000 new rooms added to the market. Despite this growth, the sector is still relatively small with budget hotel penetration in the capital amounting less than 20%.

Serviced Residences Market Overview Report Page 4 Prepared for DBS Trustee Ltd July 2010 H - 8

Future supply

According to the latest Visit London Hotel Development Monitor, there are three proposed serviced apartment/aparthotel projects. These have been in the development pipeline for several years, but construction has yet to commence. It is unlikely that these projects will materialise in the short term but have been identified as they have been granted planning permission by the respective planning authorities.

Major Aparthotel / Serviced Apartment Future Supply in London (as at January 2010) Proposed Projects Borough Due Units Grade Developer Wah Kwong House Lambeth TBC 102 Aparthotel G&G Properties Hampton House Lambeth TBC 167 Aparthotel Newlands Enterprises Ltd Three Quays House City On Hold 78 Serviced Apartments Cheval Group Total Units 347 Source: London Hotel Development Monitor January 2010

Development activity across London’s hotel sector continues to be strong. It appears that although the credit crunch is slowing down general commercial construction, many hotel operators remain committed to expanding in the capital, especially at the upscale end of the market. While some of the development pipeline has been scrapped or scaled down, the number of potential hotel projects in the pipeline is still significant.

If all announced hotel developments are realised, hotel supply in London will increase by 5.2% and 2.9% in 2010 and 2011 respectively.

Demand

While there is no requirement on the length of stay for the majority of serviced apartments in London including those for Ascott, the demand drivers are similar to hotels with determining factors such as brand, star-grading, location and price. For serviced apartments with a minimum stay requirement such as some of the properties by Cheval, the demand drivers tend to be different as they are inclined to compete with the traditional residential rental market.

London is one of the world’s leading cities for international tourism, attracting around 25 million overnight visitors annually. Tourism is a vital contributor to London's economy generating approximately GBP10.5 billion in overnight visitor spending per annum.

London: Tourism Trends 2006 - 2009 2006 2007 2008 2009(P) CAAG 2002-09 Visitor Arrivals (Millions) Domestic 10.9 10.1 9.8 9.3 -7.5% International 15.6 15.3 14.8 14.1 2.8% Total 26.5 25.4 24.6 23.4 -2.4% Growth per annum 8.0% -4.2% -3.5% -4.6% Bed Nights (Millions) Domestic 24.6 23.4 22.8 19.8 -8.0% International 101.1 95.8 90.8 84.8 1.7% Total 125.7 119.2 113.6 104.6 -0.8% Growth per annum 8.3% -5.1% -4.7% -7.9% Source: Visit London

Serviced Residences Market Overview Report Page 5 Prepared for DBS Trustee Ltd July 2010 H - 9

Business demand has been one of the main drivers of London tourism in recent years. Since winning the bid for the 2012 Olympics, the capital has become one of the preferred locations for leading world-class events, supported by major transport developments such as St Pancras International, which opened in November 2007, and Heathrow Terminal 5, which opened to passengers in March 2008.

International visitors typically stay 6.1 days in London, while domestic visitors a shorter period of 2.4 days. Over the past decade, whilst international arrivals have grown strongly, domestic overnight visits have declined steadily, a pattern mirrored across the UK. According to ‘Visit London’, international visitation declined year-on-year by 1.6% in 2007, which was the first fall since 2001.

The decline continued in 2008 with international visitation decreasing 3.8% to 14.8 million arrivals. A steep decline was experienced in some key source markets during Q4 2008 as the economic crisis adversely affected the volume of business travellers to London. However, visits and spending by leisure visitors remained stable due to favourable exchange rates. Tourist expenditure by overseas visitors remained almost flat at GBP8.16 billion in 2008, down 0.4% from 2007. In 2008, London welcomed a total of more than 25 million visitors (including domestic and overseas visitors) spending GBP10.5 billion.

Preliminary statistics for 2009 indicate that the negative trends experienced in 2008 persisted in 2009. Overall visitation and bed nights fell by 4.6% and 7.9% respectively at year end due to a fall in both domestic and international travel. The decline was largely driven by weakening business demand, while leisure travel is expected to have shown growth during the year.

London’s main international source markets all showed significant declines in 2008. This trend continued in 2009 to some extent with visitation from North America, Italy and Ireland showing notable fall in visitation. Nevertheless, growth has gradually resumed with some key international source markets including France and Spain. Some signs of recovery emerged towards end 2008, with trips from North America and the EU 15 countries showing growth in November. With challenging economic conditions facing most of Europe, the recession has curtailed the volume of visitors from the EU region. In contrast, Saudi Arabia, Australia, India and Japan recorded impressive growth primarily driven by favourable exchange rates.

Performance Review Central London Hotel Trading Performance

160 85 80 140 75 120 70 100 65

80 60

55 Occupancy(%)

ADR/RevPAR(GBP) 60 50 40 45 20 40 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: STR Global Average Room Rate RevPAR Occupancy %

Hotel performance in London has historically been strongly supported by corporate travel to the city, which in particular allowed hoteliers to drive up average room rates. With the opening of the O2 Arena and Wembley Stadium in 2007, event tourism is set to strengthen in the coming years.

Serviced Residences Market Overview Report Page 6 Prepared for DBS Trustee Ltd July 2010 H - 10

London is generally perceived to be one of the world’s strongest hotel operating markets as a result of its reputation as both a commercial centre and leisure tourist destination. The city witnesses demand for hotels across all market segments resulting in some of the deluxe hotels achieving strong rates.

The performance of hotels in Central London in 2008 remained relatively robust. Despite a decrease in occupancy rate from 81.7% to 80.4%, Central London hotels ADR grew by 3.6% from GBP126.76 to GBP134.91, which resulted in an overall RevPAR growth of 2.2%.

However in 2008, hotel trading conditions softened. Whilst there was a marginal 1.87% growth in occupancy, ADR declined by 5.4% resulting in an overall 3.6% decrease in RevPAR compared to the previous year.

At year-to-date May 2010, RevPAR improved by 8.2% y-o-y with occupancy increasing by 2.3% and ADR by 5.8%. The improvement was supported by recovering business travel.

Effect of the Olympics

In July 2005, London was chosen to host the 2012 Olympic Games. The London Olympic bid was based to a large extent on the regeneration of East London with focus of the games concentrating at Thames Gateway, with the Olympic village based in Stratford and events being held in East London locations such as ExCeL.

As a result, the biggest beneficiary of the regeneration effort associated with the Games will be East London rather than the West End and Mayfair. However, it is likely that the hosting of the Olympic Games will have positive impact for accommodation across London.

Our research on the significance of the Olympic Games on previous host cities’ real estate markets has demonstrated that the effect is largely indirect and long term. Main legacies include urban regeneration, Olympic Villages, infrastructure improvements, ecological improvements and promotion of the convention sector. As part of the hosting of the Games, large parts of the Thames Gateway will be redeveloped, with significant residential and mixed use development following in light of improved transport links and other infrastructure to the area.

2.3. Serviced Residences Trends

The serviced apartment industry passed a milestone in September 2009 with the announcement that the Association of Serviced Apartment Providers (ASAP) was re-launching as a fully independent association. Membership of the ASAP has grown rapidly in the last two years and now accounts for 30 operators representing over 5,000 apartments throughout the UK. The aim of ASAP is to promote the role of the UK Corporate Housing and Serviced Apartment Industry through increased awareness whilst maintaining the highest standards possible.

According to the ASAP, during 2009, occupancy levels for the London serviced apartment sector was sustained. For the first six months of 2009, average occupancy across the serviced apartment sector in London was recorded at 83%, one percentage point down from 2008 whereas the rest of UK reflected an occupancy of 69%, 2 percentage points below 2008.

The performance underlines the increasing popularity of apartments with the corporate travel buyers. Research by the Institute of Travel & Meetings (ITM) confirmed that serviced apartments have become an integral part of many company accommodation programmes over the last two years. An estimated 57% of corporate travel buyers utilise serviced apartments to reduce costs and they provide an alternative to traditional hotel for short-term stays of less than five days.

Serviced Residences Market Overview Report Page 7 Prepared for DBS Trustee Ltd July 2010 H - 11

Other benefits of serviced apartments compared to traditional hotels are the larger space, facilities including a kitchenette which is useful for travelling families, and for some even the financial alternative to residential purchasing or letting.

2.4. Market Outlook

Following a relatively good year in terms of hotel performance in 2009, the outlook for the London hotel market looks positive. Although leisure visitation is not expected to show strong growth, the city should benefit from strengthening business demand and allowing for further growth in occupancy. Nevertheless, focus will remain on managing costs, driving many business travellers to book their stay in budget to mid-market hotels. Consequently, average room rates are expected to remain static during 2010.

As market conditions continue to improve, the city should benefit from a growing influx of international and business demand. With occupancy already above 80% in 2009, hoteliers should be able to increase average room rates from 2011 onwards. The increase in rate is not expected to be challenged by the expected growth in supply, as this is not deemed to be excessive for the size of the London hotel market. With only ‘normal’ levels of additional hotel supply expected to enter the capital in the years running up to 2012, hoteliers in the capital are expected to benefit directly from the increased influx of visitors to London.

In 2012, occupancy is set to achieve high levels, even compared to the average occupancy rate of 82% seen in 2009, making hoteliers confident that they can command high prices. Although a guarantee was made by the Olympic Committee to cap hotel room rates, this only applies to 1,800 rooms for the International Olympic Committee at USD290, leaving considerable scope for growth in room rates and consequently room yield during the Olympic year.

The London hotel market is not expected to have any sustainability issues following the Games. Tourism arrivals will likely ease slightly in 2013, although the city could benefit from a higher influx of international visitation and events-related trips compared to years before 2012. Both occupancy and average room rates are set to decrease in 2013, although they are likely to remain at high levels and above the levels achieved pre-2012.

Serviced Residences Market Overview Report Page 8 Prepared for DBS Trustee Ltd July 2010 H - 12

3.0 BRUSSELS SERVICED RESIDENCES MARKET OVERVIEW

3.1. Belgium Economic Overview

The Belgian economy started to slow down in 2008, when it posted its lowest growth in five years. Real GDP expanded by a modest 0.8% in 2008, following an average annual growth of 2.7% in the previous five years. Strong growth in GDP was seen in the years leading up to 2008, driven by both domestic demand and exports.

In 2009, the economy contracted by 3.0%, although the country emerged from recession in mid- 2009. GDP expanded on a quarter-on-quarter (q/q) basis in both Q3 and Q4 of 2009, following four consecutive quarterly declines. According to the latest estimate from the National Bank of Belgium, Belgium's GDP expanded 0.3% q/q in Q4 of 2009. Despite the contraction, Belgium’s GDP in 2009 exceeded that of the eurozone which contracted by 4.0%.

According to IHS Global Insight, the Belgian GDP is projected to grow marginally by less than 1.5% in 2010 and 2011. With more than 90% of the country’s GDP dependent on the export of goods and services, the economic downturn severely impacted Belgian’s overall economic performance in the past two years. The gradual recovery of global trade is expected to boost the export sector in the short term. In addition, the weakened Euro will also increase the attractiveness of exports from Europe to other non-European regions. However, the export sector will continue to face increasing competition from emerging countries whose exports are still much cheaper as compared to European exports.

Even as interest rates decline, the tight lending conditions will continue to limit consumer spending in the short term. According to the Belgian Statistical Office, unemployment rate hit a three year high of 8.2% in December 2009. This is still below the eurozone average which stood at 10.0% in February 2010. Data for the first months of 2010 suggests that Belgium's unemployment rate is expected to stabilise at 8.0% in 2010.

Belgium Economic Indicators 2007 2008 2009 2010F 2011F 2012F 2013F 2014F Real GDP growth 2.8% 0.8% -3.0% 1.3% 1.4% 1.5% 1.9% 1.9% Consumer price inflation (av.) 1.8% 4.5% -0.1% 1.7% 1.8% 1.8% 1.9% 1.9% Short term interest rate 4.3% 4.7% 1.3% 0.7% 1.1% 2.4% 3.4% 3.9% Unemployment rate 7.5% 7.0% 7.9% 8.0% 7.9% 7.8% 7.7% 7.5% Exchange rate €:$ (av.) 0.73 0.68 0.72 0.82 0.87 0.80 0.76 0.73 Trade balance (% GDP) 0.7% -3.0% -0.8% -1.0% -1.5% -1.8% -1.9% -2.0% Current account balance (% GDP) 2.2% -2.5% 0.7% 0.4% 0.3% 0.0% -0.1% 0.0% Source: IHS Global Insight, June 2010

Serviced Residences Market Overview Report Page 9 Prepared for DBS Trustee Ltd July 2010 H - 13

3.2. Serviced Residences Market & Performance Review

Definition of Serviced Apartment

Similar to London, Brussels’s serviced apartment sector is significantly more aligned to the recognised hotel model, operating for many years as a fragmented sector. Depending on planning status, serviced apartments can either be sold on a per night basis or only for extended periods and as such are viewed as a direct competitor to hotels.

Typically within Brussels the only differentiating factors from hotels are:

Rooms are equipped with a kitchenette.

Facilities usually limited to a breakfast room but no other public facilities such as conference rooms or restaurants.

Guests may select to have the apartments serviced on a daily or weekly basis depending on length of stay.

Supply

Demand for serviced apartments in Brussels has been strong and growing in recent years as the city is home to several international and government related headquarters. According to the Observatorium of Tourism in Brussels, the total serviced apartment inventory in Brussels is approximately 6,500 units in 2008. This was an increase of 3.7% compared to the 2007 level.

Data on the serviced apartment market in Brussels prior to 2007 is unavailable. Growth in the serviced apartments emerged in the late 1980s and 1990s in response to the growing demand from international expatriates. In addition, the increasing volume of congresses taking place in the city also induced the demand for serviced apartments.

The serviced apartment market in Brussels is very fragmented with majority of the inventory under independent operators managing single stand-alone apartment blocks. At present, there are only a handful of international serviced apartment operators in the market. The remainder of serviced apartment supply are independently managed. Majority of serviced apartments in Brussels provide upscale facilities and tend to be located around Avenue Louise, the main shopping area in Brussels, and in the European quarter.

The following table lists the main serviced apartment operators in Brussels as at June 2010.

Major Serviced Apartment Operators No. of Properties Units Ascott 2 281 Aedifica 8 256 Thon Hotels 2 202 B-aparthotels 4 159 Accor/ Pierre & Vacances 1 139 Marriott 1 57 Groep Coenen 1 56 Suite Home 3 55 Dorint Hotels 1 12 Total 1,217 Source: Jones Lang LaSalle Hotels

Serviced Residences Market Overview Report Page 10 Prepared for DBS Trustee Ltd July 2010 H - 14

Serviced apartments form a large proportion of the accommodation in Brussels. In 2008, the city had approximately 13,000 graded hotel rooms versus 6,500 serviced apartment units. Currently, Brussels has a total of 142 graded hotels, comprising around 14,000 rooms. The hotel market is dominated by mid-tier hotel segments, notably the 4-star hotel segment, followed by the 3-star segment. These mid-tier segments represent a significant proportion (70.8%) of graded hotel room supply and are dominated by international hotel operators such as NH Hotels, Starwood Hotels & Resorts, Accor, and Warwick Hotels & Resorts.

Following the oversupply of hotels experienced in the early 1990s, the Brussels Municipality imposed a moratorium on new hotel construction between 1995 and 2000. Although this did not entirely curb new hotel developments, the measure was effective in restricting new supply, while the market absorbed the existing inventory. In recent years, development activity has been slow with only a few hotel openings reported in 2009 and the start of 2010.

Future supply

We are currently unaware of any new serviced apartment openings in Brussels in the immediate term. The global financial situation triggered a slowdown in demand for both hotel and serviced apartment accommodation. As a result, several developers of serviced apartments have also postponed new developments until market conditions improve.

Similarly, the city’s hotel pipeline is also likely to remain limited over the next few years. We understand only two hotels, a 150 key Aloft and 142 key Park Inn have been proposed and expected to open within the next two years.

Demand

For serviced apartments with no minimum stay requirement, the demand drivers are similar to hotels with determining factors such as brand, star-grading, location and price. For serviced apartments with a minimum stay requirement, the demand drivers tend to be different as they are inclined to compete with the traditional residential rental market.

Brussels: Tourism Trends 2006 – 2009 2006 2007 2008 2009 CAAG 2002-09 Visitor Arrivals (000s) Domestic 339 406 435 492 10.7% International 2,247 2,328 2,413 2,294 0.4% Total 2,586 2,734 2,848 2,786 1.7% Growth p.a. 3.6% 5.7% 4.2% -2.2% Bed Nights (000s) Domestic 630 723 764 867 10.5% International 4,206 4,377 4,507 4,330 0.2% Total 4,836 5,100 5,271 5,197 1.5% Growth p.a. 4.0% 5.5% 3.4% -1.4% Source: Visit Flanders

The Belgian capital is a leading international business hub characterised by a large international community comprising European institutions and foreign journalists, all of whom have contributed to the economic growth of the city.

Serviced Residences Market Overview Report Page 11 Prepared for DBS Trustee Ltd July 2010 H - 15

The key international visitor source markets for Brussels are the UK and France, which together generate around 12 million bed nights annually. Other major international source markets are the Netherlands, Germany, the US and Spain.

Despite its importance as the ‘capital of Europe’, Brussels is not a major leisure destination. It lacks the tourist appeal of other major European cities and struggles to attract tourists during weekends. However, Brussels has gradually gained popularity as a ‘European short-break’ leisure destination. The city has a rich history, famed gastronomy with many restaurants, a variety of architectural styles, and it is easily accessible from many European cities. Brussels has also been focusing on positioning itself as a cultural and high-end destination similar to Amsterdam, Barcelona and Vienna.

Historically, leisure demand comprised around 43% of total bed nights, while the remainder is shared between meetings and conferences (39%) and corporate demand (18%).

Statistics for 2009 indicate a decline in overall visitation and bed nights in Brussels compared to the previous year. The decline was mainly experienced for international demand, while domestic travel continued to show growth. Visitor arrivals began to pick up pace towards the end of 2009 which was reflected in the slower rate of decline in visitor arrivals during the second half of 2009 compared to the same period in 2008.

Performance Review

Demand in Brussels is strongly driven by business and European Union (EU) related demand. Weekend leisure demand is relatively weak, as the city’s popularity as a leisure and weekend destination is low when compared to cities such as Dublin and Amsterdam. As a result of a high dependency on corporate demand, trading performance for hotels tends to be lower than in other European gateway cities.

In 2008, hotel performance remained positive, although a slight drop of 0.9% was reported in occupancy in comparison to 2007. ADR continued to grow by 5.5%, which led to a 3.3% increase in RevPAR in 2008. The onset of the global financial crisis had a severe impact on hotel performance during 2009. Both occupancy and ADR dipped resulting in RevPAR recording a sharp decline of 18.8%.

Since the start of 2010, hotel trading performance in Brussels has seen an improvement reflecting a gradual recovery in the market. At year to date May 2010, RevPAR registered a marginal year-on-year increase of 0.9%, largely driven by occupancy which has grown by 5.6% reflecting the increase in demand.

Trading Performance of Hotels in Brussels 140 100%

120 80% 100

80 60%

60 40% Occupancy (%) Occupancy ADR/RevPAR(€) 40 20% 20

0 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009

ARR (€) RevPAR (€) Occupancy (%)

Source: STR Global

Serviced Residences Market Overview Report Page 12 Prepared for DBS Trustee Ltd July 2010 H - 16

3.3. Serviced Residences Trends

The presence of many international headquarters, EU institutions and the North Atlantic Treaty Organisation (NATO) has been the main demand generators for serviced apartments in Brussels. The development of serviced apartments in Brussels has been aggressive since the 1980s due to robust demand. As these institutions continue to expand, demand from these segments is likely to increase.

In recent years, the entry of international serviced apartment operators into the market has helped consolidate the serviced apartment sector by complementing the offerings of locally managed serviced apartments. However, the majority of the serviced apartments continue to be independently managed.

International serviced apartment operators have differentiated themselves from the local operations in the market through the provision of a higher level and quality of product and services. There are also new local operators who have acquired a number of independently managed assets with future plans to expand their portfolio. For example, B-aparthotels was established through the purchase of the former Europarthotel and Hilton Residence. With the purchase, their portfolio has now expanded to four assets with a total of 159 apartments and they continue to look for opportunities in the city.

In the past, the serviced apartment market in Brussels was not greatly differentiated from residential apartments. The only difference was the presence of a reception counter at the serviced apartment entrance and services offered were limited. The serviced apartment market has since evolved with the entry of aparthotels to the market. Aparthotels provide a similar room product to that of serviced apartments and also offer a wider selection of services to attract guests. An example is the Adagio Aparthotel, which offers a breakfast room and fitness centre.

3.4. Market Outlook

Tourism in Brussels is largely dependent on international arrivals and corporate demand, although the leisure sector is growing in importance. Following a year of weak corporate demand, the city is forecast to experience some recovery in 2010 as global economic conditions start to improve. Visitor arrivals from western European countries and the United States are anticipated to resume with the gradual recovery of the economy.

In addition, corporate demand is also likely to be boosted with the re-opening of the Palais des Congrès which was renamed the Square Brussels Meeting Centre when it re-opened in September 2009. The centre now offers an enlarged area of 55,000 square metres of meeting space and is located within walking distance of the Grand Place. The Square Brussels Meeting Centre is expected to achieve a volume of 250,000 visitors and a turnover of €12 million per annum.

Overall, tourism is expected to show stronger growth from 2011 onwards. Brussels’ appeal as a leisure destination looks encouraging over the medium term. This will be promoted by its growing attraction as a European city-break destination, the increase in exhibitions and cultural events, an expansion of its low-cost airline connections and the development of its tourism marketing strategy.

Growth in visitation coupled with a subdued supply pipeline is expected to positively influence performance of serviced accommodation in the city. Occupancy is expected to reflect growth from 2010 with ADR likely to show marginal growth until 2011.

Serviced Residences Market Overview Report Page 13 Prepared for DBS Trustee Ltd July 2010 H - 17

4.0 BARCELONA SERVICED RESIDENCES MARKET OVERVIEW

4.1. Spain Economic Overview

Data from IHS Global Insight have revealed that in 2009, Spain’s GDP contracted by 3.6% as compared to a positive growth of 0.9% in 2008. The economy contracted for a sixth successive quarter in Q4 of 2009, keeping Spain in recession. The decline has been the largely due to the global financial crisis and the collapse of the country’s real estate housing market.

Over the past decade, the Spanish economy grew at a strong pace due to robust domestic demand, resulting in GDP growth that surpassed the average GDP growth of the eurozone. However, starting in mid-2007, the increase in interest rates and the onset of the credit crunch curtailed economic growth. The economy fuelled by the unprecedented growth of the residential market, plunged at the end of 2008 with dire consequences on the construction sector, one of the largest employers in Spain. The result was a domino effect on other key related and eventually unrelated sectors which led to rising unemployment rates and in 2009, registered a staggering 18.0%. Latest figures have revealed that Spain’s unemployment has continued its downward trend and reached 20.05% for Q1 2010, the highest level in 13 years.

The release of the first-quarter 2010 GDP revealed that Spain emerged from recession. Nevertheless, recent survey data suggest that any recovery will be uneven in 2010 and 2011, with the strong likelihood that the economy will fall into recession by the end-2010. Activity is struggling to cope with the housing market slump, high unemployment, excessive levels of private debt, and the need to restore fiscal discipline. Although liquidity has improved in the money and credit markets, banks, enterprises, and households are still finding it difficult to obtain credit.

IHS Global Insight predicts domestic spending to contract further in 2010 and will remain muted in 2011, partly due to weak investment activity. Unemployment rate is forecast above 15% of the labour force until 2012 as industrial and services companies continue in an attempt to contain costs. Residential construction activity will remain under pressure as housing investment remains depressed.

The short term forecast is for the economy to experience a more protracted period of sluggish activity. This is reflective of the severity of the impact of the collapse of the housing and construction sector which has been further aggravated by the global financial crisis. According to IHS Global Insight’s June 2010 interim forecast, it expects Spain’s real GDP to contract by 0.6% in 2010 before recovering to modest growth of 0.4% in 2011. The outlook in 2010 and beyond remains challenging, as the economy is likely to be weighed down by high unemployment and poor public finances.

Spain Economic Indicators 2007 2008 2009 2010F 2011F 2012F 2013F 2014F Real GDP growth 3.6% 0.9% -3.6% -0.6% 0.4% 1.2% 1.6% 2.0% Consumer price inflation (av.) 2.8% 4.1% -0.3% 1.5% 1.7% 1.8% 2.1% 2.1% Short term interest rate 4.3% 4.7% 1.3% 0.7% 1.1% 2.4% 3.4% 3.9% Unemployment rate 8.3% 11.3% 18.0% 19.5% 17.5% 15.7% 14.9% 13.8% Exchange rate €:$ (av.) 0.73 0.68 0.72 0.82 0.87 0.80 0.76 0.73

Exchange rate €:£ (av.) 0.96 0.89 0.84 0.79 0.75 0.74 0.77 0.67 Trade balance (% GDP) -8.7% -8.0% -4.3% -4.5% -4.3% -4.0% -3.9% -3.7% Current account balance (% GDP) -10.0% -9.7% -5.4% -5.5% -5.3% -4.8% -4.5% -4.0% Source: IHS Global Insight, June 2010F

Serviced Residences Market Overview Report Page 14 Prepared for DBS Trustee Ltd July 2010 H - 18

4.2. Serviced Residences Market & Performance Review

Definition of Serviced Apartment

The quality Barcelona serviced apartment sector is significantly more aligned to the recognised hotel model, operating for many years as a fragmented sector. Depending on planning status, serviced apartments can either be sold on a per night basis or only for extended periods and as such are viewed as a direct competitor to hotels.

Typically within Barcelona the only differentiating factors from hotels are:

Rooms are equipped with a kitchenette.

Facilities usually limited to a breakfast room but no other public facilities such as conference rooms or restaurants.

Guests may select to have the apartments serviced on a daily or weekly basis depending on length of stay.

Supply

According to Turisme de Barcelona, Barcelona serviced apartment inventory comprised a total of 622 units as at February 2010. The number of apartments in the city has grown substantially in recent years registering a CAAG rate of nearly 10% in the last two years. Nevertheless, the overall size of the market remains small when compared to the inventory of hotel accommodation in the city. The table below lists the main serviced apartment operators in Barcelona as of April 2010.

Serviced Apartment Operators No. of Properties Units Atrium Hotels St. Jordi Apartments 6 NA Citadines Barcelona Ramblas (Ascott) 1 131 Atenea Aparthotel 1 105 Derby Hoteles Lofts & Apartments 5 60 Aparthotels Bertran 1 44 Aha Aparthotel Acacia 1 26 Aparthotel Bonanova 1 23 Chic & Basic Apartments 2 16 Splendom Suites 1 11 Silver Aparthotel Barcelona 1 5 Total 20 421 Source: Jones Lang LaSalle Hotels

In Barcelona, the regulated serviced apartment sector is a small proportion of total serviced accommodation which includes hotels. As at May 2010, Barcelona’s hotel supply comprised 323 properties with more than 31,000 rooms. The hotel market has experienced robust growth in hotel rooms increasing by approximately 30% in the past five years. The 4-star segment dominates the total supply, representing half of all hotel rooms available in the city.

Serviced Residences Market Overview Report Page 15 Prepared for DBS Trustee Ltd July 2010 H - 19

Barcelona: Graded Hotel Supply (as at 31 May 2010) Grade Establishments Rooms % of Total 5 star 20 4,515 14.3% 4 star 127 16,198 51.4% 3 star 107 7,523 23.9% Other 69 3,281 10.4% Total 323 31,517 -

Source: Turisme de Barcelona

Future supply

The global financial crisis has impacted development in the serviced apartment market in Barcelona. Currently, we are aware of only one serviced apartment block due to open in the short term. NH Aparthotel with 138 rooms is due to open this year while a 25 unit La Republica Lofts is scheduled to open in 2011. However, in the medium to long term, growth in supply is likely to take place as economic conditions improve and the city further develops as a business destination.

In recent years, despite robust growth in hotel supply, the supply pipeline in Barcelona remains buoyant. The global financial crisis did not result in the postponement of any hotel openings in the city, as the number of rooms increased by 4.8% in 2008 and 6.1% in 2009 respectively. In Q1 2010, two properties totalling 584 rooms have opened. A further 1,765 rooms have been proposed for 2010 and an additional 537 rooms in 2011. However, many hotel projects have also been suspended or postponed. It is likely that many of these projects will be further delayed given the country’s current economic situation. Based on the current supply pipeline, the city’s hotel inventory is expected to increase by 7.6% in 2010 and 1.6% in 2011.

Demand

Barcelona: Tourism Trends 2007 - 2009 2007 2008 2009 CAAG 2002-09 Visitor Arrivals (000s) Domestic 2,064 1,943 2,011 6.6% International 5,045 4,716 4,465 10.0% Total 7,108 6,659 6,476 8.8% Growth p.a. 6.0% -6.3% -2.7% Bed Nights (000s) Domestic 3,133 2,860 - - International 10,488 9,625 - - Total 13,620 12,485 12,817 5.7% Growth p.a. 3.2% -8.3% 2.7% Source: Turisme de Barcelona

Barcelona is one of Europe’s largest urban clusters and the capital of Catalonia, Spain’s most productive region. With a diversified economy and a strong service sector, the city enjoys a significant industrial base and a high international profile.

One of the city’s main strengths is its balanced tourism demand base, with 48% of total arrivals comprising corporate demand and the remainder leisure demand. This can be attributed to the fact that Barcelona remains the only city in the world with nine UNESCO World Heritage buildings and this has been a big attraction for leisure demand. Furthermore, the city has

Serviced Residences Market Overview Report Page 16 Prepared for DBS Trustee Ltd July 2010 H - 20

positioned itself as a leading urban leisure tourist destination in Europe, not only for weekend breaks but also for longer stays.

The principal launch-pad for tourism in Barcelona was the hosting of the 1992 Summer Olympic Games, which allowed the city to propel its international profile, followed by the boom in low cost airlines boosting travel within Europe. In 2008, international visitor arrivals accounted for 71% of total arrivals in the city compared to 56% in 1992.

Barcelona also plays a major role in the conference market in Spain. The city offers a diverse choice of high-quality Meetings, Incentives, Conventions and Exhibitions (MICE) facilities, such as the Fira de Barcelona and the Barcelona International Convention Centre. According to a report by Turisme de Barcelona, 2008 was a record year in terms of number of events and participants. In 2008, the city hosted a total of 2,482 events and about 696,000 participants, representing year-on-year increases of 40% and 11% respectively compared to 2007. The MICE market generated an estimated 22.5% of total bed nights in the city in 2008, compared to 17.1% in 2007. The global financial crisis has since halted further growth and resulted in a decline in events and participants of 25.2% and 17.2% respectively during 2009.

In 2008, visitor arrivals to Barcelona registered negative growth for the first time since 1997. This was largely due to the onset of the global financial crisis and the considerable impact on the city’s economic activities. The number of arrivals and bed nights fell by 6.3% and 8.3% respectively, returning to levels achieved in 2006. The decline continued in 2009 and was primarily due to plunge in international arrivals and bed nights. Domestic arrivals, on the other hand, showed slight growth compared to 2008.

Majority of Barcelona’s main source markets are countries located in Europe including the United Kingdom (UK), Italy, France and Germany. In addition, the United States (US) is also a key source markets to the city. Tourism demand from all main source markets showed a decline in 2009, with the exception of the US.

Performance Review

Barcelona Hotel Trading Performance 250 90% 80% 200 70% 60% 150 50% 40% 100

30% Occupancy % ADR/RevPar (€) 50 20% 10% 0 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009

Average Room Rate RevPAR Occupancy Sources: STR Global

According to Turisme de Barcelona, occupancy in Barcelona’s serviced apartments has fallen since 2007 when it recorded an average level of 75%. In 2008 and 2009, average monthly occupancy fell to 68.2% and 62.1% respectively.

In 2008, Barcelona’s hotel market started to experience the impact of worsening economic conditions. The situation was further aggravated by a continuous growth in hotel additions and

Serviced Residences Market Overview Report Page 17 Prepared for DBS Trustee Ltd July 2010 H - 21

resulted in a 9.8% y-o-y decline in RevPAR. This decline was compounded by a reduction of 10.4% in occupancy while average room rates remained relatively static over the period.

The decline in RevPAR continued in 2009 as average room rates plunged by 22.2%. Occupancy, which in contrast grew 12.1%, was insufficient to sustain RevPAR. However, the start of 2010 has shown some encouraging results with decline in RevPAR easing to a 3.0% at year-to-date May 2010.

4.3. Serviced Residences Trends

Although Barcelona has a large inventory of serviced apartments, only a few are managed under a branded or international operator. With Barcelona being a key leisure destination in Europe, the supply of serviced apartments has not historically been the city’s main focus. This is likely to change to some extent as the city’s importance as a business destination grows.

Similar to other European cities, the serviced apartment market in Barcelona is very fragmented and is not expected to change in the short term. The collapse of the residential property market in Spain has left many developers with unsold apartments. In a bid to increase revenue, many of these projects have been converted to serviced apartments, resulting in mixed blocks of residential flats and serviced apartments. However, our research indicates that corporate travellers are likely to select serviced apartments which are branded and provide professional services over a stand alone product located in a residential building.

In recent years, the combined impact of conversion of residential units to serviced apartments and strong growth in hotel supply has led to an oversupply in accommodation in Barcelona. The soft market conditions have deterred both serviced apartments and hotels operators to enter the market for the time being. As a result, it is unlikely that the supply of new serviced apartments will increase substantially in the medium term.

4.4. Market Outlook

Overall, tourism remains subdued and in particular international visitation and bed nights. With corporate demand resuming in a number of destinations in Europe, Spain is forecast to experience some strengthening in business demand. The MICE market, however, is likely to remain weak through 2010 until economic conditions have substantially improved. Some notable uplift should also be noticed in this sector from 2011 onwards. Tourism awareness should also be supported by continuous promotional campaigns and investments in the city’s infrastructure.

As the economy is expected to recover in the medium term and private consumption to gradually recover in 2011, the hotel and serviced apartment sector should hence benefit with some growth in occupancy levels. We expect corporations and leisure travellers to continue to be price sensitive which will limit growth in average room rates. Growth in average room rates is more likely from 2011 onwards. Overall Barcelona is likely to remain one of the top performers in the European hotel market, well positioned as both a leisure and conference destination.

Serviced Residences Market Overview Report Page 18 Prepared for DBS Trustee Ltd July 2010 H - 22

5.0 BERLIN SERVICED RESIDENCES MARKET OVERVIEW

5.1. Germany Economic Overview

The German economy is the largest national economy in Europe and is highly dependent on exports, which accounts for more than one-third of the annual national output. Consequently, the external sector has traditionally been a key element in the country’s macroeconomic expansion.

Since 2008, the German economy has been greatly affected by the global financial crisis. Deterioration during the second half of 2008 and early 2009 was largely due to negative net exports, as the export import imbalance rapidly widened.

Although the exceptionally sharp drop in German GDP by nearly 5% in 2009 has left the labour market surprisingly unscathed; fragile financial markets, tight credit conditions, and a need for consolidation of public finances is likely to restrain growth for many quarters ahead. Stagnating GDP in Q4 of 2009 and most likely Q1 of 2010 have been caused by temporary factors, notably the backlash effect from the expiry of the car scrapping subsidy and unusually harsh winter conditions.

Underlying growth momentum in 2010 will therefore be reasonable in general, as illustrated by strong orders data in early 2010 as well as ongoing improvements of most leading indicators throughout Q1. Notwithstanding any impact from the ongoing Greek crisis, second-quarter growth is expected to be strong. The June interim forecast predicts GDP growth to recover from -4.9% in 2009 to 2.0% in 2010 and 1.7% in 2011. The critical factor for German growth in 2010/11 will be the momentum of global demand.

Consumer price inflation increased from 1.6% in 2006 to 2.3% in 2007 and peaked at 2.6% in 2008, reflecting the three-point hike in value-added tax (VAT) in 2007 and separate energy and food-price increases. The materialisation of the global recession has unwound these commodity price increases and prevented the emergence of any delayed second-round effects that could have boosted underlying inflation. Inflation has remained remarkably subdued in recent months despite picking up from the 2009 lows. IHS Global Insight expected the annual average inflation to pick from 2.3% in 2007 to 2.6% in 2008 and remain subdued in 2010 (1.0%). Continuing strong domestic and international competition should limit both price and wage pressures in the medium term.

Germany Economic Indicators 2007 2008 2009 2010F 2011F 2012F 2013F 2014F Real GDP growth 2.6% 1.0% -4.9% 2.0% 1.7% 1.8% 1.8% 1.9% Consumer price inflation (av.) 2.3% 2.6% 0.3% 1.0% 1.3% 1.4% 1.5% 1.5% Short term interest rate 4.28% 4.69% 1.33% 0.69% 1.13% 2.39% 3.41% 3.86% Unemployment rate 9.0% 7.8% 8.1% 7.8% 7.3% 6.8% 6.2% 5.8% Exchange rate $:€ (av.) 0.68 0.72 0.69 0.87 0.83 0.78 0.75 0.71 Exchange rate €:£ (av.) 0.68 0.80 0.89 0.84 0.78 0.75 0.74 0.76 Trade balance (% GDP) 7.7% 6.6% 5.2% 5.5% 5.5% 5.6% 5.5% 5.3% Current account balance (% GDP) 7.7% 6.7% 5.0% 5.7% 5.5% 5.6% 5.5% 5.5% Source: IHS Global Insight, June 2010

5.2. Serviced Residences Market & Performance Review

Definition of Serviced Apartment

The German serviced apartment sector is significantly more aligned to the more recognised hotel model, operating for many years as a fragmented sector. There is no minimum stay requirement

Serviced Residences Market Overview Report Page 19 Prepared for DBS Trustee Ltd July 2010 H - 23

and there is no real differentiation between serviced apartments and hotels other than the size of the unit and the inclusion of a kitchenette.

Supply

Berlin’s hotel market, as at July 2010, included 293 quality hotels with a total of approximately 43,250 rooms. The majority of the inventory is in the 3 and 4-star segment, jointly representing approximately 70.4% of total hotel supply in terms of hotel beds. Following restricted supply growth during 2000s, the hotel bed supply in Berlin has strengthened significantly. Between 2003 and 2007, the supply of hotel beds showed an average annual increase of 6.1%, compared to an average annual increase of 2.5% during 2000 to 2003.

Berlin Graded Hotel Supply (as at July 2010) Grade Establishments Rooms % of Total 5-star 23 6,182 14.3% 4-star 108 19,459 45.0% 3-star 109 10,984 25.4% Other 53 6,621 15.3% Total 293 43,246 -

Source: Jones Lang LaSalle Hotels

As at July 2010, there are approximately 29 establishments with 2,033 apartment units in Berlin. Some of these properties are pure serviced apartment operations while others are hotels which offer larger rooms equipped with a kitchenette as part of their room inventory. Within Berlin, there are a very large number of individual apartment units within residential developments that are operated independently. Our supply analysis only includes established/branded serviced apartment properties.

The major operators within Berlin are Adina (part of the same group as the established serviced apartment chain from Australia – Medina Apartments), Derag Hotel & Living, Adagio City Aparthotel (created in 2007 by Accor and the Pierre & Vacances Center Park Group to meet the needs of business travellers and tourists on medium and long stays in major European cities) and Citadines. The recent new serviced apartment supply in the market includes the Adina Apartment Hotel Berlin Hauptbahnhof as well as the Adagio City Aparthotel Berlin Kurfürstendamm which entered in late 2009.

Future supply

Although the hotel supply pipeline has slowed down since 2005, numerous projects are currently under construction or in the planning stage. As at July 2010, there are 22 hotels under construction, which will add approximately 4,912 guest rooms to the Berlin hotel market by 2012. In addition, another 16 hotel projects are in final planning stages which are likely to be completed by 2012. In contrast to recent years, majority of the projects are in the 4-star hotel segment which accounts for approximately 50.5% of all guest rooms under construction or in the planning stage. Among these projects, there is only one serviced apartment planned, namely the Adina Apartment Hotel Berlin Hackescher Markt. The property will comprise 145 units, with opening October 2010 and will be managed by Adina Apartment hotels.

Due to the current weak economic climate, several projects may not proceed as proposed. If all projects materialise, hotel supply will grow by 5.3% in 2010 and 6.1% in 2011.

Serviced Residences Market Overview Report Page 20 Prepared for DBS Trustee Ltd July 2010 H - 24

Demand

Berlin: Tourism Trends 2007- 2009 2007 2008 2009 CAAG 2002-09 Visitor Arrivals (Millions) Domestic 5.030 5.152 5.382 3.9% International 2.555 2.754 2.881 9.9% Total 7.585 7.907 8.263 5.6% Growth p.a. 7.2% 4.2% 4.5% Bed Nights (Millions) Domestic 10.672 10.726 11.414 3.5% International 6.614 7.045 7.457 10.0% Total 17.286 17.771 18.871 5.6% Growth p.a. 8.6% 2.8% 6.2% Source: Statistical Office Berlin-Brandenburg

Berlin is the most visited city within Germany, attracting both leisure and business travellers. It has also grown popular as a city-break destination in recent years. The conference segment in particular has grown stronger, with the city continuously ranking among the leading conference and congress destinations in the world. Accordingly, visitation to Berlin has increased considerably over the last five years. The city is also planning several infrastructural projects to support the attractiveness of Berlin as a tourism destination. The most important is the development of the Berlin Brandenburg International Airport (BBI), which should enhance international accessibility to the city.

Domestic travellers are by far the most important source of visitation in Berlin, representing around 65% of total arrivals in 2009. The share of non-domestic travellers has, however, grown steadily in recent years, due to improved international flight connections and the city’s overall growing international popularity. In 2000, while 27.4% of all bed nights were of international origin, their market share has risen to 34.9% by 2009. Major foreign source markets in 2009 included Scandinavia (13.2% of all international bed nights), the Benelux countries (11.0%), Italy (9.7%), the United Kingdom and Ireland (9.4%), Spain & Portugal (8.3%), and the United States (7.8%).

According to the International Congress and Convention Association (ICCA), Berlin is ranked fourth among the world's leading congress and conference destinations in 2009 (after Vienna, Barcelona and Paris) with 129 large international events taking place in the city, gaining one position compared to 2008. This positive trend continued in 2009, when the ICC Berlin, the conference centre in Berlin, was awarded for by the World Travel Award for the fifth time as the 'World Leading Conference & Convention Centre'. We have been advised that the selection for the 2010 title of the "World Leading Conference and Convention Centre" by World Travel Award has yet to take place. Although the Berlin senate has plans to renovate the ICC Berlin, final approval is still outstanding. Details of the renovation plans are not available.

Serviced Residences Market Overview Report Page 21 Prepared for DBS Trustee Ltd July 2010 H - 25

Performance Review

Berlin Hotel Trading Performance

120 80%

100 70% 80

60 60%

40 Occupancy (%)

ADR/RevPAR(EURO) 50% 20

0 40% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Note: 3 to 5-star hotels ARR RevPAR Occupancy Source: STR Global

There are no performance statistics for serviced apartments in Berlin. However, given the nature of the industry, serviced apartments tend to compete with hotels based on price and location as there is no limitation on the minimum stay required. As such, there is very little distinction between the demand for serviced apartments and hotels in the city.

Despite an expanding tourism demand, Berlin hoteliers continue to struggle with ongoing growth in supply resulting in intense market competition. New hotels typically enter the market with attractive opening rates and place further downward pressure on the rates of existing properties.

In 2008, occupancy surpassed the 70% level for the first time in a decade, however ADR declined by around 10.3% resulting in a room yield decline of 8.2%. In 2009, occupancy registered just below 70%, representing only a very small decline, while rates decreased significantly by a further 9.4%. As a result, RevPAR suffered and fell 10.3% to €57.61. Compared to other key cities within Germany such as Munich and Frankfurt, which experienced large declines of 19.4% and 14.0% respectively, Berlin’s decline was one of the lowest among the various German cities.

For year-to-date May 2010, Berlin hotels improved in occupancy and ADR performance (+4.7% and +7.4%, respectively) to achieve a RevPAR growth of 12.5% over the same period in 2009. This positive development is mainly the result of the generally weak economic conditions in the previous year, which also resulted in stronger trade fair and congress business in the first quarter of 2010.

5.3. Serviced Apartment Trends

Like many other markets in Europe, the serviced apartment sector in Berlin is relatively new and fragmented with very little official information on performance and supply. Existing serviced apartments in Berlin tend to be located in less prominent/central locations compared to hotels, and there are no specific trends related to where these properties are located. Many are conversions of either residential properties or office buildings. As Berlin is more of a leisure destination compared to Munich, the market is even less developed.

As there is no legislation on the minimum stay requirement, many of the serviced apartments in Munich compete on the same level as hotels. Longer stay corporate travellers tend to be accommodated within company leased or owned residential properties rather than in serviced apartments. However, this trend may change as better and larger serviced apartments catering to the longer stay market are added to the market.

Serviced Residences Market Overview Report Page 22 Prepared for DBS Trustee Ltd July 2010 H - 26

The key benefits of using serviced apartments compared to owning or leasing residential apartments is having a fully equipped apartment with kitchenette, no deposit or agency commission, no cosmetic repairs at the end of the period, short notice period and rent with heating and bills included. Regular cleaning of the apartments can also be arranged by the management with an additional fee.

5.4. Market Outlook

The year of 2010 is expected to continue to be challenging for the tourism industry. The weakened economic situation resulting in a fall of disposable incomes across the globe and unemployment rises resulted in lower inbound travel to the city. Leisure travel and event activity are likely to continue to be affected in particular the Meetings, Incentives, Conventions and Exhibition (MICE) business. As these are the main demand segments for Berlin, the city is not anticipated to see a robust growth in demand in 2010.

In the longer term, however, Berlin enjoys good fundamentals for positive tourism development, with the new Berlin Brandenburg International Airport (BBI) set to enhance the city’s accessibility. In addition, several new developments planned will further improve the city’s attractiveness for both leisure and business travellers. In addition, as a relatively cheaper conference destination option in comparison to other European cities, Berlin can continue to attract MICE demand to the city.

Both occupancy and average room rates are expected to remain weak due to lower demand. At the same time, hotel trading could be impacted by the proposed pipeline of new hotels under construction or at proposed status if they materialise. However, as previously highlighted, in light of the current economic environment, it is likely that not all the proposed and planned hotel projects will materialise.

In the longer term, Berlin appears well positioned for further performance growth. The conference and congress segment still offers great potential for future growth, supported by the planned ICC renovation as well as the improved accessibility of the city with opening of the BBI.

These various factors are likely to attract more international visitors and allow for a growth in average room rates. With trading performance still below levels achieved in 2000, the Berlin hotel market offers great potential for future growth and hence is expected to recover quickly once economic conditions improve.

Serviced Residences Market Overview Report Page 23 Prepared for DBS Trustee Ltd July 2010 H - 27

6.0 MUNICH SERVICED RESIDENCES MARKET OVERVIEW

6.1. Serviced Residences Market & Performance Review

Definition of Serviced Apartment

The German serviced apartment sector is significantly more aligned to the more recognised hotel model, operating for many years as a fragmented sector. There is no minimum stay requirement and there is no real differentiation between serviced apartments and hotels other than the size of the unit and the inclusion of a kitchenette.

Supply

There are no official serviced apartment statistics on Munich however, our research indicates that there are approximately 28 establishments with a total inventory of 2,499 apartment units in the city as at July 2010. Some of these properties are pure serviced apartment operations while others are hotels which offer larger rooms equipped with a kitchenette. The pure serviced apartment operations tend to have fewer public facilities such as meeting rooms and restaurants. However, those which are part of a hotel typically provide facilities and services of a hotel, for instance, restaurants, fitness centre etc. Our supply analysis includes established/branded serviced apartment properties only.

Although we are unable to quantify the changes in the serviced apartment supply due to the lack of official statistics, our research indicate that the serviced apartment markets is a relatively new segment that has developed in the last decade. The major operators within Munich are Ghotel, Derag Hotel & Living and The Ascott Limited.

According to official statistics, as at July 2010 the hotel inventory in Munich comprises 165 graded hotels totalling some 24,202 guest rooms. The inventory is divided almost equally between the 3-star category (40.0%) and the 4-star category (36.4%). From the early 2000s to 2007, Munich experienced a relatively moderate supply growth compared to other German cities.

In 2008, seven hotels entered the market with a total of 789 rooms. In 2009, a further ten hotels opened totalling 1,520 rooms. For year to date July 2010, only two hotels have opened contributing an additional 512 rooms to the city.

Munich: Graded Hotel Supply (as at July 2010) Grade Establishments Rooms % of Total 5-star 12 2,776 11.5% 4-star 60 11,853 49.0% 3-star 66 6,682 27.6% Other 27 2,891 11.9% Total 165 24,202 - Source: Jones Lang LaSalle Hotels

Serviced apartments comprise approximately 10% of total accommodation supply in the city and the majority of serviced apartments are in the three and four star category.

Serviced Residences Market Overview Report Page 24 Prepared for DBS Trustee Ltd July 2010 H - 28

Future supply

There are currently three planned serviced apartment projects in Munich, one under construction while the other two are proposed projects. If all three projects materialise, Munich will have an additional 288 apartments by early 2012. These projects include a 123 unit Adagio, a brand created in 2007 by Accor and the Pierre & Vacances Centre Park Group and this will be their first property in the city. Derag, another serviced apartment operator is also planning a 43 apartments project in the 3 to 4-star category. The only project currently under construction is the 122 keys Residence Inn by Marriott International which is due to be completed by late 2011.

In terms of hotel accommodation, Munich experienced relatively moderate supply growth in the past, especially in city-centre locations. This is expected to change in the short to medium term with several projects either under construction or in the planning stage. While recent openings mainly focused on the budget and mid-market segments (2 to 3-star hotels), plans for future hotels include a large proportion of upscale products (4- star hotels).

Demand

Munich: Tourism Trends 2007 - 2009 2007 2008 2009 CAAG 2002-2009 Visitor Arrivals (Millions) Domestic 2.604 2.730 2.877 3.2% International 2.098 2.075 2.117 3.3% Total 4.702 4.830 4.994 3.3% Growth p.a. 7.2% 2.7% 3.4% Bed Nights (Millions) Domestic 5.010 5.263 5.460 2.4% International 4.477 4.585 4.462 3.2% Total 9.487 9.847 9.922 2.8% Growth p.a. 6.8% 3.9% 0.8% Source: Statistical Office Munich

Munich is the capital of Germany’s most southern province, Bavaria, and is Germany’s second most visited city after Berlin. Key demand generators include the trade fair and the congress centre. Munich is also a popular destination for leisure travellers and as well as visitors from the United States (US) and Asia who are visiting Europe. Munich is also popular for city breaks and offers diverse cultural attractions, such as museums, theatres and castles. The city is also a starting point for day trips to the numerous attractions in the region, such as the Alps, Neuschwanstein castle and Salzburg.

The city also benefits from a well-balanced business mix, with hotel demand almost equally divided between business and leisure travellers. The proportion of foreign visitors in Munich is high when compared to other German cities. Furthermore, the number of international bed nights has grown more strongly than domestic demand during recent years. The CAAG of international bed nights between 2002 and 2007 was 8.4% while domestic bed nights was only 4.8%. This is generally positive, as foreign visitors tend to be less price-sensitive than domestic travellers and also tend to stay for a longer period of time. On average, domestic visitors to Munich stay for 1.9 nights while the international visitors typically stay for 2.2 nights.

In 2009, visitor arrivals saw a healthy increase of 3.4% while bed nights only improved by 0.8% over the previous year, indicating a shorter length of stay compared to previous years.

Major international visitor source markets include the United States (US) (13.4%), Italy (11.6%), the United Kingdom (7.6%) and Switzerland (6.6%). According to the Munich Tourism Office,

Serviced Residences Market Overview Report Page 25 Prepared for DBS Trustee Ltd July 2010 H - 29

the city is one of the favourite destinations in Germany for visitors from the US (597,412 bed nights in 2009), Russia (191,657 bed nights) and the Arabian Gulf States (270,891).

Performance Review

Munich Quality Hotel Trading Performance 140 80% 70% 120 60% ) 100 50% 80 40% 30% 60 Occupancy (%) ADR/RevPAR (€ 20% 40 10% 20 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD YTD Feb- Feb- 09 10 Note: Based on 3 star and 5 star hotels Source: STR Global ARR (€) RevPAR (€) Occupancy (%)

There are no available performance statistics for serviced apartments, however, given the nature of the industry, serviced apartments tend to compete with hotels based on price and location as there is no limitation on the minimum stay required although discounts are generally provided for longer stays. There is therefore very little distinction between the demand for serviced apartments and hotels in Munich.

In general, Munich’s hoteliers enjoy a well-balanced demand mix, with leisure tourists filling hotels at weekends and during holiday seasons and business demand sustaining occupancy levels during the week. This has allowed local hoteliers to achieve relatively stable results throughout the year.

Following two strong years of growth, RevPAR declined by 10.0% in 2008, down to 2004 levels of about € 80 in real terms. In 2009, RevPAR declined by a further 14.9% as a result of a 10.7% decline in rates to the € 100 mark and a 4.7% decline in occupancy. For the year-to-date May 2010, RevPAR improved significantly by 22.0% over the same period last year with growth in both rates (+11.8%) and occupancy (+9.2%). This upward trend reflects the aftermath of the credit crunch and the weakened economic conditions in the previous year.

6.2. Serviced Apartment Trends

Like many other markets in Europe, the serviced apartment sector in Munich is relatively new and fragmented with very little official information on performance and supply. Existing serviced apartments in Munich tend to be located in less prominent/central locations compared to hotels, however, there are no real trends related to where these properties are located. Many are conversions of either residential properties or office buildings.

As there is no legislation on the minimum stay requirement, many of the serviced apartments in Munich compete on the same level as hotels. Longer stay business corporate travellers also tend to be accommodated within company leased or owned residential properties rather than in serviced apartments. However, this trend may change as better and larger serviced apartments catering to the longer stay market are added to the market.

The key benefits of using serviced apartments compared to owning or leasing residential apartments is having a fully equipped apartment with kitchenette, no deposit or agency

Serviced Residences Market Overview Report Page 26 Prepared for DBS Trustee Ltd July 2010 H - 30

commission, no cosmetic repairs at the end of the period, short notice period and rent with heating and bills included. Regular cleaning of the apartments can also be arranged at an additional fee.

6.3. Market Outlook

Munich remains an important tourism city in Germany and Europe with a well-established demand base. The long term outlook for the market is encouraging as the city benefits considerably from its strong economic base. This will boost corporate and international demand. Notably, international travellers tend to accept higher price levels than domestic travellers. A long-term positive impact can also be expected from the planned third runway at the airport and plans for an improved accessibility to the city centre.

The short-term outlook, however, is expected to be challenging. The weakening of the economy as a result of the global financial crisis is likely to continue throughout 2010. As disposable incomes fall across the globe and unemployment heightens, inbound and domestic travel is expected to suffer. Both MICE and leisure travel in particular will be affected. Although Munich is expected to suffer from the tight economic climate, the city on the other hand should benefit from a stronger trade fair year, with the BAUMA taking place in April. From 2011, Munich is anticipated to further recover, benefiting from strong demand from wealthy tourists, particularly from Russia and the Arabian countries and corporate business recovering along with the economy.

In the medium to longer term, we expect to see positive growth in occupancy and average room rates. Munich is expected to remain a key tourism destination in Germany, and its position is set to strengthen even further following the completion of infrastructure projects already under way. In particular, the extension of Munich airport is expected to influence demand positively and therefore drive up occupancy as well as average room rate levels.

Serviced Residences Market Overview Report Page 27 Prepared for DBS Trustee Ltd July 2010 H - 31

7.0 FRANCE SERVICED RESIDENCES MARKET OVERVIEW

7.1. France Economic Overview

Similar to the rest of the European Union (EU) economies, the French economy has not been spared the impact of the global financial crisis. The economy has however weathered the crisis better than most other big EU economies but nonetheless, France's real GDP contracted 2.5% in 2009. In Q4 of 2009, the country’s GDP accelerated and exceeded forecasts which helped moderate the overall decline for the year. Although growth has continued into 2010, it remains weak. A forecast by IHS Global Insight expects the country’s GDP in 2010 to grow a marginal 1.3%.

In 2009, despite a decline in annual inflation, this was insufficient to restrain the country’s recession. The job market continued to rapidly deteriorate as companies implemented cost cutting measures during the year. As the economy slowly emerges from the crisis in the early months of 2010, IHS Global Insight forecasts that consumer price index will start to rise. However, with a tight labour market unlikely to ease till the second half of the year compounded with a tight credit environment, consumer spending will remain constrained. On a more positive note, increase in savings from the precautionary measures adopted during the tough economic situation in 2009 is likely to result in an increase in consumer spending once the market sentiments improve.

An improvement in the labour market is critical for a sustainable recovery in France. While unemployment has been trending downwards since 2005, it reached a 10-year high during Q4 of 2009. For the first time since the second quarter of 2008, the unemployment rate did not increase during Q1 of 2010, raising hopes that the worst may be over. Demand levels continue to remain soft, along with tight credit conditions and declining profit margins, which will affect the labour market as companies continue to be financially prudent.

Investment sentiment is expected to remain subdued as a result of various factors including lack of funding, declining profit margins, and a stagnation in construction activities. A weaker Euro is likely to boost exports, although external demand is expected to remain relatively low.

Moving forward, with an anticipated gradual improvement in economic conditions, rising global demand and a decline in unemployment rates, this is likely to lead to GDP growth in 2011.

France Economic Indicators 2006 2007 2008 2009 2010F 2011F Real GDP growth 2.3% 2.3% 0.1% -2.5% 1.3% 1.5% Source: IHS Global Insight

7.2. Tourism

France is the most visited country in the world, ahead of the United States and Spain, but it is only ranked third in terms of tourism receipts. The total number of visitors to France peaked in 2007 at 81 million but fell by 2% in 2008 and 6% in 2009 to 74.2 million.

According to a joint survey carried out by the National Institute for Statistics and Economic Studies France (INSEE) and Sofres, the French tourism industry has been adversely impacted by the global financial crisis.

As the capital city of France, Paris is well-known for its cultural heritage, luxury shopping avenues and world-renowned gastronomy. The city and its immediate region, which includes the

Serviced Residences Market Overview Report Page 28 Prepared for DBS Trustee Ltd July 2010 H - 32

famous Versailles Palace and Euro Disneyland, is the most visited region in France and accounts for approximately 30% of total visitor arrivals to France each year.

Both international as well as domestic travel volume dropped as global economies struggled with a decline in consumer spending and in particular discretionary spending including travel. Of the total visitation to France, the segment which experienced the steepest decline was the corporate segment which dipped by approximately 10%.

In terms of geographic source markets, visitors from Germany and Italy were least impacted by the ongoing economic conditions. The weakened Euro in 2009 was a significant advantage to some of France’s major in-bound markets including Asia and the United States. While there was a significant decrease in visitors from Britain, Spain and the US, visitors from Asia remained relatively stable. Domestic demand fell marginally by 3.2% in volume of room nights but lost 5.5% in tourism receipts.

In 2009, the increased number of visitors from the U.S and Asia was key in helping boost the tourism sector. In the long term, France will continue to benefit from its diverse tourist attractions and experiences and will remain as one of the most sought-after tourist destinations in the world.

7.3. France serviced apartments market

Definition

It is considered that in most locations in France, a serviced apartment is an approved commercial accommodation facility, operated year round or by seasonality. Serviced apartments can include a complex of furnished rooms, apartment blocks or low-rise estates which are sublet by the day, week or month for leisure or corporate guests who are not applying for permanent residence in France.

Serviced apartments are referred to as “résidence de tourisme” in France and have a separate legal status. These accommodation facilities are required to offer basic services such as laundry, cleaning, breakfast and reception. Apartments are also equipped with a kitchen.

Depending on their locality, serviced apartments are typically categorised as "mountain", "countryside", "seaside" and "urban". The urban serviced apartments usually cater to a more diversified clientele. On a nation wide level, corporate demand represents approximately 70% of the total demand. For cities which attract a significant proportion of leisure visitors such as Paris, the proportion of corporate demand is lesser. In the case of Paris, corporate demand is at 60%.

The average length of stay is approximately six days for France. We note that in Paris, length of stay for some 3-star serviced apartments is only slightly above hotels.

7.4. Supply

The apart-hotel market in France has grown rapidly in recent years as a result of increased flexibility on planning regulations as compared to the more stringent regulations imposed on hotel development until 2008. Fire and safety regulation also tends to be more flexible for serviced apartments than hotels.

As at May 2010, it has been estimated that there were approximately 1,781 serviced apartments in France. The urban segment represents around 15% of this national supply with 344 properties recorded by the Syndicate National des Résidences de Tourisme (SNRT). The average facility size is 90 apartment units. Supply of urban serviced apartments has grown by 110% from 2003 to 2009, which is higher than any other accommodation segment in the country.

Serviced Residences Market Overview Report Page 29 Prepared for DBS Trustee Ltd July 2010 H - 33

Serviced apartments are also seen as attractive investments for individuals as they are able to purchase real-estate properties which can be placed back into a rental pool. These types of investments offer owners tax free revenues and VAT exemption among other fiscal advantages on condition that the apartment is leased to a single operator for a minimum of nine years.

The lack of available land for new developments in prime locations has often constrained developments to secondary locations. Some developers have been more focused achieving profit from the real estate development and at times, do not assess if market conditions can support the operation of a serviced apartment. Hence, with the dismal economic conditions in 2009, operators with a strong pipeline of expansions such as Quiétude, Maison de Biarritz, Mona Lisa, Pearl Hotel, Atrium and Antaeus have been forced into foreclosure as they default on their financial repayments. This has resulted in about 70 "residences de tourisme" in France without an operator. In this case, the private owner is at risk of losing his tax incentives as well as loss of rental.

The multi-ownership model, though very competitive and efficient for developers, carries some risk. Another issue operators must face with this ownership model is the difficulty to operate with multiple owners including complication and a general consensus to undertake any renovation or refurbishment works.

Main urban serviced apartments groups in France Star No. of Name Group Mains location Grading Properties Citéa SG City / P&V 2 56 Lyon, Lille, Marseille, Nice, Paris+IDF, Toulouse AppartCity Groupe Menguy 2 48 Lyon, Lille, Paris+IDF, Toulouse, Bordeaux Séjours Affaires Réside Etudes 4 41 Grenoble, Lyon, Lille, Paris+IDF, Toulouse, Bordeaux Park and Suites Suites Résidence 3 40 Grenoble, Montpellier, Paris+IDF, Toulouse, Bordeaux Citadines Ascott 3/4 34 Lyon, Lille, Marseille, Nice, Paris+IDF, Toulouse Adagio Accor/ P&V 3/4 22 Grenoble, Marseille, Paris+IDF, Toulouse, Bordeaux Residhome Apparthotel Réside Etudes 4 19 Grenoble, Metz, Nancy, Nantes, Paris+IDF, Toulouse Resid’Hôtel ResidHotel – Cap 3/4 11 Cannes, Lyon, Bordeaux, Grenoble, Marseille, Paris Résidences Odalys Groupe financière 2/3 4 Cannes, Lyon, Nice, Nimes Duval Lagrange Confort/ Prestige Groupe Lagrange 3/4 3 Paris, Strasbourg Fraser Suites Le Claridge Fraser 4L 2 Paris, La Défense Source: Jones Lang LaSalle

7.5. Future Supply

Although many projects had halted or been suspended due to the bleak economic conditions in 2009, the serviced apartment market is likely to continue its growth in the medium to long term. The degree of competitiveness within the various markets in France can differ significantly. For example, cities such as Toulouse or Grenoble are very competitive markets but others such as Lille present opportunities as existing supply is limited.

Most major serviced apartment operators are seeking to expand throughout the regional cities in France including Paris but face considerable difficulties in sourcing for development opportunities. The following provides some examples of serviced apartment operators who are expanding their portfolio in France.

The Lagrange group recently opened two serviced apartments in 2009 in Boulogne- Billancourt and Strasbourg. In addition, projects in Montpellier and Lyon are due to open in 2011. The group is looking for opportunities to expand in major regional cities in France.

Serviced Residences Market Overview Report Page 30 Prepared for DBS Trustee Ltd July 2010 H - 34

Adagio has expanded rapidly since 2007 and plans to have a network of 70 serviced apartments in Europe by 2013.

Odalys is pursuing a similar strategy. After recently opening in Nîmes, Nice and Lyon, the group plans to expand in Dijon, Colmar, Strasbourg, Toulouse and Marseille.

Mysuite Apparthotel which was renamed as Park & Suite expanded its portfolio from 14 to 44 properties in 2009. This was due to a buyback of insolvent properties. Park & Suite is aiming to open six new properties in 2010.

Appart’City, with an extensive network of serviced apartments, is in search for opportunities to further expand its inventory. The serviced apartment group has a target of developing 140 serviced apartment properties by 2015, including locations in other European cities.

Only Residhotel and Citea appear to be decelerating development with Residhotel mainly due to financial difficulties and Citea due to an extensive network of serviced apartments in many regions which has limited further expansion.

7.6. Serviced Apartment Trend

While the serviced apartment product in France has been differentiated from a traditional hotel product offering with the addition of space and facilities including a kitchen and often a living area, the gap between the two types of accommodation is now narrowing.

Serviced apartments have now focussed on enhancing their product offering with the inclusion of hotel type facilities such as spa and fitness services which can also help attract leisure clientele. This trend is growing as serviced apartments are being upgraded together with the creation of ‘premium’ brands similar to hotels. In the serviced apartment market, the highest level of standard in this sector offers a similar service level to international hotels.

In future, the legislation could be imposed to merge hotels and serviced apartments into one sector. This could also include a country wide directive to raise the standard of fire and safety regulations for serviced apartments to be in line as that for hotels.

In addition, the tax incentives that currently apply to serviced apartments could be extended to hotels.

Serviced Residences Market Overview Report Page 31 Prepared for DBS Trustee Ltd July 2010 H - 35

8.0 PARIS SERVICED RESIDENCES MARKET OVERVIEW

8.1. Paris Economic Overview

Paris is the most populated city in France. The capital city accounted for 3.5% of the total French population with approximately 2.2 million residents in 2007 (latest available statistics). Paris is the political, economic and financial gateway for France. There is a total of 51.5 million square metres of office space available in Paris, which is the largest inventory of office space in all of Europe. Unlike other major European centres, including London and Frankfurt, Paris’s diversified economic structure has helped the city buffer the impact of the financial crisis.

Approximately 8% of the headquarters of multinational corporations are located in Paris and Ile-de-France, higher than any other city in Europe and globally, it ranks second after Tokyo. There are approximately 150,000 foreign workers working in the city.

Although corporate activity was adversely affected during the global financial crisis, the strong pipeline of 1.2 million square metres of office space proposed as at January 2010 in greater Paris reflects the demand for offices and increased corporate activity. Some of the projects in the pipeline beyond 2010 include the restructuring of office towers in the 15th district of Paris, the renewal and revitalisation of the Porte des Lilas, Porte de Bagnolet and Porte de Sèvres districts, on-going renewal work at Paris Rive Gauche and, by 2015, an extension of La Défense.

Supporting the capital city, is an efficient transportation network with a combination of underground, streetcar, trains and bus services. The public transportation network in the city is extremely efficient and caters to the needs of visitors as well as Parisians.

With five train stations, Paris is well connected with all major French regional cities and the other European such as London, Brussels, Amsterdam, Cologne and Milan by high speed train.

In addition, Paris is served by two international airports, Roissy Charles de Gaulle (CDG) and Orly. In terms of passenger numbers, Roissy CDG is the second largest airport in Europe and the fifth in the world with close to 58 million passengers in 2009, while Orly ranked tenth in Europe with over 25 million passengers. The two airports connect Paris to 526 destinations in 136 countries as at end of 2009. In 2009, passenger traffic fell by approximately 4.5% for the Parisian airports.

8.2. Serviced Residences Market & Performance Review

Supply

Paris benefits from a very diverse accommodation supply. As at January 2010, the city had a total of 1,474 hotels offering 78,332 rooms. The hotel market is dominated by the Superior 3-star and above segment which accounts for approximately 63.0% of the total hotel supply. This is a result of the long term trend which has seen a progressive upgrading of the Parisian hotel supply. The percentage of rooms in the 3-star segment has steadily increased from 56.0% in 1999 to 60.0% in 2005 and 63.0% in 2010. Hotel chain penetration has also seen an increase from 41.0% in 1999 to 46.5% in 2010.

In comparison to the total hotel room inventory, the serviced apartment supply in Paris remains limited. According to the Préfecture de Paris, the city has an inventory 74 serviced apartments offering approximately 5,000 units.

Serviced Residences Market Overview Report Page 32 Prepared for DBS Trustee Ltd July 2010 H - 36

Historical Supply in Paris

50,000

40,000

30,000

No. of Rooms of No. 20,000

10,000

0 1999 2005 2010 Select services Hotels 0-star to 2-star Superior Hotels 3-star to 4-star Serviced Apartments Source: INSEE - Pôle de compétence Tourisme, Jones Lang LaSalle Hotels

The lack of available land for new developments in central Paris has confined the development of apart-hotels to the peripheral areas of Paris. With the exception of major international operators such as The Ascott Limited (Ascott), new serviced apartment operators have been unable to secure serviced apartments opportunities in central Paris and as a result have shifted to the peripherals of the city or in the outskirts. City centre locations are limited to few serviced apartment operators.

Major Serviced Apartment Properties in Paris

Property Name Operator No. of Properties Star Grading No. of units Citadines Ascott 15 3/4 -star 1,499 Adagio PV / Accor 7 3/4 -star 1,064 Home Plazza Groupe Home Plazza 2 3/4 -star 354 Mama Shelter Trigano 1 3-star 172 Citéa Nexity / PV 4 3-star 162 Suite-Home Paris Pantin Groupe Suite Home 1 3-star 139 Fraser Suites Le Claridge Fraser 1 4-star 110 Les hotels de Paris Groupe les hôtels de Paris 2 3-star 94 Residhome Apparthotel Réside Etudes 1 4-star 90 Séjours affaires Aparthotel Réside Etudes 1 2-star 85 AppartCity Groupe Menguy 1 2-star 84 Park and Suites Park and Suites 1 3-star 70 Resid’Hôtel ResidHotel – Cap Résidences 1 4-star 16 Total 3,939

Source: Jones Lang LaSalle Hotels

8.3. Future Supply

Majority of the recently opened serviced apartments in Paris are either developed by national, regional or international serviced apartment groups or independent hoteliers. A number of these operators are developing or operating serviced apartments in Paris for the first time. This excludes the Adagio branded serviced apartments, which is a joint venture between Accor and Pierre et Vacances and has opened seven serviced apartments with a total of 1,064 rooms in the past three years. One of the more recent serviced apartment openings in 2008 is the independently managed Mama Shelter which opened in the 20th district and is positioned as a trendy serviced apartment in an off-centre location.

Serviced Residences Market Overview Report Page 33 Prepared for DBS Trustee Ltd July 2010 H - 37

8.4. Demand

With no legal requirements to the length of stay, serviced apartments tend to also compete with hotels for daily guests. Similar to hotels, demand for serviced apartments is also based on selection factors such as brand, star-grading, location and price.

Paris is among the most visited cities in the world. The capital city of France has many popular tourist attractions and amongst the most visited sites are the Eiffel Tower, Notre Dame Cathedral, the Arc de Triomphe and the Musée du Louvre. Many buildings and the river banks located in Paris are classified on the UNESCO World Heritage List. The city also benefits from a diversified tourism mix, attracting both corporate and leisure business. In 2008, the corporate segment represented approximately 45% of hotel bed nights in Paris and has remained relatively stable over the years. From 2003 to 2007, visitor arrivals were on the upward trend and peaked at approximately 15.5 million arrivals in 2007.

During 2008 and 2009, the global financial crisis impacted visitation to the French capital resulting in a decline of 6.5% year-on-year to 14.4 million visitors in 2009. The decline in number of bed (-3.4% between 2008 and 2009) nights was marginal due to a slight increase in length of stay (+0.7%). However, with more than 1.8 million arrivals (+13.9% compared with Q1 2009), the first quarter of 2010 displays encouraging signs of recovery.

In terms of visitor arrivals by geographic source markets, the United Kingdom (UK) surpassed the United States (US) and was the top source market for Paris. Visitation from the US dropped to second position in 2008 as impact from the onset of the credit problems curtailed outbound travel from the country. In 2009, there was a marginal rebound (3.5%) in US visitation which propelled it as back to top position while the visitation from the UK declined steeply. With most countries experiencing a downturn in their economies during 2009, all source markets to Paris declined with the exception of the Netherlands. However, the domestic market proved to be quite resilient and maintained its market share of 35% of total bed nights.

Paris attracts a significant amount of MICE demand. According to the Paris Chamber of Commerce, Paris offers the largest provision of exhibition space in Europe of approximately 616,000 square metres. Approximately 80% of all international trade fairs in France are held in Paris and this amounts to an estimated 400 trade fairs and up to 95,000 exhibitors.

According to the International Congress and Convention Association (ICCA), the city is among the top five global cities in terms of events organised along with Vienna, Berlin, Singapore and Brussels. The ICCA recorded a total of 139 international events (with more than 50 participants for each event) in the capital in 2008, as compared to 115 in 2007. The Office du Tourisme et des Congrès de Paris, which uses a broader definition of ‘congress’, recorded a total of 932 events in 2009 in comparison to 902 events in 2008 and 904 in 2007.

8.5. Performance Review

Occupancy and Average Daily Rates (ADR) has been steadily increasing from 2005 to 2007 and peaked at occupancy of 79.1% and ADR of 190 Euros in 2007 for the 4-star hotel segment, in correlation with upward visitor arrival trends. Although the global economic climate deteriorated towards the end of 2008, occupancy and ADR levels in Paris remained relatively stable, with a marginal year-on-year decline of 1.9 percentage points in occupancy and 1.1% in ADR in 2008 for the 4-star segment.

In 2009, although the economic climate remained challenging, occupancy remained above 70% levels and recorded 73% while ADR decreased by 8.6% to 172 Euros for the 4-star segment. The 3-star hotel segment showed a similar trend to that of the 4-star hotel market.

Serviced Residences Market Overview Report Page 34 Prepared for DBS Trustee Ltd July 2010 H - 38

As at May 2010, it seems that both 3-star and 4-star category have entered into a phase of recovery with a RevPAR growth above 5% for both categories compared with the same period in 2009.

Our research indicates that the trading performance of the serviced apartment market was similarly affected in line with hotel trading performances.

Paris 3-star Hotel Trading Performance

120 90,0%

100 80,0% ) € 80 70,0% 60 60,0% 40 AD/RevPar ( AD/RevPar 50,0% (%) Occupancy 20 0 40,0% 2005 2006 2007 2008 2009 May 2009 May 2010 YTD YTD Source: Deloitte ADR RevPar Occupancy

Paris 4-star Hotel Trading Performance

200 90,0% 180 160 80,0% ) ) € 140 120 70,0% 100 80 60,0% 60 Occupancy (%) Occupancy ADR/RevPar ( ADR/RevPar 40 50,0% 20 0 40,0% 2005 2006 2007 2008 2009 May 2009 May 2010 YTD YTD Source: Deloitte ADR RevPar Occupancy

8.6. Market Outlook

The rebound in US visitor arrivals in 2009 was a positive sign for the Parisian tourism market as it has traditionally been a top source market. We expect other source markets to remain in an upward trend in 2010 as some larger economies start to show signs of some recovery. In addition, improvements in the overall economic environment should also boost corporate demand. MICE demand which had contracted in 2009 has also shown some positive signs of a pick up in the early months of 2010. Paris could still suffer from companies cutting costs and reducing their travel expenses and MICE. With little risk of an oversupply, both the serviced apartment and hotel supply growth remains limited due to the lack of available land and building in Paris and the high real estate price.

While hoteliers are likely to be conservative in increasing ADR, occupancy has started to record growth since the beginning of 2010. Overall, occupancy is expected to experience a modest increase in 2010 with ADR only slightly growing. We expect this recovery trend to maintain

Serviced Residences Market Overview Report Page 35 Prepared for DBS Trustee Ltd July 2010 H - 39

over time albeit at a slow pace for 2011. Growth in occupancy is also expected to continue through in 2011 as market occupancy recovers followed by ADR growth slightly lagging. In the medium term, the fundamentals for the Paris tourism market is good and occupancy should resume to the 80% levels.

In the long term, we expect Paris’ well-known tourist attractions and MICE infrastructure to continue attracting both leisure and corporate clientele. The limited development pipeline of serviced apartments will be a major factor in allowing trading performances to strengthen.

Serviced Residences Market Overview Report Page 36 Prepared for DBS Trustee Ltd July 2010 H - 40

9.0 MARSEILLE SERVICED RESIDENCES MARKET OVERVIEW

9.1. Marseille Economic Overview

With more than 800,000 residents, Marseille is the second largest city in France, behind Paris. Its urban region ranks third after Paris and Lyon and has a population of more than 1.4 million residents. Over the last eight years, the population has increased by 7%.

Marseille is also the administrative capital of the department Bouches-du-Rhône, and the most important city on the French Riviera. Its location on the Mediterranean coast has provided the city with a strategic position with good accessibility to an extensive transportation network which includes the following access:

By train: National and regional connections with the high speed train TGV (three hours from Paris). There are also direct TGV lines to Brussels and Geneva.

By air: Marseille Provence is the fourth largest international airport in France. It handled approximately 7.3 million passengers in 2009, an increase of 4.7% to the 2008 figures. The recent opening of the new terminal Mp2, dedicated to low cost airlines, has increased total air traffic by 25% since 2008.

By road: Marseille is at the crossroad of the A7 highway connecting the city to the North (Lyon, Paris, Lille) and the A1 and A6 to the East and West of the Mediterranean coast.

Since 2000, the city of Marseille has grown significantly. Principal industries supporting Marseille and its immediate region include petroleum refining and shipbuilding as well as the manufacture of chemicals, soap, glass, sugar, building materials, plastics, textiles, olive oil, and processed foods.

Today, the economy of Marseille is dominated by its Port activity which has anchored it as a key commercial container and sea transport hub within the Mediterranean. In excess of a 100 million tons of freight pass through the Grand Port Maritime de Marseille annually, 60% of which is petroleum, making Marseille the leading commercial port in France and the Mediterranean and number three in Europe.

After a small decline in 2008, port activity decreased by 13% in 2009, with 83 million tons of cargo compared with 96 million tons of cargo, a year earlier.

Sea travellers through the port in 2008 reached a record high volume of two million passengers. The exponential growth in demand for cruises since 2007 has also been a key factor in the increase in passenger traffic through the port. Traffic is generated from cruises and transit passengers to Corsica and North African countries using Marseille as a gateway. In 2009, close to 630,000 passengers passed through the port of Marseille, a growth of 2% compared to 2008. This figure is expected to reach one million by 2011 with the opening of the port to new cruise operators.

Located in Marseille, is Euromed, one of the largest urban redevelopment projects in France. The project which commenced in 1996 comprises 1.2 million square metres of new development with 600,000 square metres of office space, 400,000 square metres of residential housing, 200,000 square metres of retail / public equipment, 6,000 renovated residential units, the creation of 20 hectares of public spaces (twice the current size) and restructuring of transit infrastructures. The programme targets an additional 10,000 residents and has created 20,000 new jobs during its 15 year development (1996-2010).

Serviced Residences Market Overview Report Page 37 Prepared for DBS Trustee Ltd July 2010 H - 41

9.2. Serviced Residences Market & Performance Review

Existing Supply

The number of hotel rooms in the city increased by 25% between 1996 and 2009, rising from 4,500 to 5,629. Historically, Marseille’s hotel supply has been concentrated in the budget and economy segment (0-2-star hotels). In terms of number of rooms, these categories represent 52% of total room supply. There are only nine properties within the 4-star segment (excluding hotels at Marseille Airport) representing 1,046 rooms i.e. 24 % of the total room supply.

The main hotel chains represented in Marseille are Accor, with more than 15 properties ranging from 2 to 4-star hotels, group Erghot with its New hotel brand (3 and 4-star properties), Radisson SAS (opened March 2007), Concorde (opened mid 2007) and Intercontinental (Holiday Inn Prado and Holiday Inn Express opened March 2010).

Over the years, the profile of the Marseille accommodation market has transformed with an increasing presence of serviced apartment accommodation. Since 2005, the number of serviced apartments in the city increased by 30%. Today, serviced apartment accounts for close to 28% of the total accommodation available, with 1,900 apartments units in Marseille. The recent opening of two new properties in 2009 and 2010 under the brands Adagio and Citéa support the trend towards serviced apartment development. Historical Supply in Marseille 3,000

2,000

No. of Rooms of No. 1,000

0 1999 2005 2010 Select services Hotels 0-star to 2-star Superior Hotels 3- star to 4-star Serviced Apartments Source: INSEE - Pôle de compétence Tourisme

The major serviced apartment operators in Marseille are Citadines, Adagio and Citéa. Collectively, they account for 80% of the total serviced apartment supply. Citéa is the leading operator in the city with 315 apartments and represents more than 30% of the total supply in Marseille.

Major Serviced Apartment Properties in Marseille Properties Name Location Star Grading No. of Units Adagio Marseille Republique 30 rue Jean Trinquet 3-star 142 Citéa Marseille Saint-Charles 23 Rue Honnorat 2-star 126 Citéa Marseille Prado Périer 161, avenue du Prado 2-star 105 Citadines Marseille Centre 4, place Pierre Bertas 3-star 101 Résid'hôtel le Grand Prado 7, Square Des Frères Ambrogiani 2-star 100 Citadines Castellane 60, rue du Rouet 3-star 97 Adagio Marseille Prado 46 rue des Mousses 3-star 94 Citéa Marseille Plan de Cuques Allée Bougainville 2-star 84 Citadines Prado-Chanot 9-11, boulevard de Louvain 3-star 77 Résidence Services Calypso 64 Avenue d'Haïfa unclassified 61 Suite Affaire Vieux-Port Marseille 4, Rue Coutellerie unclassified 47 Total 1,034 Source : CDT des Bouches-du-Rhône, Jones Lang LaSalle Hotels

Serviced Residences Market Overview Report Page 38 Prepared for DBS Trustee Ltd July 2010 H - 42

9.3. Future Supply

The 2013 European Capital of Culture designation for the city, along with Euromediterranée, represent an incentive for future hotel developments in Marseille. The city's goal as outlined in a 2012 new hotel development scheme is to increase the overall supply by 6,000 rooms, with an emphasis on a doubling of the four-star hotels inventory. The goal will enable Marseille to host large events requiring extensive accommodation capacity such as the congress of Pneumonia in 2010, the World Water Forum in 2012 and most notably the European Year of Culture in 2013.

The recent openings and the development of 4 and 5-star hotels in the market is an indication to the repositioning of the city’s accommodation inventory to the upscale segment (50% of proposed room inventory belong to this segment).

9.4. Demand

Hotel market performances in Marseille have been cyclical and linked to the economy. Similar to most cities in France, occupancy and RevPAR have decreased during the global economic crisis. Demand also shows a seasonal pattern, with peak occupancy during the summer months. Approximately 25% of annual overnights stays is captured in the two months of July and August.

Marseille is also listed on the UNESCO World Heritage List. The city offers a wealth of art, history and rich culture complemented by its museums and galleries and historical places of interest. The 2007 Rugby World Cup in Marseille boosted the prominence of the city as a tourist destination and has helped attract an increase of all segments of visitors including the lucrative MICE segments.

With over four million tourists recorded to Marseille in 2009, this represents more than 20 million room nights and has been mainly generated by the domestic market (80% of the total). International demand is driven by European tourists coming from Italy, Belgium, the UK and Germany.

Although leisure demand remains more dominant than the business segment, the distribution between the two segments is becoming equal over the last decade. Latest available data indicated in 2007, leisure accounted for 53% of total visitors with the remaining 47% generated by the business segment.

The MICE market has also developed along with the economic development of Marseille. Between 1996 and 2009, the percentage of meetings has increased by 93%, with more than 390,000 visitors. In 2009, the Mediterranean city hosted 346 professional events (mainly congresses and seminars), a 6.5% increase compared to 2008. This distribution of clientele mix has allowed hotels and serviced apartments to soften the impact of seasonality during the year, as well as on a weekly basis.

The inauguration of the TGV high speed train has reduced travelling time from Paris to Marseille by three hours and the growth of the cruise industry are factors that have contributed to position Marseille as a short stay destination for the domestic market. The designation of the Marseille as European Capital of Culture 2013 will also provide the city with the international exposure required to establish itself as a leading tourist destination.

9.5. Performance Review

There is no publicly available data on the serviced apartment sector in Marseille. However, similar to the other provincial cities in France, the serviced apartments market operates in a

Serviced Residences Market Overview Report Page 39 Prepared for DBS Trustee Ltd July 2010 H - 43

similar environment as hotels. The performance of the Marseille hotel market is a good indication to the performance of the serviced apartment market.

After three years of continued growth, the economic downturn in 2009 had a significant negative impact on 3 and 4-star hotels in Marseille which experienced a decline of -9% and a corresponding RevPAR decrease of -13% as compared with 2008. However the impact of the crisis has affected hotels by varying degrees with the decrease in ADR most significant at the upper end hotels. ADR among 4-star segment dipped by 10% in contrast to the 3-star segment which experienced a decline of 2% s but 6 points decrease in occupancy. This decline continued into 2010, with a RevPAR fall of 5.6% in YTD May 2010 for the 4-star hotels compared to YTD May 2009, and a decrease of 3.4% for the 3-star hotels.

Overall, 4-star hotels occupancy in Marseille has been below 60% and has followed a downward trend since 2005, reflecting the impact of an increase of supply in this category. In comparison, the 3-star hotel occupancy has remained static in the high 60s on average.

Marseille 3-star Hotel Trading Performance

120 80% 70% 100 60% 80 50%

60 40% 30% 40 ADR/RevPar(€) 20% Occupancy(%) 20 10% 0 0% 2005 2006 2007 2008 2009 May 2009 May 2010 YTD YTD Source: Deloitte ADR RevPar Occupancy

Marseille 4-star Hotel Trading Performance

180 70% 160 60% 140 ) 50% € 120 100 40%

80 30%

60 Occupancy (%) Occupancy ( ADR/RevPar 20% 40 20 10% 0 0% 2005 2006 2007 2008 2009 May 2009 May 2010 YTD YTD Source: Deloitte ADR RevPar Occupancy

9.6. Outlook for the market

The first five months of 2010 have remained difficult for the hotel market in Marseille. As a result of the global economic crisis, companies have significantly reduced their travel to Marseille including company events. However, Marseille is an attractive city and the designation

Serviced Residences Market Overview Report Page 40 Prepared for DBS Trustee Ltd July 2010 H - 44

of the City as European Capital of Culture 2013 is expected to attract greater international recognition. This recognition should bolster tourism in Marseille in the long term. Tourism arrivals are expected to increase significantly in 2013.

In addition, the progressive development of Euromed, the economic cluster currently in construction close to the harbour will drive more business clientele to the City and contribute to its international influence.

Marseille hotel market yet to show any signs of a recovery and hotel performances are still down for the first months of 2010. However, occupancy is expected to increase in the second half of 2010, with an expected six months time lag to any recovery in Paris. Hoteliers are likely to maintain low rates in order to boost occupancy and the rate growth is not expected before mid 2011. By 2012, Marseille market should recover to some degree with occupancy remaining stable at around 60% for the 4-star segment and 70% for the 3-star segment.

Serviced Residences Market Overview Report Page 41 Prepared for DBS Trustee Ltd July 2010 H - 45

10.0 LYON SERVICED RESIDENCES MARKET OVERVIEW

10.1. Lyon Economic Overview

The city of Lyon has a population of 450,000 with an additional 1.2 million people located within the Greater Lyon area. Greater Lyon encompasses 57 cities which are directly under the economic authority of Lyon.

Lyon Airport is the third busiest airport in France and together with the TGV high speed train system, it is well connected to key business destinations in Europe including Paris, London, Milan and Barcelona. The city also offers an extensive transportation network which includes subway, tram, bus and Regional Express Trains. By 2011, a new non-stop express tram line will connect the airport to downtown Lyon in 25 minutes.

Historically Lyon has built its success on a combination of trade and industry. These fundamental strengths remain unchanged and have underpinned Lyon’s position as France’s second largest economic hub. There are three major business districts in the city, each of them presenting an ongoing development program:

Lyon Part Dieu Business district: 1.6 million square metres of office space with one of the largest city-centre shopping centres in Europe (64,400 square metres of retail space). The area is undergoing a substantial development programme to add new space for service activities, residential property and commercial premises. Carré de Soie: the 500 hectare site, located in Lyon’s eastern suburbs, will soon undergo both commercial and residential development and is forecast to ultimately accommodate 30,000 residents. Lyon Confluence: located south of the historic peninsula, the 150 hectare site will soon welcome additional housing, shops, cultural and entertainment centres and in doing so effectively double the ‘downtown’ area of Lyon.

In 2004, competitiveness clusters were launched in an effort to encourage and support initiatives from the academic and economic sectors. Today, Greater Lyon alone has five competitive clusters:

Two international competitiveness clusters: Lyonbiopôle (life science: infectious diseases) and Axelera (chemistry and environment) Three national focused: Lyon Urban Truck & Bus, Imaginove (digital entertainment) and Techtera (technical and functional textiles)

Although Lyon was designated in 1998 as a UNESCO World Heritage Site, this status has not resulted in any significant advantage as a tourist destination. Despite this, Lyon offers many tourist attractions including museums, an attractive architectural heritage and numerous festivals through the year.

While the city has struggled to gain recognition as a tourist destination, Lyon has gained considerable status as a business destination, as a result of its excellent MICE infrastructure, offering the second largest volume of exhibition space in France. There are three main MICE facilities in Lyon are the Cité International, the Gerland District and Eurexpo.

The main challenge facing Lyon in the future lies in its ability to enhance its international exposure.

Serviced Residences Market Overview Report Page 42 Prepared for DBS Trustee Ltd July 2010 H - 46

10.2. Serviced Residences Market & Performance Review

Existing Supply

In 2010, serviced residence units account for 27% of the total guest accommodation (hotel rooms and apartments) in Lyon.

Historical Supply in Lyon 4,000

3,000

2,000

1,000 No. of Rooms/apartments of No.

0 2001 2005 2010 Select services Hotels 0-star to 2-star Superior Hotels 3-star to 4-star Serviced Apartments Source: INSEE - Pôle de compétence Tourisme

The current hotel supply in Lyon is the consequence of a hotel development plan designed by the local authorities in 2000 to develop and improve tourist accommodation. The objective was to position the city as a tourist destination, match business clients’ expectations in terms of quality and quantity and position the city’s hotel offering competitively against other European cities. Although room supply has decreased by 0.4% since 2001, this has been contrasted by an upward shift in market positioning on the overall inventory: the supply of select services (0 to 2-star) hotel rooms have decreased by -13.2% whereas superior hotels rooms (3 and 4-star) have increased by 13.7%. Nonetheless, the overall supply remains concentrated in the 2 and 3-star hotel sector which accounts for 67% of total room capacity.

The serviced apartments sector has more than doubled in the last four years. In 2006, there were only nine serviced apartments in Lyon, whereas today there are more than 20 developments.

The serviced apartment market in Lyon is dominated by five groups accounting for 73% of the supply. The majority of the properties (more than 90%) are graded 2 and 3-star. The average property size is 92 units, with the smallest at 30 units and the largest at 142 units.

Serviced Residences Market Overview Report Page 43 Prepared for DBS Trustee Ltd July 2010 H - 47

Major Serviced Apartment Properties in Lyon No. of Properties name Location Star Grading Units Appart'City Lyon La Part Dieu 6 avenue Lacassagne 2-star 142 Park & Suites Part-Dieu 111 boulevard Marius Vivier Merle 2-star 140 Résidence Temporim Lyon Part Dieu 30, avenue Georges Pompidou 2-star 134 Résidence Odalys Bioparc 60, Avenue Rockfeller 3-star 132 Park & Suites Confort Lyon Vaise 51 Bis Rue de Saint Cyr 3-star 127 Park & Suites Elégance Lyon Gerland 175, avenue Jean Jaurès 3-star 123 Appart'City Lyon III 40 rue de l'Abondance 2-star 118 RésidHôtel Lyon Lamartine 11 avenue victor hugo 3-star 117 Citéa Lyon 14, rue Jacqueline Auriol 2 star 115 Appart'City Lyon Villeurbanne 314 cours Emile Zola 3 star 104 Résidence Temporim Cité Internationale 35, quai Charles de Gaulle 2-star 104 Citéa Lyon Lissieu – Dardilly 8, Allée des Ecureuils unclassified 100 Citadines Apart'hotel Lyon Part-Dieu 91-95 Rue Moncey 3 star 97 Sejours & Affaires Park Lane 43 rue du sgt M Berthet 2-star 88 Sejours & Affaires Park Avenue 2 rue Marie Madeleine Fourcade 2-star 84 Sejours & Affaires Saint Nicolas 90 Bd Vivier Merle 2-star 80 Résidence Les Carrés Pégase 31, rue Chevreul 1 star 78 Citéa Lyon Marcy Etoile 80 avenue Marcel Mérieux unclassified 78 RésidHôtel Lyon Part Dieu 79 Boulevard Marius Vivier-Merle 3 star 76 Sejours & Affaires Saxe-Gambetta 34, Grande Rue de la Guillotière 2-star 60 Park & Suites Elégance Lyon Valmy 4, rue sergent Michel Berthet 3 star 54 Résidence les Palatines 22 rue Fraternelle 3 star 48

Residéal Lyon Bellecour 6 Rue Tony Tollet 3 star 38 Résidence Antaeus Parc Montchat 8 Cours du Dr Long 2-star 37 Sejours & Affaires Pavillon Mazenod 132, rue Mazenod 2-star 30 Total 2,304

All major urban serviced apartment groups have established a presence in Lyon with the notable exception of the Adagio brand.

Major Serviced Apartment Groups in Lyon Number of Properties Number of Apartments Units Park & Suites 4 444 Appart'City 3 364 Réside Etudes 5 342 Citéa 3 293 Temporim 2 238 Total 17 1,681 Source: Jones Lang LaSalle Hotels

10.3. Future Supply

The 2000 hotel development plan helped to strengthen the city’s hotel facilities by increasing as well as enhancing the overall capacity mostly in the business sector and independent hotels. A new scheme to develop tourist accommodation by 2015 has target to continue this objective.

Our research on the proposed accommodation pipeline in Lyon indicate an inventory of approximately 370 hotel rooms under construction and due to open this year. All three

Serviced Residences Market Overview Report Page 44 Prepared for DBS Trustee Ltd July 2010 H - 48

properties will be managed by Accor. A further 936 keys have been proposed over the medium to long term. It should be noted that it is likely that some of these projects may not materialise due to various reasons including financing difficulties.

10.4. Demand

Domestic tourism accounted for between 75-80% of inbound travellers, and compensated for the decrease of international visitors during 2009.

With only 35% capture of leisure tourists, Lyon is predominantly a business destination. Lyon has also significantly strengthened its position as a host city for international conferences due to a strong and supportive MICE infrastructure. Three major professional events are organised on a recurrent basis in Lyon: SIRHA (141,000 visitors), Pollutec (73,000 visitors) and Solutrans (28,000 visitors).

10.5. Performance Review

There is limited historic performance data available for the serviced apartment sector in Lyon. The predominance of the business segment is reflected in the annual seasonality in occupancy levels. June, September and October are traditionally the strongest months as they are typically the periods favoured by companies to organise professional events. Occupancies for the remaining of the year remain at a relatively strong level of above 60% with the exception of July and August, the tradition vacation period in Europe.

Mid and Up-scale Serviced Apartment Trading Performance 80 100,0%

70 90,0% 60 80,0%

50 70,0% 40 60,0% Occupancy (%) 30 ADR/RevPAR (€) 50,0% 20

10 40,0%

0 30,0% Jan Feb March Apr May Jun Jul Aug Sept Oct Nov Dec Source: Deloitte ADR 08 ADR 09 ADR 10 OR 08 OR 09 OR 10

With information unavailable on the serviced apartment performances prior to 2008, the hotel market in Lyon offers some comparable information on long term trends. Over the 2006-2009 periods, the hotel trading performance mirrored the economic cycle. However, the impact of the crisis appears to be softened by Lyon’s limited international exposure and the heavy reliance on the domestic market. The performance of 4-star hotels is relatively low for this segment, supporting a fact that the Lyon market caters mainly to mid-scale demand rather than up-scale demand.

Serviced Residences Market Overview Report Page 45 Prepared for DBS Trustee Ltd July 2010 H - 49

Although, RevPAR in both 3 and 4-star hotels categories recorded a decrease in 2009 compared with 2008, the 3-star segment has shown a stronger resilience with a decrease of 2% versus -7% for the 4-star hotel market. While both categories suffered a decrease in occupancy, the 3-star hotels achieved a 0.5% increase in ADR during 2009 while the 4-star hotels recorded a 4% decrease. Results for the first five months are encouraging with a small increase of the occupancy rate for the 3-star and 4-star categories, though ADR have decreased further in similar proportion (-2.6%).

Lyon 3-star Hotel Trading Performance

120 80% 100 70% 80 60 60% 40 50%

ADR/RevPar(€) 20 Occupancy(%) 0 40% 2006 2007 2008 2009 May 2009 May 2010 YTD YTD Source: Deloitte ADR RevPar Occupancy

Lyon 4-star Hotel Trading Performance

140 70% 120 60% 100 50% 80 40% 60 30% 40 20% ADR/RevPar(€) 20 10% Occupancy (%) 0 0% 2006 2007 2008 2009 May 2009 May 2010 YTD YTD Source: Deloitte ADR RevPar Occupancy

10.6. Outlook for the market

The well diversified economic activity of Lyon should allow the destination to progressively return to pre crisis levels by the end of 2011.

Hotel occupancy is expected to recover before ADR growth is registered. However new supply may be driven by the continuous development of La Part Dieu, Gerland and Confluence which in turn may cause pressure on hotel demand, particularly in the up scale segment. Hotel performances in Lyon will depend on the ability of the destination to gain more international exposure, secure the business clientele and develop the leisure demand.

Serviced Residences Market Overview Report Page 46 Prepared for DBS Trustee Ltd July 2010 H - 50

11.0 CANNES SERVICED RESIDENCES MARKET OVERVIEW

11.1. Cannes Overview

Cannes has a wide international profile and is well-known for hosting the annual International Film Festival. The beach resort town is renowned for being one of the most prestigious luxury leisure destinations in France and Europe, attracting both domestic and foreign visitors.

Over the years, Cannes has also established its position as the nautical playground for the international jet set community with many luxury yachts berthing in its harbour. In addition, the casinos and world class marinas have drawn many international as well as regional high spending leisure tourists to the city.

Cannes is one of the major MICE destinations in France. The convention centre, Palais des Festivals et des Congrès, hosts approximately 50 events annually including conventions, festivals, and other international events. The convention centre is estimated to generate over €300 million of revenue for the local economy and is one of the main tourism drivers. However, since 2000, several large exhibitions and conventions which were previously held in Cannes have moved to other cities such as Barcelona and Prague while others have shifted to countries such as Morocco which offers a more economical alternative. In addition, the construction of a new congress centre in Antibes, a medium size city located nearby and a planned second congress centre in Nice could potentially adversely impact the future demand of MICE in Cannes.

Another significant contributor to the economy in Cannes is the high-technology industry which focuses on satellites and telecommunications, observation and military satellite systems and employs a workforce of 1,850 employees. Additionally, Cannes benefits from being located in proximity of the Sophia Antipolis Science and Technology cluster, considered to be ‘Silicon Valley’ of France.

11.2. Serviced Residences Market & Performance Review

Existing supply

A large proportion of serviced apartments in the French Riveria are located in the city of Cannes. Taking into account Mandelieu, the city at the border of Cannes, this region comprises 45% of the total regional supply of serviced apartments.

Following a period of oversupply in the early 1990’s in the French Riviera, there was a downward trend in the supply of serviced apartments. From 2000 to 2001, the inventory of serviced apartments rationalised and developed at a more realistic pace to match market demands.

The supply of hotels has grown at a CAAG rate of 1.2% due mainly to the growth of the upscale segment.

Serviced Residences Market Overview Report Page 47 Prepared for DBS Trustee Ltd July 2010 H - 51

Historical Supply in Cannes 5,000

4,000

3,000

No. of Rooms 2,000

1,000

0 2003 2005 2010 Select services Hotels 0-star to 2-star Superior Hotels 3-star to 4-star Serviced Apartments

Source: CRT Côte d'Azur, Jones Lang Lasalle Hotels

The market is dominated by three serviced apartment operators - Pierre & Vacances, Residhôtel and Vacances Bleues. Together, they account for 74% of the total apartment supply in the French Riveria.

The Pierre & Vacances Group manages five properties under the Pierre & Vacances and Maeva brands and is the market leader in Cannes with more than 1,500 apartments units representing 63% of the total serviced apartment supply.

Examples of Major Serviced Apartment Properties in Cannes No. Serviced Apartment Location Star Grading of Units P&V Résidence Cannes Beach 11 Avenue Pierre Semard 3-star 690 P&V Résidence Cannes Villa Francia 33, avenue Wester Wemyss 3-star 434 Residence Maeva Cannes Verrerie 6, rue de la Verrerie 3-star 351 Home Business Cannes Croisette 12, rue Latour Maubourg 4-star 110 Residence Résideal Cannes 11 Rue Bertrand Lépine 4-star 97 Residence Les Agapanthes 108, avenue Maurice Chevalier 2-star 88 Residence Maeva Les Félibriges 91/93 rue Georges Clémenceau 2-star 84 Résidence Les Genévriers Vacances Bleues 11 rue Beaulieu 2-star 72 Résidhôtel Cannes Festival 107, Avenue Francis Tonner 2-star 65 Citadines Cannes Carnot 1 rue Le Poussin 3-star 58 Hotel Residence Excelsuites 93 boulevard Carnot 4-star 43 Residence Masséna 1 avenue de Lyon 3-star 41 Suite Affaire Cannes 10 Rue de la Rampe 2-star 34 Total 2,167 Source: Jones Lang LaSalle Hotels Future supply

As at April 2010, we understand that there are no upcoming serviced apartments to the market.

Serviced Residences Market Overview Report Page 48 Prepared for DBS Trustee Ltd July 2010 H - 52

Demand

Cannes is highly dependent on international visitors for both leisure and MICE segments. The MICE segment represents approximately 26% of total annual room nights and 35% of the annual accommodation expenditure generated.

Since 2000, the proportion of international tourists has been on the decline due to a series of factors including the economic downturn and relocation of several large MICE events to other countries. Improvements are being made to the city’s main convention centre – the Palais des Festivals et des Congrès to remain competitive with MICE infrastructure in other countries. The refurbishment includes increasing the seating capacity of one auditorium from 2,600 to 2,950 seats, the addition of 8,000 square metres of exhibition space and a 500-seat auditorium. Construction is expected to commence in 2011.

In comparison, domestic visitation has been relatively stable but insufficient to buffer the declining number of international visitors.

In Cannes, although serviced residences typically cater to longer stays, operators have adapted product offerings to meet domestic demand and seasonality of visitor arrivals. During the peak season, the serviced apartments mainly target leisure segment whereas during low and shoulder seasons, there is a larger proportion of corporate and MICE segment.

Peak season in Cannes is experienced between April and September and low season occurs from October to March. This trend is reflective of the market’s higher proportion of leisure visitors to corporate visitors who generally prefer visiting in spring and summer.

Performance Review

Over the past ten years, occupancy of serviced apartments in Cannes has fluctuated between 58% and 70%.

Cannes Serviced Residences Occupancy Rates

100%

90%

80% 70% 60%

50%

40%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Deloitte

After three years of consistent growth in Cannes’s hotel trading performance, a significant year- on-year decline was experienced in 2009. Both 3 and 4-star hotels recorded a 11% decrease in RevPAR driven by a combination of occupancy and ADR declines. The soft economic conditions have led to a decline in visitation and consequently occupancies decrease at hotels.

Serviced Residences Market Overview Report Page 49 Prepared for DBS Trustee Ltd July 2010 H - 53

This decline continued into 2010, with a RevPAR fall of 13.6% in YTD May 2010 for the 4-star hotels compared to YTD May 2009 and a decrease of 6% for the 3-star hotels.

Cannes is generally known as an expensive holiday destination and during periods of economic downturn, visitors would often choose more affordable holiday destinations.

Cannes 3-star Hotel Trading Performance

120 70%

100 60%

) 50% € 80 40% 60 30% 40 Occupancy (%) Occupancy ADR/RevPar ( ADR/RevPar 20%

20 10%

0 0% 2005 2006 2007 2008 2009 May 2009 May 2010 YTD YTD Source: Deloitte ADR RevPar Occupancy

Cannes 4-star Hotel Trading Performance 180 70% 160 60% 140 )

€ 50% 120

100 40% 80 30% 60 Occupancy (%) Occupancy

ADR/RevPar ( ADR/RevPar 20% 40 10% 20 0 0% 2005 2006 2007 2008 2009 May 2009 May 2010 YTD YTD Source: Deloitte ADR RevPar Occupancy

Market Outlook

The economic downturn of 2008/2009 had a negative impact on the Cannes hotel market which had traditionally been highly dependent on the MICE demand. In addition, the city is increasingly facing intense competition in the MICE sector from other cheaper destination.

2009 and the Q1 2010 period have been an immense struggle for the hotel market in Cannes. With companies significantly reducing their travelling expenditure, hotel demand has tailed off. However the Cannes Tourist Board has been proactive in promoting the city to leisure visitors so as to decrease the city’s dependence on the corporate and MICE market.

Cannes has also suffered considerably from its positioning as a luxury destination. As demand in Cannes is strongly correlated to the recovery in global economies, hotel performance is only expected to pick up when the recovery occurs and this is anticipated to be a slow and prolonged process. As Cannes is an established tourist destination, the development of new supply in the city is expected to be limited in the future.

Serviced Residences Market Overview Report Page 50 Prepared for DBS Trustee Ltd July 2010 H - 54

12.0 MONTPELLIER SERVICED RESIDENCES MARKET OVERVIEW

12.1. Montpellier Economic Overview

Montpellier is the eighth largest city in France in terms of number of residents. Characterised by strong population growth, the wider Montpellier which comprises a total of 31 cities recorded approximately 400,000 residents in a 2006 census. According to forecasts by INSEE, the total number of residents could reach 600,000 by 2015.

Montpellier is easily accessible from Paris via high speed train TGV. The train journey takes approximately three hours. The current TGV train expansion project to connect Barcelona and Montpellier is likely to further enhance the city’s economic development. When completed, Montpellier will be able to strengthen its integration into the area of the Mediterranean Arc which runs from Milan to Valencia, encompassing cities such as Marseille, Montpellier and Barcelona.

The airport at Montpellier is a short 10 minutes drive away from the city centre. The facility which receives an estimated 1.2 million passengers annually is well connected to major European cities and key destinations in Northern Africa. Located at the crossroads of two major highways, Montpellier is well-connected to Italy, Spain, Toulouse, Marseille and Lyon by road.

The main economic sectors in the city are agronomics, healthcare, biotechnology and information technologies. Majority of the companies are small and medium size players with a regional or local reach. Other than the existence of international companies such as Dell and IBM, Montpellier still lacks the presence of major well-known firms to enhance its international profile.

With over 250 research centres and a base of around 4,000 researchers, Montpellier is one of the largest research hubs in France. Five competitive clusters have been established to develop and encourage public and private sector collaborations and joint venture projects.

Similar to other French cities, Montpellier experienced difficult economic conditions in 2009. A rescue and revitalising spending plan was implemented to reduce the short term effects of the crisis. Collectively, the Région Languedoc-Roussillon and Metropolitan community of Montpellier have plans to invest approximately 1.3 billion Euros in 2009 and 2010.

To facilitate economic growth, the local government intends to reclaim land to further expand the city area which will allow for more development opportunities for commercial and residential areas. In doing so, the mayor and the region planners hope to create new clusters of economic activity.

The city of Montpellier attracts both corporate and leisure visitors. Corporate demand is closely linked to business activities in the city and the surrounding economic clusters. Montpellier is also an attractive MICE destination in France, with four existing MICE infrastructure, le Corum, le Parc des Expositions, le Zénith Sud and l'Arena 2010. In 2010, there will be an addition of a 14,000 square metre auditorium.

Although Montpellier is not a major destination for leisure visitors, the city possesses a charming city centre and its recently renovated Musée Fabre attracts visitors. During summer, Montpellier is a transit destination for inbound and outbound visitors to and from Spain and Italy.

Serviced Residences Market Overview Report Page 51 Prepared for DBS Trustee Ltd July 2010 H - 55

12.2. Serviced Apartment Market & Performance Review

Existing Supply

The existing supply of hotels in Montpellier comprise mainly of 2 and 3-star hotels. Approximately 60% of the city’s total hotel supply is dominated by hotel chains. This is higher than the average hotel chain penetration in France. Leading the market is the Accor group with an estimated 50% capture of the 3 and 4-star hotel supply. The InterContinental Hotels Group has the second largest market share in Montpellier.

Since 2005, the 3 and 4-star hotel room inventory in Montpellier has increased steadily. In contrast, the limited service segment experienced a more moderate growth of around 1.3% per annum on average from 1999 to 2010.

Historical Supply in Montpellier

3,000

2,000 No. of Rooms 1,000

0 1999 2005 2010 Select services Hotels 0-star to 2-star Superior Hotels 3-star to 4-star Serviced Apartments

Source: INSEE - Pôle de compétence Tourisme and Jones Lang LaSalle Hotels

Existing serviced apartment properties in Montpellier

Properties Name Location Star Grading No. of Units Appart'Hôtel Citadines Saint Odile City centre 3-star 147 Appart'Vacances Montpellier City centre 2-star 147 Citadines Montpellier Antigone City centre 3-star 125 Résidence Hotelière les Consuls de Mer City centre 3-star 118 My Suite Inn Montpellier City centre 3-star 113 Park & Suites Elégance Montpellier City centre 3-star 113 Citéa Montpellier Coupole City centre 2-star 96 Quality Suites Victoria Garden City centre 3-star 80 Citéa Montpellier Citadelle City centre 2-star 68 Total 1,007 Source: Jones Lang LaSalle Hotels, Industry Sources

Supply of serviced apartments in Montpellier remains limited with the presence of only nine properties totalling approximately 1,000 apartments. The majority of properties have an inventory in excess of 100 units with the largest at 147 units. Although the penetration of serviced apartment chains is high, some of the major serviced apartment brands such as Adagio do not have a presence in the market. Most of serviced apartments in Montpellier are relatively new and supply has almost doubled since 2004.

Serviced Residences Market Overview Report Page 52 Prepared for DBS Trustee Ltd July 2010 H - 56

Future Supply

Due to depressed economic conditions in 2009, many proposed projects were stopped or postponed by investors and the developers.

The recent commencement of the Crowne Plaza Hotel project on the site of the former Corum is expected to further enhance the city’s repositioning as a business destination. The hotel is scheduled to open in 2011.

Demand

With only a few large international companies located in Montpellier, corporate demand tends to be driven from the domestic market. In the leisure segment, the city attracts a larger share of international visitors. International visitors are represented by the UK, Spain, Italy and Germany. In 2009, domestic demand accounted for around 77% of total demand. The business clientele represents 52% of the total demand. Total hotel bed nights in Montpellier amounted to more than 900,000 nights in 2009, a 1.4% increase compared to 2008

Performance Review

As compared to other regions and cities in France, Montpellier has not been as adversely affected by the global economic crisis. Both 3 star and 4-star hotel segments have maintained similar RevPAR levels in 2008 and 2009. For the first five months of 2010, a combination of various factors including favourable weather and increased congress events have contributed to a strong growth in demand for the 4 and 3-star hotels. As a result, the 4-star hotels have experienced a 13.6% year-on-year increase in RevPAR for YTD May 2010 and the 3-star segment recording a 17.7% increase.

Montpellier 3-star Hotel Trading Performance

100 80% 70%

) 80 € 60% 60 50% 40% 40 30%

ADR/RevPar ( ADR/RevPar 20% 20 (%) Occupancy 10% 0 0% 2007 2008 2009 May 2009 YTDMay 2010 YTD Source: Deloitte ADR RevPar Occupancy

Montpellier 4-star Hotel Trading Performance

160 80% 140 70%

) € 120 60% 100 50% 80 40% 60 30% 40 20% ADR/RevPar ( ADR/RevPar 20 10% (%) Occupancy 0 0% 2007 2008 2009 May 2009 YTD May 2010 YTD

Source: Deloitte ADR RevPar Occupancy

Serviced Residences Market Overview Report Page 53 Prepared for DBS Trustee Ltd July 2010 H - 57

In the long term, market occupancy is likely to plateau at 65% as the market experiences sharp fluctuations in inbound visitation over the year. The peak season are the European summer months with many visitors transiting in Montpellier on route to Spain or Italy. The months of December and January are low season and occupancy of hotels during this period typically declined to below the 50% level.

Market Outlook

Montpellier remains a secondary city in term of size and economic importance. However, fostered by proactive local government initiatives and a favourable investment climate, the city has been growing strongly in the past years and aims to extend its international reach in the coming years.

The policies implemented by the municipality and the region will be crucial in creating a robust environment for the development of hotels. Plans for reclamation of land to extend the city towards the sea are likely to materialise.

Although there are a number of hotels proposed to enter the market, it is unlikely that many will materialise due to a lack of interest by investors. As the hotel and serviced apartment market is highly competitive, opportunities to develop remain limited and only sites with good economic fundamentals are likely to attract investors.

The Montpellier market has proved resilient to the impact of the global economic downturn during 2009 as compared to other cities and regions in France. While the city’s economy is expected to recover gradually, performance in 2010 is expected to increase though probably not in the same proportion as observed in the first five months of the year.

Occupancy could start rising by the end of the year and hoteliers will then be able to slowly raise ADR throughout 2011. Further to 2014, a high speed train liaison with Barcelona will be positive for the city’s hotel market.

Serviced Residences Market Overview Report Page 54 Prepared for DBS Trustee Ltd July 2010 H - 58

13.0 LILLE SERVICED RESIDENCES MARKET OVERVIEW

13.1. Lille Economic Overview

Lille and its metropolitan area comprise a total of 85 municipalities and an estimated 1.1 million residents. It is the fourth-largest metropolitan area in France, behind Paris, Lyon and Marseille in terms of size. The city is also part of the Eurométropole Lille-Kortrijk-Tournai (EGTC), a new form of governance created by European regulators in 2006 to facilitate and promote cross- border and regional cooperation.

Strategically located in the centre of Europe, Lille is within an hour train journey from Brussels and Paris and 80 minutes from London. High speed trains serve the city regularly. The city’s road network is also extensive, with major highways linking the city to Paris, Belgium and Luxembourg. Visitors travelling from the United Kingdom (UK), Netherlands, Belgium or northern Europe towards southern France and Spain need bypass the city of Lille.

The Lille Lesquin airport is situated in the south west of the city, just seven kilometres away from the city centre. The opening of new air routes by low cost carriers has contributed to the increase in passengers received by the airport which recorded a total of 1.1 million passengers in 2009.

During the period of industrialisation, the city of Lille was an important industrial hub specialising in food processing, textile and engineering. The city also prospered due to mining activities in the nearby coal mines. After the decline of the industrial era, the city continued to leverage on its previous trading expertise and developed several international retail and service brands. These brands which include the 3 Suisses, Arc International, Bonduelle, Auchan, Castorama, Cofidis, Decathlon, Paul or La Redoute, all of which today have become international labels. The city also continues to benefit from its excellent location at the crossroads of several trade routes.

Lille is ranked second in terms of the number of international corporate headquarters located in France. The city is positioned together with Lyon as the second largest cities in France in terms of financial and insurance services. Local banks such as Banque Scalbert-Dupont (CIC group), the Crédit mutuel Nord-Europe (Crédit Mutuel Group) and the Crédit du Nord are prominent in the French banking industry. There are a total of six French insurance companies headquartered in the city. In addition, Lille is also the largest textile centre in France but this sector competes aggressively with other countries.

More than 150 private and public research centres have been established within the Lille metropolitan area. Majority are specialised business and research clusters which focus on health, nutrition, rail transportation, home shopping and innovative sales technologies. Lille also has the third largest student population in France after Paris and Lyon, with more than 100,000 students.

It has taken considerable time for Lille to transform its image from a post industrial battered city with its wasteland and unused factories to present day Lille. Infrastructure works which were carried out in the 1980s and 1990s contributed to its economic rejuvenation and the city was able to re-position itself as a corporate and tourist destination. The historic districts were also refurbished and major cultural events were organised. This rejuvenation strategy culminated in 2004 with Lille achieving the status of European capital of culture for the year.

Serviced Residences Market Overview Report Page 55 Prepared for DBS Trustee Ltd July 2010 H - 59

13.2. Serviced Apartment Market & Performance Review

Supply

Majority of the hotel supply in Lille comprise hotels in the limited service segment which represents nearly 70% of the total hotel inventory. Upscale supply remains limited with only 330 rooms in the 4-star and above category.

The Accor group has the largest presence in Lille, with a total of 14 hotels located throughout the city. The current serviced apartment supply remains very limited. Unlike other French cities such as Grenoble, Nantes and Toulouse which experienced a boom in the development of serviced apartments; this has not been the case for Lille. Some prominent local French serviced apartment brands such as Adagio have yet to establish a presence in Lille.

Historical Supply in Lille 2,500

2,000

1,500

No. of Rooms of No. 1,000

500

0 1999 2005 2010 Select services Hotels 0-star to 2-star Superior Hotels 3-star to 4-star Serviced Apartments

Source: INSEE - Pôle de compétence Tourisme

Serviced Apartment Location Star Grading No. of Units Appart Hôtel Lille Grand Palais 19 rue Berthe Morisot 2-star 134 Appart Hôtel Lille Euralille 30 les Jardins de l'Europe 2-star 134 Citadines Lille Centre Avenue Willy Brandt - Euralille 3-star 101 Citéa Lille Vauban 17, rue Colson 2-star 69 Total 438

Source: Jones Lang LaSalle Hotels

Future supply

Our research indicates there have been no major new hotel openings in 2009.

In the first half of 2010, a 142-room hotel comprising part of a mixed use development offering a selection of restaurants and a casino amongst other facilities opened under the Barrière brand.

The proposed supply pipeline is limited. Apart the above mentioned openings, there are no other major projects planned. We understand there have been discussions on the proposed conversion of the head office of the Chambre de Commerce (CCI) to a hotel but plans are in the preliminary stages. In addition, we understand several existing 3-star hotels are planning to refurbish their hotels to stay competitive but unable to confirm details.

Serviced Residences Market Overview Report Page 56 Prepared for DBS Trustee Ltd July 2010 H - 60

Demand

Lille has enjoyed healthy growth in both leisure and corporate demand in recent years. The opening of the Grand Palais exhibition and auditorium centre has been a significant factor in attracting MICE visitors to the city.

Leisure demand has also grown due to the revitalisation of the old city centre. The city has organised several cultural events including the Grande Braderie, a large-scale two-day street market which attracts up to two million visitors a year in September. In 2009, leisure demand represents 64% of the total demand.

In 2009, approximately 55% of the total visitor arrivals are international visitors. The city’s largest source market is the United Kingdom (UK), which accounts for an estimated 20% of total visitor arrivals. With Lille closely located to Belgium, visitor arrivals from Belgium represent a significant share of the total visitor arrivals. In 2009, the Office du Tourisme estimated total visitor arrivals from Belgium at 800,000.

Performance Review

Official data on the serviced apartment sector in Lille is unavailable. Similar to many cities in France, serviced apartments compete with hotels. As such, performance of serviced apartments mirrors closely to the hotel market.

With economic growth, hotel occupancy has increased from 2006 to 2008 together with the growing prominence of tourism for Lille. The 3-star hotel segment has seen growth in occupancy from 63% in 2006 to 68% in 2008. ADR has increased 9% resulting in an average annual growth of 8% in RevPAR over the period.

The global financial crisis in 2009 affected both corporate and leisure demand in the city resulting in declining occupancies below the 2006 level. However, ADR was resilient and increased marginally (1.3%) from 2008 to 2009 resulting in limited RevPAR decline.

The 4-star hotel segment’s trading performance was affected to a greater extent by the challenging economic conditions. The 4-star hotel segment experienced a similar upward trend in occupancy and ADR during the 2006 to 2008 period. In 2009, occupancy declined by seven percentage points and ADR dipped by 8% as compared to 2008. As a result, RevPAR in 2009 returned to pre-2006 levels.

The decline continued into 2010, with the first five months recording a year-on-year RevPAR decrease of 18.5% for the 4-star hotels. The 3-star hotels segment proved more resilient with a smaller decrease of 4.4% over the same period.

Lille 3-star Hotel Trading Performance

100 80%

) 70% € 80 60% 60 50% 40% 40 30% 20 20% ADR/RevPar ( ADR/RevPar 10% (%) Occupancy 0 0% 2006 2007 2008 2009 May 2009 May 2010 YTD YTD Source: Deloitte ADR RevPar Occupancy

Serviced Residences Market Overview Report Page 57 Prepared for DBS Trustee Ltd July 2010 H - 61

Lille 4-star Hotel Trading Performance

140 70%

) 120 60% € 100 50% 80 40% 60 30% 40 20%

( ADR/RevPar 20 10% (%) Occupancy 0 0% 2006 2007 2008 2009 May 2009 May 2010 YTD YTD

Source: Deloitte ADR RevPar Occupancy

Market Outlook

In the past, Lille suffered from its image as a former industrialised city lacking any real attractions. The city has since embarked on several tourism initiatives to promote its rich historical heritage including cultural activities which has attracted an increasing number of visitors and has heightened its international profile. Recent improvement programs and the status of European Capital of Culture in 2004 have further triggered increased economic and tourism growth.

Today, Lille benefits from strong economic fundamentals due to many international companies being headquartered in the city. Its contribution as the second largest financial and insurance sector in France as well as its prominence as a public and private research hub has contributed to its economic strength. In addition, Lille also offers a strong MICE infrastructure and the convenience of rail accessibility to other parts of Europe.

The hotel and the serviced apartment supply in Lille remains largely underdeveloped. Although the 4-star segment was negatively impacted by the economic slowdown, the 3 star market has proved more resilient. Performances in 2010 could continue on a downward trend though at a slower pace. We expect 3-star hotels to record a small increase by the end of the year.

The outlook for 2011 and 2012 is encouraging as the market is anticipated to see an increase in international visitations and corporate demand linked to the ambitious government economic clusters development plans.

Serviced Residences Market Overview Report Page 58 Prepared for DBS Trustee Ltd July 2010 H - 62

14.0 GRENOBLE SERVICED RESIDENCES MARKET OVERVIEW

14.1. Grenoble Economic Overview

Formerly a major industrial hub, Grenoble currently has a strong base of mid-sized industrial companies and a few industrial giants. Major companies in the city include STMicroelectronics France, Schneider Electric SA (Gpe), Hewlett-Packard, Becton Dickinson France SAS, Biomérieux and the headquarters of Caterpillar France. As these firms are highly dependent on exports, many have experienced difficulties during the economic downturn which has led to lower trade volumes. As a result, several companies reduced staffing levels during the bleak economic conditions. In 2010, we expect the domestic economy to progressively recover and companies to sustain operations in the city.

To attract more international firms, Grenoble has plans to develop new business clusters which will encourage economic growth. These clusters - the Bouchayer-Viallet zone and ZAC de Bonne, are located close to the city centre are currently under development.

The wider Grenoble area is the second largest research hub (in terms of number of scientists) in France. The city is also well-known for its research centres and universities. Among the most prestigious institutions are the Synchroton, the Atomic Energy Research Center (Commissariat à l'Energie Atomique) and the Minatec, a research centre dedicated to nanotechnologies. Major multinational companies such as Schneider Electric, Airliquide, Atos, Hewlett Packard or Sun Microsystems have established private research centres within the wider Grenoble area.

The existing road network in Grenoble is more extensive in the western part of the city. Currently, the city is connected to Lyon and Geneva by two highways in the north but lacks a road connection with the south of France. A new highway connecting the south will provide the city with more exposure as this would position it in the centre of a circular transport network, connecting Lyon and Switzerland to the South.

The TGV high speed train currently connects the city but a high speed rail track has not been completed on the Lyon to Grenoble sector and has hindered direct connection from Paris. Only a small number of trains operate daily. The absence of fast train connection limits accessibility to the city and decreases its competitiveness from other European cities which have better connections.

The government has initiated a new strategic plan termed Plan Campus to stimulate research, upgrade research infrastructure and attract new researchers and students to the city. The first results of the plan are expected to materialise by 2012.

The only tourism generator in the city is linked to the nearby ski resorts and people transiting from or to these resorts. During summer, some tourists stop in Grenoble, on route to Italy or South of France, but very rarely to visit Grenoble. Grenoble has an international airport that is mainly active in the winter season for the inbound and outbound transfers of skiers from Europe, in particular, the United Kingdom (UK). Hence, demand is predominantly corporate in nature.

Serviced Residences Market Overview Report Page 59 Prepared for DBS Trustee Ltd July 2010 H - 63

14.2. Serviced Apartment Market & Performance Review

Existing Supply

A large proportion of hotels in Grenoble are in the 2 and 3-star categories. The Accor group has the largest share in the market, with an estimated 26% of the total room stock in 2009, followed by the Louvre Hôtels group (Kyriad, Campanile and Première Classe) accounting for less than 15% of total supply. Approximately 47% of the total hotel room stock is independently operated.

Hotel room stock in Grenoble has been declining by an average of 1.3% annually from 1999 to 2010 as many small independent select service hotels have been unable to finance the cost of upgrading their properties to remain competitive in the market.

The serviced apartment sector competes with the hotel sector and the increase in the serviced apartment supply has affected the trading performance of hotels. The current positioning of the city as a business and research hub, with limited leisure demand has resulted in hotels targeting extended stay demand during the off peak corporate season.

Historical Supply in Grenoble 1,400 1,200 1,000 800 600 No. of Rooms of No. 400 200 0 1999 2005 2010

Select services Hotels 0-star to 2-star Superior Hotels 3-star to 4-star Serviced Apartments

Source: INSEE - Pôle de compétence Tourisme, Jones Lang LaSalle Hotels

Of the total accommodation stock in Grenoble, serviced apartment comprise a significant proportion. All the major serviced apartment operators have a presence in the market. Majority of the serviced apartments in Grenoble are relatively new with approximately 60% of inventory opened after 2005.

Property Name Location Star Grading No. of Units Résidence Les Balcons de Recoin Rue des gentianes 3-star 128 Citéa Grenoble 41, rue Maurice Dodéro 2-star 128 City Suites Grenoble Europole 25 avenue Doyen Louis Weil 3-star 121 Hipark 6 rue Auguste Genin 5-star 111 Citadines Grenoble 9-11 rue de Strasbourg 3-star 107 Residhome Caserne de Bonne 21 rue Lazare Carnot 4-star 100 Adagio Grenoble Berthelot 13-15 avenue M. Berthelot 3-star 100 Séjours & Affaires Marie-Curie 60/62, rue Félix Esclangon 2-star 98 Comfort Hotel Résidence 1, Avenue Paul Verlaine 3-star 73 Résidhotel Central'Gare 8 place de la gare 3-star 67 Résidhotel Grenette 12 rue de palanka 3-star 65 Apart'hôtel les Privilodges 1 r Guy Allard 3-star 52 Total 1,150 Source: Jones Lang LaSalle Hotels, Industry Sources

Serviced Residences Market Overview Report Page 60 Prepared for DBS Trustee Ltd July 2010 H - 64

Future supply

A substantial number of proposed serviced apartment projects were planned in 2007 to 2008 when the economy was flourishing and there was strong demand from corporate guests, teachers and researchers. With the global financial crisis affecting most economies including Grenoble’s economy, all proposed serviced apartment projects have come to a standstill due to difficulties in financing. The most recent openings of serviced apartment were the 111-unit Résidence Hipark and the 100-unit Résidence Adagio in 2010.

Demand

The total percentage of corporate demand to Grenoble is estimated at around 70%. International corporate clientele is estimated at around 25% of total bed nights due to the presence of large multinational firms.

Corporate demand in Grenoble is directly correlated to business activity in the city. This segment comprises international corporate executives who typically prefer staying at mid-range accommodation. The MICE clientele is closely linked to the Alpexpo congress centre and the World Trade Centre. MICE guests tend to be local or regional visitors who typically seek mid range hotel accommodation.

With the presence of several universities and private or public research institutes, many teachers and researchers tend to stay for mid to long-term period in Grenoble. They usually seek mid- range accommodation products. Although students studying at the universities typically stay at student housing near the universities, the existing student accommodation is insufficient to meet demand. Hence, students will opt to stay at serviced apartments occasionally but usually at serviced apartments which are rated 2-stars and below due to tighter budgets.

As mentioned previously, the leisure segment in Grenoble remains clearly underdeveloped and mostly corresponds to travellers in transit heading to Italy and Southern France in the summer and to the ski resorts in the winter. This segment usually stays no more than one day.

Performance Review

Over the recent months, both hotels and serviced apartments have seen a decrease in occupancy, due to the global financial crisis and increasing competition between hotels and serviced apartments.

Latest trading performance of serviced apartments indicate a 4.5% CAAG rate from 333,470 in 2007 to 363,860 in 2009. However, occupancy has declined from 69% to 57% during this period due the difficult economic climate and an increase in serviced apartment accommodation in the market. The table below highlights occupancy of serviced apartments from 2007 to 2009.

Serviced Residences Market Overview Report Page 61 Prepared for DBS Trustee Ltd July 2010 H - 65

Grenoble Serviced Apartments Historical Performance, 2007 to 2009 75% 70% 65% 60% 55%

Occupancy, in % in Occupancy, 50% 45% 40% 2007 2008 2009

Source: Office du Tourisme de Grenoble

During the same period, the share of international bed nights declined from 38% in 2007 to 25% in 2009, primarily due to the declining economic conditions and international companies implementing cost saving measures including a cut back in travel. The decrease corresponds to the 15.3% CAAGR decline in international bed nights from 2007 to 2009.

Domestic demand was sufficient to sustain overall demand but at the detriment of a decrease in ADR. Occupancy for the 3-star hotel category has declined from 61.7% in 2008 to 52.1% in 2009 while ADR has remained stable.

The downward trend in trading performance for serviced apartments is similarly reflected in the Grenoble hotel trading performance. Having said that, the market outlook for 2010 seems more positive as trading performance registered a year-on-year RevPAR increase of 13.2% for YTD May 2010.

Grenoble 3-star Hotel Trading Performance

160 70%

140 60% )

€ 120 50% 100 40% 80 30% 60 40 20% ADR/RevPar ( ADR/RevPar 20 10% (%) Occupancy 0 0% 2008 2009 May 2009 YTD May 2010 YTD

Source: Deloitte ADR RevPar Occupancy

Outlook for the market

Grenoble is most known for its research and teaching centres. The city has limited tourism attractions. As a result, demand for serviced apartments in Grenoble is highly dependent on corporate business exposing the market to downturn in economic conditions. Consequently, the hotel and serviced apartment market is weak.

Due to several new serviced apartment openings in recent years, the serviced apartment market has become more competitive. Proposed hotel developments which have been postponed could resume with improvements in market conditions. However, low trading performances of the hotel market will limit the attractiveness of the Grenoble market.

Serviced Residences Market Overview Report Page 62 Prepared for DBS Trustee Ltd July 2010 H - 66

Occupancy and ADR are expected to remain constrained throughout 2010 and 2011 with some recovery in occupancy over this period.

In the long term, the proposed Plan Campus should strengthen the attractiveness of the city as an international research centre and draw a growing number of researchers and teachers which is a positive trend for the serviced apartment market. The proposed highway linking Grenoble to southern France as well as a high speed train network will enable greater accessibility for visitors travelling from other parts of Europe to Grenoble. With the gradual recovery of the economy, Grenoble’s hotel and serviced apartment market is expected to slowly recover over the medium term.

Serviced Residences Market Overview Report Page 63 Prepared for DBS Trustee Ltd July 2010 H - 67

15.0 MELBOURNE SERVICED RESIDENCES MARKET OVERVIEW

15.1. Australian Economic Overview

IHS Global Insight expects the economy to grow 3.2% in 2010, supported by momentum provided by still-positive business and consumer confidence and a strong recovery in the country's terms of trade. The boost in the terms of trade is expected to boost national income, which should support spending. Consumption is projected to remain constrained by rising interest rates as well as muted income growth as the labour market is expected to improve at a more gradual pace. Business investment is expected to grow at a reasonable pace, as businesses boost investment in line with improvements in the global economy, and as access to credit for smaller firms improves. Australia's net export position is anticipated to worsen in real terms in 2010 as import volumes are projected to just outpace growth in global demand for export commodities. Inventory rebuilding is anticipated to continue to support growth throughout 2010. Beyond 2010, however, potentially softer demand for commodities by China as well as proposed changes to taxation of mineral-sector profits are risks to Australia's outlook. We see real GDP growth of 2.8% for 2011 as inventory rebuilding takes a break owing to potentially softer demand domestically and abroad.

Growth 2008 2009 2010F 2011F 2012F Population (mil.) 21.07 21.29 21.51 21.73 21.95 Consumer Price Inflation (% change) 4.4% 1.8% 3.2% 2.6% 3.0% Real GDP (% change) 2.3% 1.3% 2.9% 2.8% 3.4% Unemployment (%) 4.2% 5.6% 5.2% 5.1% 4.9% Policy interest rate (%) 4.25% 3.75% 5.00% 6.00% 6.50% Exchange Rate (US$, end of period) 1.43 1.11 1.12 1.14 1.12 Source: IHS Global Insight July 2010, Jones Lang LaSalle Hotels

The Reserve Bank of Australia (RBA) shifted to a tightening policy in October 2009, the first G20 country to do so. The RBA has since raised the leading interest rate by 150 basis points, as the economy is strengthening rapidly with inflation threatening to rise above the target range of 2–3%. The RBA's tightening cycle will likely take a pause through August 2010, allowing for an assessment of the economy's adjustment to the higher interest rates. The RBA is expected to aim to maintain a neutral policy setting for the rest of 2010, with the official cash rate rising to 5.00% over the course of 2011. Real government expenditure growth will be capped at 2% per fiscal year starting with the 2010/11 budget in July, unwinding the fiscal stimulus driving the economy since late 2008.

As the unemployment rate peaked at only 5.6% during 2009 and is now well on its way back down to 5%, concerns about labour market tightness are beginning to rise. It is unlikely that employment growth will continue at such a rapid pace in coming months however, skilled workers are expected to increasingly be in demand. The impending review of the government's immigration policy is expected to result in a new list of critical skilled-labour shortages, with shortages in the mining and engineering sectors likely to be targeted. .

Serviced Residences Market Overview Report Page 64 Prepared for DBS Trustee Ltd July 2010 H - 68

15.2. Melbourne Serviced Residences Market & Performance Review

Definition of Serviced Apartment

According to the Australian Bureau of Statistics’ Survey of Accommodation, serviced apartments are defined as establishments with 15 or more rooms which are not licensed to operate a public bar and which provide accommodation on a self contained basis including the provision of full kitchen facilities, linen and daily servicing.

Serviced apartments can either be sold on a per night basis or for extended periods and are viewed as a direct competitor to hotels.

Supply

As at the end of March 2010, the Australian Bureau of Statistics reported that there were 7,062 serviced apartments in 107 establishments in Melbourne tourism region, being the wider Melbourne metropolitan as serviced apartment data for Melbourne City is not available. This represents an average property size of 66 rooms, which is considerably smaller than the average of 156 rooms for a hotel.

Over the last eight years, the profile of the Melbourne accommodation industry has changed with the increasing prominence of serviced apartment accommodation. By comparison to 1997, Melbourne hotel room stock has increased by 70.4%, motel accommodation has decreased by 1.1% and serviced apartment accommodation has grown by a significant 328.2%. Reflecting this, serviced apartments have come to represent 27.0% of total accommodation room stock in 2009 compared to just 10.7% in 1997. This is a higher proportion when compared to other capital cities in Australia.

The majority of serviced apartment accommodation was developed between 1997 and 2005 with only 935 new rooms (14.2%) opening over the past four years. Serviced apartments are either stand-alone properties or part of a residential, hotel or mixed-use development and available unit configurations range from studios to penthouses, with one- and two-bedroom units being the most common. We estimate that approximately 75-80% of properties are located within Melbourne’s central business district (CBD).

Melbourne Tourism Region Accommodation Supply 1997 to 2009

30,000

25,000

20,000

15,000

No. of Rooms 10,000

5,000

0 1997 2001 2005 2009 Hotels Motels Serviced Apartments Source: Australian Bureau of Statistics, Jones Lang LaSalle Hotels

Serviced Residences Market Overview Report Page 65 Prepared for DBS Trustee Ltd July 2010 H - 69

Examples of Major Serviced Apartment Properties in Melbourne Project Name Location Star Grading No. of Units Ownership Quay West Suites Southbank 5.0-star 95 Single Grand Mercure Docklands Docklands 4.5-star 155 Single Medina Grand Melbourne Queen St 4.5-star 155 Single Oaks on Collins Collins St 4.5-star 271 Multiple Mantra on Little Bourke Little Bourke St 4.5-star 150 Multiple Quest on William William St 4.5-star 73 Multiple Paramount Apartments Exhibition St 4.5-star 62 Multiple Punt Hill – Little Bourke Little Bourke St 4.5-star 71 Single Quest Docklands Docklands 4.5-star 133 Single Mantra on Russell Russell St 4.5-star 221 Single Somerset Gordon Place Little Bourke 4.5-star 49 Multiple Somerset Gordon Heights Little Bourke St 4.0-star 43 Single Somerset on Elizabeth Elizabeth St 4.5-star 131 Single Medina Executive Flinders Street 4.5-star 63 Multiple Oaks on Lonsdale Lonsdale Street 4.5-star 122 Single Mantra 100 Exhibition St 4.0-star 87 Single Mantra on the Park Exhibition St 4.0-star 144 Single Source: Jones Lang LaSalle Hotels

Future supply

Our analysis of future accommodation supply pertains to Melbourne City as shown in the table following. As at March 2010, Melbourne City had 128 establishments with 16,902 rooms. This represents a 2.9% (483 rooms) increase in room supply when compared to 2009.

Melbourne City: Profile of the Accommodation Market Sub-Market Properties Rooms Average Size Inner 66 9,474 144 South & Docklands 15 3,004 200 Remainder 39 3,197 82 Port Philip West 8 1,227 153 Total 128 16,902 132 Source: Australian Bureau of Statistics, Jones Lang LaSalle Hotels

Accommodation openings in 2009 added 811 rooms to the existing stock in Melbourne City, representing an increase of 4.9% and included the Hilton South Wharf Melbourne (396 rooms), Melbourne Central YHA (63 rooms), Atlantis Tower (148 rooms), Cube Serviced Apartments (52 rooms) and Central Sky Lounge (152 rooms). While timed to coincide with the opening of major convention facilities, supply increases placed additional downward pressure on existing hotels when combined with the softer demand conditions, resulting in lower market occupancy levels compared to 2008.

During the first seven months of 2010, 1,388 new rooms have opened in Melbourne City. Projects include The Crown Metropole (658 rooms) Travelodge Docklands (294 rooms), Citadines Melbourne on Bourke (380 rooms) and Novotel on Collins (56 additional rooms) whereas The Olsen (229 rooms) opened in the broader city metropolitan and is therefore excluded from our analysis. There are a further 220 rooms under construction due to open in Melbourne City in the second half of 2010. Once all projects are completed, this will represent an increase of 9.5%.

Serviced Residences Market Overview Report Page 66 Prepared for DBS Trustee Ltd July 2010 H - 70

Jones Lang LaSalle Hotels is also aware of one proposed serviced apartment development which is considered likely to commence in the medium term which would result in a further net increase in supply of 216 rooms or 1.2% by the end of 2011.

Demand

With no limitation to the average length of stay, demand drivers for serviced apartments are similar to those for hotels with factors such as brand, star-grading, location and price, all determining factors.

A total of 53.12 million visitor nights were spent in Melbourne for the year ending March 2010, representing 12.1% of all visitor nights spent in Australia. Domestic visitor nights accounted for 34.2% (18.16 million) and international visitor nights 65.8% (34.96 million). Melbourne is Australia’s second busiest international gateway and attracts a higher proportion of international visitor nights when compared to Australia’s average of 41.4%.

International Tourism

Over the last five years Melbourne tourism region has recorded strong growth in international visitor nights averaging 9.3% per annum, which is higher than the Australian average rate of growth of 6.6% per annum. International tourism has been characterised by the following trends:

International tourism is primarily for the purpose of education (45.4%), visitation for holiday (22.5%) and visiting family and friends (18.4%); Most purposes of visit have recorded growth over the last five years besides convention (- 3.2%) with the most significant growth evident in VFR travel and education with visitor nights increasing by 11.1% and 10.8% respectively. Growth in business travel in Melbourne is higher than the Australian average growth of 7.0% per annum, benefiting hotels; For year to date March 2010 international visitor nights surged, up 9.8% on the previous year, higher than the Australian average growth of 5.3% with strong growth in the VFR and education segments, although these segments are not high users of hotels; The major inbound source markets are China (18.6%), Other Asia (16.6%), United Kingdom (8.0%) and Malaysia (7.1%). China, Other Asia and Taiwan have recorded the strongest growth increasing by 21.4%, 21.2% and 19.1% per annum respectively; International visitor nights represent 10.2% of nights spent in paid accommodation in Melbourne tourism region and have recorded growth over the last five years averaging 6.4% per annum. This is higher than the Australian average of -0.4% per annum which indicates that Melbourne hotels have grown their market share of inbound tourism; For the year ending March 2010, international visitor nights in paid accommodation in Melbourne declined by 7.3% compared to Australia’s 7.7% decline which indicates that Melbourne hotels have fared well than the general market.

Domestic Visitors

Domestic tourism has been weak by comparison over the past five years with visitor nights recording a decline of 0.6%. However, this is better than the Australian average where visitor nights have declined at an average rate of 2.9% per annum.

The primary purpose for visiting Melbourne is to visit friends and relatives (38.1%), followed by holiday (33.2%) and business travel (19.9%). The education and employment

Serviced Residences Market Overview Report Page 67 Prepared for DBS Trustee Ltd July 2010 H - 71

segments have recorded the strongest growth over the last five years increasing on average by 6.4% and 6.3% per annum respectively; Melbourne’s major domestic source markets include Sydney (21.2%), regional Victoria (20.1%) and Brisbane (11.9%); Most domestic source markets have recorded a reduction in visitation in line with the overall decline in tourism to the city. However, visitors from the Brisbane, regional New South Wales and Northern Territory have all recorded growth; The subdued performance of the domestic tourism segment over the last five years is in line with the national trend with adverse impacts such as the high Australian dollar, strong outbound travel growth and the poor perception that a domestic holiday holds with many Australians. Many of these impacts remain in 2010; The reduction in tourism to the City has had only a minimal impact on the accommodation market with domestic visitor nights in paid accommodation increasing by 1.6% per annum over the five year period. This is better than the Australian average where visitor nights in paid accommodation have declined on average by 2.6% per annum; For the year ending March 2010, domestic nights in Melbourne hotels decreased by 6.5% compared to Australia’s decrease of 3.3% which indicates that Melbourne hotels have fared worse in the generally declining market.

Performance Review

Market segment data is not available for Melbourne city, so we have made comment on the tourism region which is available.

In March 2010, the average daily rate in hotels was $175 compared to serviced apartments’ $160. This represents a premium of only 9.4%. Hotel ADR peaked in Melbourne tourism region in 2008 at $180 (+ 14.6%) compared to the peak in serviced apartments ADR at $158. However declines through 2009 have been most pronounced in the hotel segment.

Melbourne Tourism Region Accommodation Performance by Segment 2000 to 2009 $200 85% $190 80% $180 75% $170 70%

ADR $160 65% Occupancy $150 $140 60% $130 55% $120 50% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Hotels ADR Serviced Apartments ADR Tourism Region ADR Hotels Occupancy Serviced Apartments Occupancy Tourism Region Occupancy

Source: Australian Bureau of Statistics, Jones Lang LaSalle Hotels

Indicative results from STR Global using a basket of city hotels and serviced apartments highlights that trading performance has remained relatively stable during the first five months of 2010, following an overall weaker trading market in 2009. While occupancy levels remain high

Serviced Residences Market Overview Report Page 68 Prepared for DBS Trustee Ltd July 2010 H - 72

at 78.8% (+3.8%), ADR has continued to decline with rates reducing by 3.1% compared to the same period in 2009. Accordingly, RevPAR has recorded a marginal recovery averaging +0.6%.

Melbourne Tourism Region Accommodation Performance by segment December 2004 to May 2010

$220 85.0%

$200 83.0% $180 81.0% $160 79.0% $140 ADR / RevPAR ($) RevPAR / ADR

$120 77.0% % Level Occupancy

$100 75.0% Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Dec-04 Sep-05 Dec-05 Sep-06 Dec-06 Sep-07 Dec-07 Sep-08 Dec-08 Sep-09 Dec-09

Melbourne ADR - 12 month rolling average Melbourne RevPAR - 12 month rolling average Melbourne Occupancy - 12 month rolling average

Source: Australian Bureau of Statistics. Jones Lang LaSalle Hotels

15.3. Market Outlook

While MICE demand softened through 2009, the opening of the new ‘state of the art’ Melbourne Convention and Exhibition Centre (MCEC) in June 2009 bodes well for long term development of Victoria’s tourism industry. Located on the banks of the Yarra River, close to the CBD, the Centre was built by the Multiplex Plenary Consortium with the Government having committed $370 million to the project and is now the largest facility in Australia including a 5,000 seat plenary hall, the 396-room Hilton hotel, as well as a commercial, residential and retail precinct. The new Centre is expected to inject around $200 million per year into the Victorian economy over the next 25 years.

The 2010 State Government Budget also proposes that a further $200 million be provided for the expansion of the old Melbourne Exhibition Centre with completion scheduled to be in time for the Melbourne Motor Show in mid 2011. If approved, this investment would further cement Melbourne’s reputation as the premier MICE destination in Australia.

Over the last ten years, Melbourne has successfully positioned itself as the events capital of Australia and now offers an extensive calendar of events throughout the year. For example, the Australian Grand Prix has been secured until 2014 although the NSW Government has recently confirmed that they will be pitching to stage a night time Grand Prix at Sydney Olympic Park once Victoria’s contract end. In 2010, the event brought in around 305,000 spectators, compared to 287,000 in 2009. Similarly, the JBWere Masters also forms part of the Victorian Government’s golf tourism strategy, which aims to attract major golf events and increase tourist visitation and golf spectators to Victoria. In 2009, this event delivered more than $34 million to the Victorian economy and attracted a global audience.

Financing restrictions and softer demand conditions have also slowed the accommodation development pipeline considerably with many proposed projects put on hold. Government infrastructure spending has also resulted in construction costs remaining fairly constant whereas

Serviced Residences Market Overview Report Page 69 Prepared for DBS Trustee Ltd July 2010 H - 73

hotel values have declined, widening the hotel development feasibility gap. This is likely to result in fewer projects progressing in the medium term.

Serviced Residences Market Overview Report Page 70 Prepared for DBS Trustee Ltd July 2010 H - 74

16.0 PERTH SERVICED RESIDENCES MARKET OVERVIEW

16.1. Perth Serviced Residences Market & Performance Review

Supply

As at the end of March 2010, the Australian Bureau of Statistics reported that there were 2,544 serviced apartments in 42 establishments in Perth tourism region, being the wider Perth metropolitan as serviced apartment data for Perth CBD is not available. This represents an average property size of 61 rooms, which is considerably smaller than the average of 137.9 rooms for a hotel.

Over the last eight years, the profile of the Perth accommodation industry has changed with the increasing prominence of serviced apartment accommodation. By comparison to 1997, Perth hotel room stock has increased by 27.9% and motel accommodation has increased by 4.4%, however serviced apartment accommodation has expanded most significantly with room supply increasing by 90.0%. Reflecting this, serviced apartments have come to represent 23.0% of total accommodation room stock in 2009 compared to just 16.0% in 1997. This is a similar proportion when compared to other capital cities in Australia.

Perth Tourism Region Accommodation Supply 1997 to 2009

12,000

10,000

8,000

6,000

No. ofRooms 4,000

2,000

0 1997 2001 2005 2009 Hotels Motels Serviced Apartments Source: Australian Bureau of Statistics, Jones Lang LaSalle

The majority of serviced apartment accommodation was developed between 1997 and 2005, whereas serviced apartment room supply has reduced over the past four years with a decline of 213 rooms (-7.8%). Serviced apartments are either stand-alone properties or part of a residential, hotel or mixed-use development and available unit configurations range from studios to penthouses, with one- and two-bedroom units being the most common. We estimate that approximately 75% of properties are located within Perth’s central business district (CBD).

Serviced Residences Market Overview Report Page 71 Prepared for DBS Trustee Ltd July 2010 H - 75

Examples of Major Serviced Apartment Properties in Perth Project Name Location Star Grading No. of Units Ownership Mantra on Hay Hay St 4.5-star 152 Single Medina Executive Barrack Plaza Barrack St 4.5-star 100 Single Medina Grand Perth Mounts Bay Rd 4.5-star 138 Multiple Aarons All Suites Victoria Avenue 4.0-star 57 Multiple Mantra on Murray Perth Murray St 4.0-star 192 Multiple Mounts Bay Waters Apartment Hotel Mounts Bay Rd 4.0-star 160 Multiple Quest West End Serviced Apartments Murray Street 4.0-star 35 Single Somerset St Georges Terrace, Perth St Georges Terrace 4.0-star 84 Single Seasons of Perth Pier Street 4.0-star 118 Single Source: Jones Lang LaSalle Hotels

Future supply

Our analysis of future accommodation supply pertains to Perth City. As at March 2010, Perth city comprised 45 establishments with 5,836 rooms, which represents a slight reduction (-0.5% or 29 rooms) compared to one year earlier.

Accommodation room supply in Perth recorded a significant period of growth during the last supply cycle with the addition of 1,100 rooms between 1997 and 1999, increasing total rooms by 28%. However, this increase followed a period of supply withdrawal with 498 rooms (12%) having been taken out of stock between 1993 and 1995. Having increased modestly between 2001 and 2005, room supply has remained fairly constant over the last three years despite occupancy levels averaging 81.1%. Similar to other Australian centres, accommodation development in Perth has been held back by higher returns offered by competing alternate uses and the high cost of construction. Over the past five years, construction costs in Perth have increased at a very high rate in line with the strong demand for input materials and labour from the resources sector, of which Western Australia has been one of the major beneficiaries.

There are no accommodation room supply under construction forecast to open over the next few years. A number of projects have been proposed, two of which are progressed to a sufficient stage to be included in our current forecast however projects are not scheduled to open until late 2012. One of these projects is also located in the city metropolitan and the impact on the city accommodation market will therefore be reduced. These two proposed projects will increase Perth city accommodation room supply by 231 rooms or an increase of 4.0% on the existing stock once complete.

Demand

A total of 25.76 million visitor nights were spent in Perth tourism region in the year ending March 2010 and this represents 5.9% of all visitor nights spent in Australia. Domestic visitor nights accounted for 34.9% (9 million) and international visitor nights 65.1% (16.8 million). Perth is Australia’s fourth busiest international gateway and attracts a higher proportion of international visitor nights when compared to Australia’s average of 41.4%.

International Tourism

Serviced Residences Market Overview Report Page 72 Prepared for DBS Trustee Ltd July 2010 H - 76

Over the last five years Perth tourism region has recorded strong growth in international visitor nights averaging 5.7% per annum, which is slightly above the Australian average rate of growth of 6.6% per annum. International tourism has been characterised by the following trends:

International tourism is primarily for the purpose of education (29.7%), holiday (29.1%), and Visiting Family and Relatives (22.8%). All purposes of visit have recorded growth, but growth has been strongest in the travel for employment and business segments with visitor nights increasing by 28.3% and 14.1% per annum respectively. Growth in business travel is considerably higher than the Australian average where nights have increased by 7.0% per annum over the past five years and highlights how the resources boom has benefited business tourism in Perth. For the year ending March 2010 international visitor nights increased by 3.4% on the previous year, with strong growth in the education (+17.9%) and visiting family and friends (+15.1%) segments. This compares to the Australian average increase of 5.3% in the same period. The major inbound source markets are United Kingdom (18.1%), Other Europe (10.6%) and Malaysia (9.0%) whereas Taiwan, Korea and Other Asia have recorded the strongest growth increasing by 73.1%, 21.3 and 19.0% per annum respectively. To date, Western Australia has had low appeal with Chinese visitors, which has been one of the primary growth drivers in many other states. International visitors represented 42% of nights spent in paid accommodation in Perth tourism region to March 2010 and have recorded modest growth over the last five years, averaging (-1.3%) per annum. This is slightly higher than the Australian average of -0.4% per annum. The low rate of growth of visitor nights in paid accommodation compared to the general market indicates there is a high degree of seepage into other accommodation types, notably rented houses or units and homes of friends and relatives, reflective of the strong demand from the employment and VFR segments. For the year ending March 2010, international visitor nights in paid accommodation in Perth declined by 18.5% compared to Australia’s 7.7% decline which indicates that Perth’s accommodation market fared worse than the general market with a notable softening in demand.

Domestic Visitors

Domestic tourism has been weak by comparison over the past five years with visitor nights showing a marginal decline averaging 4.7% per annum. This is worse than the Australian average where visitor nights have declined at an average rate of 2.9% per annum.

The primary purpose to visiting Perth is for visiting friends and relatives (VFR) (41.5%), holiday / leisure (33.1%) and business travel (16.8%). All Segments have recorded a decline over the last five years. Employment and convention nights have recorded the most significant decline reducing by 14.1% and 10.8% per annum respectively. Some industry participants have highlighted the relatively high cost of travel to Perth as having had an adverse impact on the MICE segment, resulting in events being held elsewhere over the past few years. Perth’s major domestic source markets to March 2010 were regional South Australia (37.2%), Regional New South Wales (9.1%) and Adelaide (5.9%). Interstate visitors only accounted for 54.6% of all visitor nights spent in Perth tourism region to the year ending March 2010.

Serviced Residences Market Overview Report Page 73 Prepared for DBS Trustee Ltd July 2010 H - 77

Over the last five years, visitor nights sourced from Australian Capital Territory, Regional South Australia and Regional Queensland have all recorded growth. The subdued performance of the domestic tourism segment over the last five years is in line with the national trend with adverse impacts such as the high Australian dollar, strong outbound travel trend and the poor perception that a domestic holiday holds with Australians. However, the impact on Perth’s accommodation market has been less pronounced with domestic visitor nights in paid accommodation declining by only 3.5% per annum. For the year ending March 2010, domestic nights in Perth hotels decreased by 2.4% compared to Australia’s decrease of 3.3%. This indicates a considerable easing of the recent strong tourism demand and presents a concern for accommodation owners in the short term. We are aware that one major gold mining contract had artificially inflated occupancy levels in Perth CBD hotels over the past year, reported to be contributing approximately 6% of room night demand in the city. This contract ceased in April 2009.

Performance Review

Market segment data is not available for Perth city, so we have made comment on the tourism region which is available.

Hotel ADR peaked in Perth tourism region in 2008 at $171 (+1.7%) compared to serviced apartments’ $158 in 2009. While both segments have shown considerable rate resilience in 2009, it has been strongest in the serviced apartment sector with rates increasing 4.1% year on year compared to 2008.

Perth Tourism Region Accommodation Performance by Segment 2000 to 2009 85% $170 80%

75% $150 70% ADR $130

65% Occupancy

60% $110 55%

$90 50% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Hotels ADR Serviced Apartment ADR Source: Australian Bureau of Statistics, Tourism Region ADR Hotels Occupancy Jones Lang LaSalle Hotels Serviced Apartments Occupancy Tourism Region Occupancy

Indicative results from STR Global using a basket of city hotels and serviced apartments highlights that trading performance has declined during the first five months of 2010 as the performance of Perth’s accommodation market has lagged other state capitals by around six months. Occupancy levels for Perth remain relatively high at 82.2% but have declined by 1.1% compared to the same period in 2009. ADR declines, however, have been more pronounced, declining by 5.5% to $177. Consequently RevPAR has declined by 6.5% during the first five months of 2010.

Serviced Residences Market Overview Report Page 74 Prepared for DBS Trustee Ltd July 2010 H - 78

Perth Accommodation Performance: Selected Properties Moving Annual Average 2004 to March 2010 $200 87%

$180 85%

$160 83%

$140 81%

$120 79% Occupancy (%)

Average Daily Rate$100 ($) 77%

$80 75% Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09

Perth ADR - 12 month rolling average Source: Australian Bureau of Statistics, Perth RevPAR - 12 month rolling average Jones Lang LaSalle Hotels Perth Occupancy - 12 month rolling average

16.2. Market Outlook

Having recorded exceptional growth over the four years to 2008, trading in Perth hotels through 2009 and during the first five months of 2010 reflects a considerable easing of the recent strong tourism demand. Perth’s position as a key corporate and conferencing destination makes it vulnerable to any reduction in business travel and conference expenditure, particularly from the resources industry.

Accordingly the performance of Perth’s accommodation market has lagged other Australian state capitals by around six months and the recovery is expected to be muted as result. Perth hotels are expected to continue on their strong growth trajectory from 2011 given the relatively benign supply outlook whereas developments such as the Gorgon Gas Project and Pluto LNG development are expected to have a positive flow on effect for the hotel sector over the medium term.

Serviced Residences Market Overview Report Page 75 Prepared for DBS Trustee Ltd July 2010 H - 79

17.0 BEIJING SERVICED RESIDENCES MARKET OVERVIEW

17.1. Beijing Economic Overview

As the capital city of the People’s Republic of China, Beijing represents the nation’s cultural and most importantly, political centre. In 2009, the city ranked third among the country’s largest metropolitan areas – after Chongqing and Shanghai – having recorded a resident population of 17.4 million.

As the below graph shows, economic growth in Beijing has been robust in recent years with the annual real GDP growth rate constantly reaching above 11.0% between 2000 and 2007. In 2008 and 2009, Beijing’s economy slowed to a reported real growth rate of 9.0% and 10.1% respectively, down from an average of 12.1% in the five years up to 2008, mainly as a result of the post-Olympic investment slump and the onset of the global economic downturn. While the capital’s real GDP growth has been outperforming the nationwide growth, real growth rates in Beijing have trailed behind other coastal regions, such as Shanghai and Guangdong.

2000-2012 Forecast Beijing's GDP Performance

2,000 16% 1,800 14% 1,600 12% 1,400 1,200 10% 1,000 8% 800 6% RMB (billion)

600 RateGrowth (%) 4% 400 200 2% 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* 2011* 2012*

Nominal GDP Source: Jones Lang LaSalle Hotels, 2010 IHS Real GDP Growth China Global Insight Real GDP Growth Beijing * Forecast Notably, in the preparation to the Beijing Olympic Games 2008, the central government spent a record sum for the pre-Games preparation, including infrastructure development, residential and environmental projects. In total, a budget of around USD 41 billion was assigned for the city’s transformation. With the development of Beijing Capital Airport’s new terminal, four new subway lines, new expressways and additional road connections between the six concentric ring roads, accessibility to and throughout the city has been considerably enhanced. The Olympic Games itself, however, did not generate much for consumer spending and tourism revenues in 2008, but it is estimated that pre Games preparations added up to two percentage points on Beijing’s GDP growth per year in the lead-up to the event.

In the short to medium-term, analysts expect growth rates for Beijing to ease back to the trend average, as the combination of the post-Olympic slow down and the shift from manufacturing to the service industry creates a temporary growth decline. However, Beijing is home to one of China’s most prosperous consumer markets, and this, combined with high levels of government spending for the overall modernisation of the city, a high concentration of state-owned

Serviced Residences Market Overview Report Page 76 Prepared for DBS Trustee Ltd July 2010 H - 80

enterprises, its seat as China’s capital and the development of new high-tech industries should augment well for overall demand growth.

In recent years, FDI to Beijing has been very strong with a substantial number of the world’s leading companies having a presence in the city. The capital’s large and affluent consumer market, enhanced proximity to the broader market of north-east China and the large pool of talents have been positive factors in attracting foreign investors to the city. The municipal government has been promoting FDI to Beijing by introducing favourable tax policies as well as investment support. Following a 9.9% y-o-y decline in 2009 mainly as a result of the global economic slowdown, FDI to Beijing is expected to bounce back in 2010 supported by an ongoing positive investment environment.

China & Beijing Economic Indicators 2007 2008 2009 2010F 2011F 2012F 2013F 2014F Real GDP Beijing (% change) 13.3% 9.0% 10.1% 12.9% 10.7% 9.5% 10.0% 10.1% Real GDP China (% change) 13.0% 9.0% 8.7% 10.9% 8.6% 8.2% 8.6% 8.8% GDP per Capita Beijing (US$ / person) 7,529 8,903 9,898 11,202 12,946 15,133 17,887 21,053 GDP per Capita China (US$ / person) 2,560 3,403 3,678 4,156 4,748 5,484 6,416 7,498 Fixed Asset Investment Beijing (RMB billion) 397 385 486 560 659 772 899 1,033 Foreign Direct Investment Beijing (US$ billion) 5.1 6.1 6.1 7.2 8.5 9.9 11.4 12.4 Source: Jones Lang LaSalle Hotels, 2010 IHS Global Insight

17.2. Serviced Residences Market & Performance Review

Definition of Serviced Apartment

Whilst there is no official definition of the serviced apartment product in Beijing, for the purpose of this report our definition is understood to be: Resident profile: Apartment properties accepting short, medium and long term stay Positioning: Properties catering to high-end, international market Service package: Properties offering housekeeping services as a standard part of the service package Ownership structure: Properties owned by majority shareholders en-bloc Operators: Properties operated by developers, serviced apartment operators or hotel operators

Supply

The continuous growth of Beijing’s economy and foreign investment in particular led to another wave of new serviced apartment developments in the capital city between 2007 and 2008. The 2008 Olympics and the preceding construction moratorium created a concentration of new supply entering the market in 2007 and 2008.

Properties which opened in 2008 include Lanson Place, Shama Luxe Chang’an and Fraser Suites CBD. By the end of 2008, Beijing’s serviced apartment inventory totalled approximately 4,976 units. Supply growth between 2006 and 2008 reached a CAAG of 20.6%.

Serviced Residences Market Overview Report Page 77 Prepared for DBS Trustee Ltd July 2010 H - 81

The following chart illustrates historical supply development in Beijing’s serviced apartment market between 1986 and 2009.

Beijing Serviced Apartment Existing Supply 6,000

5,000

4,000

3,000

2,000

1,000

Serviced Apartment Supply (No. of units) of (No. Supply Apartment Serviced 0

90 98 02 1986 1988 19 1992 1994 1996 19 2000 20 2004 2006 2008

Source: Jones Lang LaSalle Hotels，Industry Source Existing Supply New Supply

In 2009, due to the financial crisis, a number of multinational companies withdrew their expatriates from China or reduced their accommodation budgets. Consequently, demand softened and rates fell. Meanwhile, increased competition from hotel supply and non-serviced apartments placed additional pressure on the performance of serviced apartments.

Properties opened in 2009 include Ascott Raffles City Beijing, Millennium Residences, and Sandalwood Beijing Marriott Executive Apartments. However, in 2009, a few owners decided to strata-title and sell their properties as the residential market was given a boost due to government’s stimulus policies. Accordingly, the aggregate supply of serviced apartments decreased. In addition, several serviced apartments were converted into strata-title sold units, including the Shama Luxe Chang'an, Marriott Serviced Apartments and Oakwood Residence (east third ring road).

Due to the deduction of these properties from our serviced apartment inventory, as of end 2009, Beijing’s serviced apartment inventory stood at 4,986 units, a marginal increase of only 10 units more than that in 2008.

Beijing’s serviced apartment supply is mainly concentrated in the city’s core international commercial areas, namely along the East Third Ring Road, CBD and East Chang’an Avenue. In addition, there are also properties located in areas that are less commercially vibrant, but enjoy good accessibility to major international commercial districts mentioned above. Examples include the Second Embassy Area and along the East Fourth Ring Road.

Emerging commercial areas, such as Haidian and Financial Street, have also attracted the development of serviced apartment properties as these areas begin to appeal to more foreign enterprises and as such, a resulting increase in real estate development.

Future Supply

Many international serviced apartment and hotel operators have already established their presence in Beijing. Many of these operators are also planning to introduce their various tiers and brands. For example Frasers Hospitality opened their Fraser Residences CBD East in 2007, Fraser Suites CBD in 2008 and a Fraser Place property is expected to open in 2011. Oakwood is currently operating two properties in Beijing, Oakwood Apartments Beijing and the newly-

Serviced Residences Market Overview Report Page 78 Prepared for DBS Trustee Ltd July 2010 H - 82

opened Oakwood Residences Beijing (Dongzhimenwai Xiejie). Overall, in addition to the 407- unit Oakwood Residences Beijing (Dongzhimenwai Xiejie) which opened in April 2010, we expect another 471 serviced apartment units to enter the Beijing market over the next two years. These include a 321 unit Oakwood Premier in 2010 and a 150 unit Fraser Place in 2011.

Demand

Demand for serviced apartments can be segmented as follows:

Japan comprised the largest geographic demand group, followed by North America and other European countries.

Mainland Chinese residents as the fourth largest segment are primarily short-stay guests who choose to stay at the serviced apartment as an alternative to hotels.

Impacted by the global financial crisis in 2008 and 2009, a number of multinational companies repatriated their Beijing based staff resulting in vacancies at a number of serviced apartment projects. In order to maintain a viable occupancy level, serviced apartment operators adjusted the strategy to focus on the domestic market, which led to an increase in mainland Chinese guests in 2009. The share of guests from mainland China in 2009 reached 13.9%, while the share was only 3.5% in 2006.

In terms of length of stay, our research indicates that among a broad selection of serviced apartments, approximately 63.4% of tenants stayed beyond six months, 24.8% between one to six months, and 11.8% less than one month. Long-term stay residents are the main source of demand for serviced apartments. Medium and short-term stay residents, by and large, serve as a secondary source of demand.

Performance Review

The below graph illustrates the quarterly performance development among a selected sample of serviced apartments in Beijing in between Q12000 and Q22010.

Beijing Serviced Apartment Performance

250 100.0%

200 80.0%

150 60.0%

100 40.0%

50 20.0% Monthly Rental Per sqm (RMB) (RMB) sqm Per Rental Monthly 0 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Source: Jones Lang LaSalle Monthly Rental Occupancy

Serviced Residences Market Overview Report Page 79 Prepared for DBS Trustee Ltd July 2010 H - 83

Due to the negative impact of the global financial crisis and increased competition from the influx of high-end hotel additions, rents started to decrease in the third quarter of 2008 and ended the year at RMB168 per square metre.

The declining trend in occupancies continued in the first two quarters of 2009. However, in the third quarter of 2009, occupancies started to pick up and reached 83.2% by the second quarter of 2010, which was the highest level since Q42006. This is mainly due to a few factors:

o Lower rentals - serviced apartments have become more competitive against hotels and non-serviced apartments and as such were able to capture market share.

o Increase in business activities - Along with the economic recovery, Beijing has seen a pickup in business activities which is bringing in new expatriates and generating fresh demand for serviced apartments.

Average monthly rent per square meter in 2009 declined from RMB160 in the first quarter to RMB152 in the fourth quarter, while rental rates increased slightly and reached RMB153 in the first quarter of 2010. In the second quarter of 2010, the average monthly rental experienced a 7.8% increase over the previous quarter, reaching RMB164.6.

Anecdotal evidence from interviews with serviced apartment operators suggests that the occupancy and rental increase could be due to conversion of some serviced-apartments into strata-title sale residential projects reducing the supply of serviced markets in the city. This has created a small supply and demand imbalance and allowed for existing serviced apartment properties to increase their rates along with the growth in occupancy.

17.3. Serviced Apartment Trends

Based on our analysis of the current market dynamics, the following commentary summarises some of the key trends in the Beijing’s serviced apartment market.

Generally lower housing budget levels: Over the past months, most multinational companies have reviewed and reduced housing budgets of their expatriate staff. Lower housing budgets across the expatriate residential sector will impose a ceiling on rental growth opportunities for properties in the short-term.

Changes to the expatriate mix: For expatriate families, multinational companies typically cover education and medical expenses for all family members and provide higher housing budgets allowing the renting of sufficiently large residential units. As such, relocating expatriate managers with families is generally more costly then relocating singles or couples. Expatriates with families tend to be middle to senior management. With increased pressure on rationalising costs, multinational companies have most recently shown a stronger propensity to localise middle and senior management positions in order to repatriate or to avoid relocating expatriate families. Heightened costs awareness has also resulted in a decrease in the proportion of families within the Beijing expatriate community and, on the other hand, has correspondingly increased the proportion of singles and childless couples. We note that this trend represent an opportunity for serviced apartments catering primarily to singles and couples.

Replacing long-term relocation with project work: Against the backdrop of higher cost sensitivity of multinational companies and an increasingly well-educated local labour pool, we see multinational companies exhibiting a stronger preference for moving foreign specialists into Beijing on an assignment basis, rather than relocating expatriates for a longer term. This has resulted in an increasing demand for medium-stay accommodation at the

Serviced Residences Market Overview Report Page 80 Prepared for DBS Trustee Ltd July 2010 H - 84

expense of long-term stay demand. With their ability to offer shorter lease terms than non- serviced residential units, serviced apartments will be well positioned to capitalise on this trend.

Competitive market environment: Intense and fierce competition has posed the greatest challenge to Beijing’s serviced apartment market in the past. The bulk of new supply having entered the market in 2008 and 2009 has put significant downward pressure on market occupancies. In particular as new serviced apartments located in core commercial areas became available at lower rents, serviced apartments in less central areas or properties with less maintained standards faced the greatest pressure on rates. However, as seen in results for the first half of 2010, the conversion of some serviced-apartments into strata-title sale residential projects had, to some extent, reduced competitive pressure among serviced- apartment properties.

Increasingly diverse competitive landscape: We also note that with the increase in serviced apartment supply, the landscape for this sector in Beijing has become increasingly diverse and fragmented. Serviced apartment operators with multiple brands will contribute to the creation of a higher degree of differentiation of properties resulting in a more diverse and clearly segmented market. Similarly, we have observed new supply entering new locations, e.g., the area around the Eastern Fourth Ring Road or Financial Street.

17.4. Market Outlook

The recent global financial crisis has generated a number of changes to Beijing’s serviced apartment demand, in particular as a result of heightened cost awareness amongst multinational companies. Although some signs of economic recovery are already evident across most of Beijing’s key feeder markets, it is likely to take some time before demand resumes back to pre- financial crisis levels.

In addition, Beijing’s high-end hotel market experienced a significant influx of new supply in the lead up to the Olympic Games. The pressure created by new supply has been aggravated by a decline in global travel demand as a result of the global financial crisis and has resulted in significant pressure on occupancy and room rates among hotels.

In view of the fierce competition in the hotel sector and discounted room rates, serviced apartments find it challenging to compete with hotels for short-term stay business. With a strong supply pipeline, a full recovery in demand is unlikely in the short to medium-term.

As a result, serviced apartments’ location, brand and the corresponding hardware standards (e.g., unit mix, level of facilities and services) will be increasingly important to determine a property’s ability to target and attract certain market segments.

Serviced Residences Market Overview Report Page 81 Prepared for DBS Trustee Ltd July 2010 H - 85

18.0 SHANGHAI SERVICED RESIDENCES MARKET OVERVIEW

18.1. Shanghai Economic Overview

Shanghai is the leading commercial centre and the most important port city in China. As the metropolis of one of the highest populated and fastest growing regions in China, major cities, such as Hangzhou, Suzhou and Nanjing, are located within a radius of only 300 to 400 kilometres.

As of end 2009, Shanghai comprised 18 districts and one county covering a total land area of approximately 6,341 square kilometres. The reported population was 19.2 million.

High income levels and an investment-friendly environment have helped propel Shanghai towards a modern and service-oriented economy. Shanghai’s role as the centre of the fast growing Yangtze River Delta has established the city not only as a regional trade and logistics hub but as well as China’s key financial centre. This strategic position has directly supported robust economic growth for the city in recent years. Economic growth rates in Shanghai have been constantly above national levels, although the gap between local and national growth rates has been closing over recent years.

In 2009, nominal GDP reached RMB 1,490 billion representing a real growth of 8.2% over 2008.

2000-2012 Forecast Shanghai's GDP Performance 2,500 16% 14% 2,000 12%

1,500 10% 8% 1,000 6% RMB (billion) 4% Growth Rate (%) 500 2% 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* 2011* 2012*

Nominal GDP Real GDP Growth China Real GDP Growth Shanghai

Source: Jones Lang LaSalle Hotels, 2010 IHS Global Insight * Forecast

The combination of Shanghai’s investment-oriented business environment and position as one of China’s key trade, finance, and logistics hubs has created arguably the best investment climate in the country. Foreign-invested enterprises today produce two-thirds of Shanghai’s total exports. Shanghai aspires to be China’s capital for financial services, automotive manufacturing, electronics and integrated circuitry, and international trade and logistics. Since 2002, Shanghai has also successfully started building a “headquarters economy” by boosting the number of regional headquarters and research and development centres of multinationals in the city. These are important factors that will continue to drive the city’s expansion in the service sector and move up to the higher-end of the global manufacturing value chain.

Serviced Residences Market Overview Report Page 82 Prepared for DBS Trustee Ltd July 2010 H - 86

China & Shanghai 2007 2008 2009 2010F 2011F 2012F 2013F 2014F Economic Indicators Real GDP Shanghai (% 14.3% 9.7% 8.2% 13.4% 10.5% 9.2% 9.6% 9.8% change) Real GDP China (% 13.0% 9.0% 8.7% 10.9% 8.6% 8.2% 8.6% 8.8% change) GDP per Capita Shanghai 8,623 10,440 11,353 13,020 15,039 17,600 20,883 24,698 (US$ / person) GDP per Capita China 2,560 3,403 3,678 4,156 4,748 5,484 6,416 7,498 (US$ / person) Fixed Asset Investment 446 483 527 568 633 727 827 939 Shanghai (RMB billion) Foreign Direct Investment 7.9 10.1 10.5 12.4 14.4 16.5 18.5 19.9 Shanghai (US$ billion) Source: Jones Lang LaSalle Hotels, 2010 IHS Global Insight

In preparation to the 2010 World Expo, Shanghai has been undergoing considerable infrastructural improvement. According to the municipal government, Shanghai has spent RMB 438.3 billion in civil construction, amounting to 25.5% of total fixed asset investment (FAI) over the past four years. With the expansion of Shanghai’s two airports (Pudong and Hongqiao) and the development of Yangshan deepwater port, these infrastructure improvements further augments a comprehensive metro line system, new expressways and additional elevated highways (in particular the middle ring road). Accessibility to and throughout the city has been enhanced considerably. As a comparison, Beijing spent a reported USD 41 billion (approximately half of Shanghai’s spending) in preparation of the 2008 Olympic Games.

The potential impact of the 2010 World Expo has been widely speculated. The six-month event, which hosts participants from more than 200 countries, is expected to have a far reaching and multi-faceted impact on Shanghai and the wider Yangtze River Delta economies. The Shanghai Tourism Bureau has estimated over 70 million visitors are expected to visit the World Expo and accommodation facilities have seen an increase in overnight demand generated by leisure, MICE and business travellers. With around 95% of all Expo visitors expected to be domestic demand, economy oriented accommodation, such as budget hotels are ranked among the key beneficiaries of this event.

Expo related MICE events are also generating lodging, catering and meeting facility demand at the higher-end and internationally branded hotels in the city. Additionally, a percentage of long- term stay demand is generated by delegates and companies seeking lodging facilities to accommodate their employees and visitors during the six month event.

Apart from the short-term benefits, it is believed that the 2010 World Expo will offer an exceptional opportunity for China to be showcased and experienced by the rest of the world, although only 5% of all visitors to the World Expo will be of foreign visitors (including Hong Kong, Taiwan and Macao).

18.2. Serviced Residences Market & Performance Review

Definition of Serviced Apartment

Whilst there is no official definition of the serviced apartment product in Shanghai, for the purpose of this report our definition assumes the following:

Serviced Residences Market Overview Report Page 83 Prepared for DBS Trustee Ltd July 2010 H - 87

Property profile: Apartment properties accepting short, medium and long term stay Positioning: Properties catering to high-end, international market Service package: Properties offering housekeeping services as a standard part of the service package Ownership structure: Properties owned by majority shareholders en-bloc Operators: Properties operated by developers, serviced apartment operators or hotel operators

Supply

In 2009, supply of high-end and luxury serviced apartments showed a year-on-year increase of 1.6% to 9,713 units. Only one project, the 272 unit Fraser Shanghai Residence opened in 2009, while Pinnacle Huashan was strata-title sold in the same year. Due to the strata title ownership profile, Pinnacle Huashan no longer meets our definition of serviced apartments and was removed from the supply inventory.

However, to capitalise on World Expo demand, the Lanson Place Jinqiao, Ascott Shanghai and Fraser Suites Top Glory Phase II collectively added a total of new 681 units to market supply in May 2010.

The serviced apartments that entered the market prior to 2001 were either managed by hotel operators or by the developers themselves. However, in recent years, an increasing number of serviced apartment projects are being managed by dedicated serviced apartment operators keen to have a presence in China including Shanghai.

The following chart illustrates historical supply development in Shanghai’s serviced apartment market.

Shanghai Serviced Apartment Existing Supply

12,000 10,000 8,000

6,000 4,000 2,000 0 Serviced Apartment Supply (No. of units) units) of (No. Supply Apartment Serviced 94 96 02 04 1990 1992 19 19 1998 2000 20 20 2006 2008

Source: Jones Lang LaSalle Hotels，Industry Source Existing Supply New Supply

However, similar to the Beijing market, as residential sales prices start to escalate in recent years, some en-bloc serviced apartment owners have started to strata-title sell their properties. This trend has subsequently decreased the overall supply of serviced apartments in the Shanghai market. Major serviced apartments which have been strata-title sold include Hengshan 41 (sold in 2008), Ascott Pudong (sold in 2008) and Pinnacle Huashan (sold in 2009). As such, we deducted these properties from our serviced apartment inventory in the years they were sold.

Serviced Residences Market Overview Report Page 84 Prepared for DBS Trustee Ltd July 2010 H - 88

As of end of 2009, Pudong New District (27.0 %) contributed the largest inventory of serviced apartments, followed by Changning District (20.1%), Xuhui District (16.4%) and Luwan (11.0%). The number of serviced apartment units located in these districts totalled to approximately 86% of total stock. The geographic distribution of Shanghai’s serviced apartments mirror the location of Grade A office buildings in the city, reflecting a preference for proximity of expatriate accommodation demand to commercial projects.

Future Supply

Shanghai’s new supply of serviced apartment units is expected to increase at an average annual growth rate of 5.0% between 2009 and 2011. This translates to approximately 993 units. The inventory will be provided by two planned serviced apartment projects, in addition to the newly- opened Lanson Place Jinqiao, Ascott Shanghai and Fraser Suites Top Glory Phase II. The two planned projects with a total of 312 units will be managed by international operators Oakwood and Fraser Hospitality respectively.

We emphasize that it is very difficult to ascertain the exact total volume of future serviced apartment supply, in particular as hotels and residential apartments can easily convert into serviced apartments and vice versa. Furthermore, developers of residential projects, as a corporate strategy, would typically hold off selling the units strata-title when the residential market is low and convert them into serviced apartments until the market recovers.

Demand

By geographic origin of serviced apartment residents, demand can be segmented as follows:

North America is the largest source of serviced apartment tenants, accounting for 30.4% of the residents amongst the properties surveyed. Europeans at 21.9% come in second, followed by Japanese (17.2%) and tenants from Hong Kong, Taiwan, China Mainland, other part of Asia and Australia.

Comparing housing allowances, European and North American companies tend to offer the highest budget of housing allowances. As serviced apartments tend to charge premium rentals over non-serviced properties, it is typical that senior management expatriates would normally receive higher housing budgets and hence tend to stay at serviced properties.

Based on recent anecdotal evidence, some serviced apartments in Shanghai have experienced an increasing proportion of demand from the domestic market. The domestic demand comprises primarily short-stay business travellers from other Chinese cities.

In terms of length of stay, our research indicates that among a selection of serviced apartments, 58.0% of tenants stayed beyond six months, 23.8% between one to six months, and 18.2% less than one month. Overall, serviced apartments in Shanghai primarily cater to long-stay tenants.

Performance Review

The following graph illustrates the quarterly performance development among a selected sample of serviced apartments in Shanghai in between 2Q2005 and 2Q2010.

Serviced Residences Market Overview Report Page 85 Prepared for DBS Trustee Ltd July 2010 H - 89

Shanghai Serviced Apartment Performance

300 100% 270 90% 240 80% 210 70% 180 60% 150 50% 120 40% 90 30%

MonthlyRentalsqm Per (RMB) 60 20% 30 10% 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2007 2008 2009 2010 Monthly Rental High-End Monthly Rental Luxury Source: Jones Lang LaSalle Occupancy High-end Occupancy Luxury

With the onset of the global financial crisis, luxury serviced apartment occupancy levels declined to 80.0% in 2009 (down by 9.2 percentage points from 2008). At the same time, luxury serviced apartment rentals decreased to RMB 244.8 per square meter per month, representing a 2.8% decline over 2008. By the second quarter of 2010, luxury serviced apartment rentals increased to RMB231.6 with the occupancy increased to 86.0%.

In 2009, high-end serviced apartments also experienced a fall in rental per square meter and occupancy rate. While occupancy dropped to 78.5% (down by 6.3 percentage points from 2008), rentals decreased to RMB 124.2. This represents a decline of 14.1% over 2008. Similar to luxury serviced apartments, high-end serviced apartment rentals increased to RMB130.3 with the occupancy increased to 88.0%.

Compared to earlier years, occupancies and rentals have declined at a significantly faster rate starting in the third quarter of 2008. This has predominantly been the result of the global financial crisis which has affected multinational corporations’ decisions on relocating, retaining and compensating expatriate staff in China. The market has witnessed a considerable number of expatriates moving out of serviced apartments as multinational corporations cut housing budget as part of corporate cost saving efforts. We are also aware the financial crisis has negatively affected the volume of new expatriate relocation in certain industry sectors, in particular the financial sector. As a result, there has been a notable decrease in demand for high-end and luxury serviced apartments. With many expatriates facing decreasing housing allowances, many have been extremely cautious and conservative on their accommodation budget resulting in declines in overall serviced apartment market occupancies and rentals over the past 12 to 18 months.

However, the Shanghai World Expo is having an overall positive impact on hotel and serviced apartment demand in the city. As seen in the half year 2010 performance results, both luxury and high-end serviced apartments in Shanghai have seen improvements, which is encouraging for the lodging sector as it emerges out of the impact of the financial crisis.

18.3. Serviced Apartment Trends

Based on our analysis of the current market dynamics, the following commentary summarises some of the key trends in the Shanghai’s serviced apartment market.

Serviced Residences Market Overview Report Page 86 Prepared for DBS Trustee Ltd July 2010 H - 90

Generally lower housing budget levels: Starting in the third quarter of 2008, most multinational companies in Shanghai have reviewed and reduced budgets for expatriate staff’s housing. Lower housing budgets across the expatriate residential sector will continue to place pressure on rental growth opportunities for serviced apartments in the near future. We understand some expatriates’ housing budgets have been lowered to levels at which serviced apartments are no longer possible housing options and expatriates are moving into residential units. Following housing budget cuts, a number of companies have also reduced allowances for ancillary expenses, such as utilities, transportation or laundry. As a response to lower housing budget allowances, serviced apartments have extended greater flexibility on rental terms.

Early terminations: Most serviced apartments in Shanghai have witnessed some early terminations in late 2008 and early 2009. Notably, most of these early lease terminations were due to reduced housing allowances rather than due to outright repatriations of expatriate staff.

Changes to the expatriate mix: Relocating expatriate managers with children is generally more costly then relocating singles or couples. With increased pressure to rationalise costs, multinational companies have most recently shown a stronger propensity to localise middle and senior management positions in order to repatriate or avoid relocating expatriate families. Heightened cost awareness has thus resulted in a decrease in the proportion of families within the Shanghai expatriate community and, on the other hand, a corresponding increases in the proportion of singles and couples. This may present an opportunity for serviced apartments to cater to singles and couples.

Replacing long-term relocation with project work: Resulting from pressure on cost reduction, multinational companies have also exhibited a stronger preference for moving foreign specialists into Shanghai on a short to medium-term assignment basis rather than relocating staff for a longer-term. As a consequence, demand for medium-term stay accommodation has increased over the past few months at the expense of long-term stay demand. With their ability to offer shorter lease terms than residential units, serviced apartments are however assumed to be better positioned to capitalise on this trend.

Industry sectors: As expected, the volume of relocations from the financial sector have declined in recent months as companies in this sector are more conservative in their expansion plans or are consolidating their operations. In contrast, demand from the pharmaceutical, automotive and fast moving consumer goods (FMCG) sector remained stable showing no or only little change.

Competition: Serviced apartments cater to both transient and long-stay business demand and as such tend to also face competition from hotels and residential strata-titled apartments. With the supply pipeline remaining strong fuelled by the 2010 World Expo, we expect occupancy and rate levels among Shanghai’s four and five-star hotels to continue to feel downward pressure in the short-term. As such, we would expect the competitive environment for serviced apartments to be challenging as they compete with high-end hotels for short-term stay business. In addition, in response to declining volume in expatriate relocations and cuts in housing budgets, high-end residential apartments are showing increasing flexibility in negotiating rentals and contract terms.

18.4. Market Outlook

The outlook for the Shanghai serviced apartment market is generally mixed. Similar to Beijing, we have noted a number of trends in the city’s serviced apartment market arising from the impact of the global financial crisis.

Serviced Residences Market Overview Report Page 87 Prepared for DBS Trustee Ltd July 2010 H - 91

The short term outlook for Shanghai indicates a high expectation of overnight demand from the 2010 World Expo. Pre-booking levels for short-stay demand (up to a few weeks) are satisfactory and the event is expected to lift occupancy levels throughout 2010. However, with competition remaining strong, the additional demand is unlikely to result in higher rental levels in the short- term. We believe it is likely to take some time for the new supply to be absorbed by the market before rental rate growth resumes.

Aside from the short-term impact resulting from the Expo, we believe that the six-month event will establish a lasting and positive effect on Shanghai and surrounding areas, and promoting Shanghai as an international tourist destination.

In addition, over the medium to longer-term, we expect Shanghai’s increasing importance as an international finance and shipping centre will further facilitate serviced apartment demand. The city has also most recently stepped up its efforts to attract multinational companies’ to set up their regional headquarters though financial incentives. The expansion of Shanghai’s headquarter economy is expected to ensure continuous presence and future growth of the senior management expatriate community in the city as is the case across many more mature Asian metropolises, such as Hong Kong, Tokyo and Singapore.

Serviced Residences Market Overview Report Page 88 Prepared for DBS Trustee Ltd July 2010 H - 92

19.0 TIANJIN SERVICED RESIDENCES MARKET OVERVIEW

19.1. Tianjin Economic Overview

Tianjin is situated in the north-eastern part of the North China plain, with the Yan Mountains to the north and Bohai Sea to the east. The city is one of China’s four municipalities, which include Beijing, Shanghai and Chongqing. Located about a 2-hour car drive from Beijing, Tianjin consists of 15 districts and three counties. With a coastline of more than 130 kilometres, the city covers a total area of 11,920 square kilometres. As at December 2009, Tianjin’s population reached close to 12 million, of which around 2 million live in the Binhai New Area.

Designated by the State Council as the growth engine for northern China, this status has spurred significant investment in the city’s secondary industries which has resulted in above-average economic performance in Tianjin in recent years. While increases in consumer spending have been moderate, investment in infrastructure projects and state-owned industries in and around Tianjin have maintained a healthy pace. The export-processing trade in Tianjin, especially for high-tech products, has performed well and has been bolstered by significant investment into the city’s port infrastructure.

According to official statistics, Tianjin’s GDP was approximately RMB 750 billion in 2009, approximately 4.6 times higher than in 2000. Tianjin’s real GDP growth has constantly outpaced the nation’s average and reached an average of 18.4% per annum between 2000 and 2009.

2000-2012 Forecast Tianjin's GDP Performance

1,400 20% 18% 1,200 16% 1,000 14% 800 12% 10% 600 8% RMB (billion)

400 6% RateGrowth (%) 4% 200 2% 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* 2011* 2012* Nominal GDP Real GDP Growth China Real GDP Growth Tianjin

Source: Jones Lang LaSalle Hotels, 2010 IHS Global Insight * Forecast

Fixed asset investment (FAI) is playing an increasingly significant role for regional growth in Tianjin. During the previous expansion cycle from 2002 to 2007, FAI as a share of Tianjin’s GDP rose from 37.5% in 2002 to 53.6% in 2008 – one of the highest levels among coastal cities. The same ratio soared to 66.7% in 2009, and is set to reach an even higher level with the undertaking of new stimulus projects.

During previous years, Tianjin experienced a significant capacity expansion in its electronics and IT-related industries, but most recently, growth in these sectors has been eclipsed by investment in the municipality’s chemical, automotive, and metallurgical industries. A large percentage of Tianjin’s FAI continues to come from SOE. By the end of 2009, SOEs in the city accounted for over 30% of total urban employment.

Serviced Residences Market Overview Report Page 89 Prepared for DBS Trustee Ltd July 2010 H - 93

Real-estate development remains one of Tianjin’s fastest growing fixed-asset categories. Despite measures imposed by the government to curb investment in real estate in other cities, such as Shanghai and Beijing, Tianjin’s real estate markets continued with vigour. Real-estate construction has consistently amounted to 15% of fixed-asset spending in Tianjin, and is expected to be strong given the level of government support for the municipality.

Tianjin has achieved considerable progress in recent years in creating a friendly pro-business environment to attract FDI. Between 2004 and 2009, FDI increased at 29.5% per annum, one of the fastest in China. To date, more than 100 of the Fortune 500 companies have invested in operations in Tianjin. In particular, the rapidly developing Tianjin Binhai New Area is highly appealing to both domestic and foreign investors. The development of this area started with the Economic-Technological Development Area (TEDA) in 1984 and since then has attracted a number of multinational manufacturing companies, such as LG, Sanyo, GE, Kyocera, 3M, Toyota, Nestle, Yamaha, Caterpillar, Motorola, P&G, Siemens and Airbus.

China & Tianjin Economic 2007 2008 2009 2010F 2011F 2012F 2013F 2014F Indicators Real GDP Tianjin (% 15.2% 16.5% 16.5% 17.4% 14.5% 11.7% 12.0% 12.2% change) Real GDP China (% 13.0% 9.0% 8.7% 10.9% 8.6% 8.2% 8.6% 8.8% change) GDP per Capita Tianjin 5,954 7,775 8,941 10,226 12,094 14,272 17,059 20,333 (US$ / person) GDP per Capita China 2,560 3,403 3,678 4,156 4,748 5,484 6,416 7,498 (US$ / person) Fixed Asset Investment 239 340 501 656 865 1,102 1,363 1,647 Tianjin (RMB billion) Foreign Direct Investment 5.3 7.4 9.0 11.5 14.4 17.5 20.5 22.8 Tianjin (US$ billion) Source: Jones Lang LaSalle Hotels, 2010 IHS Global Insight

The overall investment environment in Tianjin has also been enhanced by the elevation of the Binhai New Area by the State Council to “national strategic priority status” along with the city’s integration within the Beijing-Tianjin-Hebei economic corridor. Tianjin’s Binhai New Area has also been allocated by central government as a pilot area to introduce key reforms related to the financial sector as well as the opening up of business to the financial markets. This move will further facilitate Tianjin’s transformation from a primarily manufacturing driven economy into a service oriented market place.

19.2. Serviced Residences Market & Performance Review

Definition of Serviced Apartment

There is no official definition of the service apartment product in Tianjin. For the purpose of this market report, our definition shall be limited to the following: Resident profile: Apartment properties accepting short, medium and long term stay Positioning: Properties catering to high-end, international market Service package: Properties offering housekeeping services as a standard part of the service package Ownership structure: Properties owned by majority shareholders en-bloc Operators: Properties operated by developers, serviced apartment operators or hotel operators

Serviced Residences Market Overview Report Page 90 Prepared for DBS Trustee Ltd July 2010 H - 94

Supply

The most significant supply growth took place in 1998 when the Somerset Olympic Tower, Kyuuga and Ruijin Garden opened. This new supply in 1998 contributed to a 170% year-on-year increase, albeit coming off a very small base.

Another year with significant increases in supply was 2009. With the opening of the 250-room Somerset Youyi, the serviced apartment inventory in Tianjin increased by 31.4% over 2008. Again, the significant increase rate reflected the small base of Tianjin serviced apartment market. By the end of 2009, there were approximately 1,047 serviced apartments units in Tianjin.

As illustrated in the following chart, Tianjin saw different phases of serviced apartment openings rather than a continuous and linear supply growth as has been seen in other markets, such as Beijing and Shanghai.

Tianjin Serviced Apartment Existing Supply 1,200

1,000

800

600

400

200

Serviced Apartment Supply Serviced (No.Apartment of units) 0 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

Source: Jones Lang LaSalle Hotels，Industry Source Existing Supply New Supply

The majority of serviced apartments in Tianjin are clustered in Hexi District (53.3%), followed by Heping District (32.1%), which are also the key office submarkets in Tianjin. In addition, the two districts are popular as they offer a wide and established selection of commercial, shopping and entertainment developments.

Our research focuses and is based on developments in downtown Tianjin and does not include the Binhai New Area. With more shopping and entertainment amenities and as well as a more mature commercial market, downtown Tianjin is traditionally favoured by expatriates as a housing location. However, along with future development of the Binhai New Area, we anticipate more serviced apartments, high-end hotels and quality residential apartments will open and lodging demand to be generated by companies within the Binhai New Area.

Future Supply

Based on our research, there are currently three new serviced apartment projects under development in Tianjin and scheduled to open by end 2012. We note that a number of strata- titled serviced apartments have entered and will enter the market, including several international branded residences. Major projects include:

Serviced Residences Market Overview Report Page 91 Prepared for DBS Trustee Ltd July 2010 H - 95

Tianjin Centre Residence. The property opened in April 2009 and is located in Heping District with about 400 units. Tenants have access to facilities at the Raffles Hotel, which is located within the same mixed-use complex.

Westin Residences. The property opened at the end of 2009 and is located in the same building as the Westin Hotel. Although named “Westin”, the residences are managed by DTZ.

Modena. Modena is a brand launched by Frasers Hospitality. The Modena property in Tianjin is located in Heping District with 104 units and was strata-title sold in 2009. Modena is leasing the property on behalf of individual owners and managing the property.

Similar to the Beijing and Shanghai markets, the strata-titled serviced apartment properties generally do not meet the definition of serviced apartments utilised for our research. Having said this, due to the lack of quality residential apartments for lease in Tianjin, we believe that strata- titled serviced products will compete for the serviced apartment demand and to some extent increase the competition within the serviced apartment market.

Demand

Based on our research, key demand characteristics for Tianjin serviced apartments are outlined as follows:

Over 70% of Tianjin’s serviced apartment residents originate from Japan, consistent with previous years.

Strong expatriate demand from Japan is attributed to the extensive presence of major top Japanese companies in the city, such as Toyota and its affiliated companies.

With the establishment of the Airbus manufacturing base in Tianjin in 2009, we anticipated the volume of visitors from European countries will increase over the coming year.

Our research estimates that more than 83% of tenants tend to stay beyond 6 months, 11.8% between one to six months, and 5.3% for less than one month. Similar to Beijing and Shanghai, serviced apartments in Tianjin primarily serve long-term stay tenants.

Performance Review Tianjin Serviced Apartment Performance 250 100%

200 80%

150 60%

100 40%

50 20% Monthly Monthly Rental sqm Per (RMB) 0 0% 2004 2005 2006 2007 2008 Monthly Rental Source: Jones Lang LaSalle Hotels, Industry Sources Occupancy

Serviced Residences Market Overview Report Page 92 Prepared for DBS Trustee Ltd July 2010 H - 96

Similar to Beijing and Shanghai, Tianjin serviced apartment market was negatively impacted by the global financial crisis and subsequent economic slowdown. The decrease in demand, which was incurred due to the withdrawal of projects in Tianjin, resulted in a continued decline in occupancy. The overall occupancy rate of Tianjin serviced apartment declined to 70% as of September 2009, representing about 6.2 percentage points lower over the same period in 2008.

In 2009, the serviced apartment operators changed the rate quotation from rental per square metre to ADR, allowing them to enhance their comparison on performance with the hotel market as they increasingly compete for short and medium-term demand similar to hotels. Although data for 2009 is not available, the most updated data showed that as of April 2010, the overall ADR of Tianjin serviced apartment was RMB649 with market-wide average rate decreasing by about 8.7% as compared to the same period in 2009, which is mainly due to the significant decrease of ADR of TEDA International Club. Meanwhile, the market-wide average occupancy level maintained at about 70%.

19.3. Serviced Apartment Trends

Based on our analysis of the current market dynamics, the following commentary summarises some of the key trends in the Tianjin’s serviced apartment market.

Short-stay demand for serviced apartments is primarily driven by corporate demand. However, properties which have access to global distribution channels and online booking systems are increasingly attracting transient leisure customers.

Similar to the demand profile in Beijing and Shanghai, medium-term tenants comprise professionals who travel to Tianjin on an assignment extending over a longer period of time, as well as relocating expatriates who stay at serviced apartments while searching for a permanent residence.

Tianjin’s long-stay serviced apartment residents are mainly corporate expatriate. Expatriates tend to exhibit a stronger propensity to choose serviced apartments in the initial year of their assignments. Providing the comfort and convenience of an all-inclusive service package and international service standards, serviced apartments allow expatriates to bridge linguistic and cultural gaps when first moving to a new country or city.

An increasing number of expatriates, however, tend to move into larger non-serviced apartments units, once they have gained familiarity with the socio-cultural environment.

19.4. Market Outlook

Our outlook for Tianjin’s service apartment sector is as follows:

Similar to Beijing and Shanghai, Tianjin’s serviced apartment sector has suffered from housing and relocation restrictions associated with the global financial crisis. In particular, demand from Japanese and Korean companies has been seriously affected, putting pressure on achievable occupancy and rental levels among the city’s serviced apartments.

While it is very likely to take some time for expatriate demand to recover to pre-crisis levels, we anticipate with Tianjin maintaining a high proportion of FAI and in particular FDI, the key source for serviced apartment demand in the short to medium-term will continue to be provided by activities associated with construction projects.

Serviced Residences Market Overview Report Page 93 Prepared for DBS Trustee Ltd July 2010 H - 97

We note, however, that such project-related demand tends to stay for a few weeks or months only, hence supporting smaller units. As competition among local hotels intensifies, the extended-stay demand has been targeted by hotel operators as an attractive business segment to maintain some volume of base demand. As a consequence, serviced apartments are likely to see increasing competitive pressure from hotels in the market targeting the short to medium-term extended stay demand.

As the city’s key development area, much of the construction activities are centred in the Tianjin Binhai New Area which has created demand for serviced apartments in the area. While the area is perceived to be lesser established and lacking a lively and commercially mature atmosphere, new development projects as well as new supply entering the market will eventually transform the environment and surroundings. Eventually, the Tianjin Binhai New Area is expected to emerge as a large self-contained sub-market and current demand overflow to downtown Tianjin and vice versa will gradually decrease.

Tianjin’s medium to long-term outlook is generally positive. Central government has imposed a mandate for Tianjin to be the next “super business city” in China and as such, development and investment activities in the port city are therefore expected to remain strong. Large-scale investments such as Airbus’ manufacturing base is evidence of the city’s attractiveness to both national and international investors with Tianjin designated to eventually join the first-tier city ranks of Beijing, Shanghai and Guangzhou.

With a strong supply pipeline, we estimate that both occupancy and rentals will remain depressed in the short-term. In the medium-term when demand eventually recovers, occupancy rates will increase. It is not anticipated that occupancy or rates will achieve a strong recovery over the short-term.

Serviced Residences Market Overview Report Page 94 Prepared for DBS Trustee Ltd July 2010 H - 98

20.0 TOKYO SERVICED RESIDENCES MARKET OVERVIEW

20.1. Japan Economic Overview

Although still weak, Japan’s economy started to show faint signs of a recovery in the second half of 2009 and the first half of 2010. The global financial crisis and appreciation of the Japanese Yen against most major currencies compounded the detrimental impact to Japan which is heavily underpinned by an export-oriented economy. The country’s GDP recorded negative growth in 2008 and 2009 while the unemployment continues to remain high. With subdued domestic demand, the Consumer Price Index (CPI) registered declined throughout 2009.

Japan’s real estate sector has not been spared from the global financial malaise with land prices falling in most major cities. According to the Ministry of Land, Infrastructure, Transportation and Tourism’s research, the national average land price in the commercial district dropped by 6.7% during 2009 and 4.7% in 2008 as compared to the previous year. According to Jones Lang LaSalle’s research, office vacancy rate (Tokyo: Grade A) in the first quarter of 2010 has continuously scaled with average office rents falling by 3.7% as compared to the previous quarter (Q409) and 22.0% on year-on-year basis. These statistics reflect the continued weakness in office demand which has resulted from restructuring or downsizing in the corporate sector.

According to the Japanese Government’s Cabinet Office, the country’s Composite Index (CI), a major index indicator to general business conditions indicate the pace of recovery which started in the second half of 2009 has sustained through to the first half of 2010. However, when compared to other Asian economies, growth is expected to be slow for the remainder of 2010. In addition, Tokyo’s stock market, which showed an upward trend in the first quarter of 2010, has since declined on the onset of the Greek crisis.

Japan Economic Indicators 2007 2008 2009 2010F 2011F 2012F 2013F 2014F Real GDP Growth 2.3 -1.2 -5.3 3.2 1.6 1.5 1.5 1.8 Foreign Direct Investment (US$ billion) -51.7 -106.2 -63.0 -56.5 -54.1 -54.7 -55.9 -55.7 Source: Global Insight

20.2. Serviced Apartment Market & Performance Review

Definition of a Serviced Apartment

In Japan, a serviced apartment is defined as a property that meets the following criteria:

A fully furnished residential apartment; Provision of either manned or on-call front desk service; Provision of at least bi-weekly housekeeping service; and Accommodating residents who stay for more than two weeks.

Taking into account factors specifically location, facilities and branding, the serviced apartment market in Tokyo can be divided into three sub-categories: (i) upper-tier, (ii) mid-tier and (iii) budget. The table on the following page summarises the broad descriptions for the three sub- categories.

Serviced Residences Market Overview Report Page 95 Prepared for DBS Trustee Ltd July 2010 H - 99

Upper-tier Mid-tier Budget Standard Unit Size 50-75 40-70 20-35 (Studio) (sq.m.) (1BR) (1 BR) 35-60 (1 BR) Monthly Rental (JPY) 500,000-700,000 400,000-600,000 200,000-250,000 (Studio) 300,000-500,000 (1 BR)

Common Facilities Lounge, Fitness Centre Limited Limited

Type of Front Desk Front Desk Front Desk On-Call Service Frequency of Twice a Week Weekly Weekly or Bi-weekly Housekeeping Service Primary Location Roppongi Shinagawa Nihombashi Azabu Shirokane/Takanawa Shimbashi/Shiba Aoyama Ebisu Akasaka Meguro

Main Target Client Executive Expatriates Expatriates Expatriates Wealthy Individuals Domestic Business Domestic Business Celebrities Wealthy Individuals Leisure Tourists Leisure Tourists Property Examples Oakwood Residence Portfolio Bureau Portfolio Bureau Hakozaki Somerset Portfolio Court Annex Roppongi B-site Portfolio Roppongi Hills Residence Source: Jones Lang LaSalle Hotels

Upper-tier serviced apartment properties, with common facilities such as a resident’s lounge and fitness centre, tend to be located within the CBD or high-end residential area, whilst mid-tier serviced apartments, with limited common facilities, are mostly located in the CBD fringe or middle-class residential areas.

Conversely, suburban serviced apartments which comprise mainly budget properties offer low grade units and have a lack common facilities. The apartment unit mix in a serviced residence property is largely dependent on the primary target residents in that particular location. For example, if a serviced apartment is located within the CBD area, its primary target residents would predominantly comprise corporate clients and the property would also feature a high percentage of studio or one bedroom units.

In Tokyo, there are also several hotels which offer guestrooms with limited kitchen facilities and these units have been designed and marketed for short to long-term guests. These properties are known as “SA-style hotels” and whilst similar to serviced apartments, they rely on travel agents as the major indirect reservation channel similar to hotels while serviced apartments tend to rely on relocating companies. However, these SA-style hotels are considered direct competitors for short to mid-term guest demand similar to mainstream serviced apartments.

The majority of serviced apartments in Tokyo are currently managed by domestic serviced apartment operators with only a small but growing percentage managed by international serviced apartment operators like The Ascott Limited and Oakwood. In terms of number of properties and units under management, Space Design and Tokyu Stay, both domestic companies, are the leading serviced apartment operators, each with approximately 10 properties. The majority of these properties are positioned at the mid scale segment.

Following after Space Design and Tokyu Stay, Oakwood is the third largest operator with eight properties in Tokyo and Ascott at fourth position with three properties.

Besides the above operators, domestic developers such as Mori Building and Sumitomo also operate a small inventory of service apartments in the city.

Serviced Residences Market Overview Report Page 96 Prepared for DBS Trustee Ltd July 2010 H - 100

In terms of operational licence, some serviced apartment properties operate with a hotel licence while other properties operate as a residential property without a hotel licence. Local governmental regulations do not permit short term stays (less than a month) at properties without a hotel licence. In contrast, a property with a hotel licence can accommodate guests regardless of length of stay.

Supply

Based on our research, the number of serviced apartment properties in Tokyo, which reached 90 properties with 5,605 units in 2008, was reduced to 75 properties with 5,272 units as at the end of June 2010. The reduction is mainly attributed to conversion of some serviced apartments to ordinary residential properties. In 2010, two new serviced apartment projects with 305 units opened in the first half of the year and another project with 375 units will re-open in July 2010.

Recent serviced apartment supply in Tokyo includes the following:

2008 Tokyu Stay Aoyama Premier (170 units) Fraser Place Howff Shinjuku (375 units, closed in 2009) Mita Duplex C's (36 units) Minamiazabu Duplex C's (48 units)

2009 B:Conte Ariake (124 units) Citadines Shinjuku (160 units) Platine Nishi-Shinjuku (18 units)

2010 Tokyu Stay Nishi-Shinjuku (149 units - opened) Tokyu Stay Ikebukuro (156 units - opened) Hundred Stay Tokyo Shinjuku (375 units - scheduled to re-open in July 2010) (formerly known as “Frasers Place Holl Shinjuku”)

Demand

Overall demand to Tokyo’s serviced apartment market is generated by the international corporate and leisure guests. The higher grade properties tend to absorb demand from executive expatriates while the lower grade properties attract demand from leisure tourists.

At present, due to the immaturity of the serviced apartment in Tokyo, there is limited information or data available on demand for this lodging segment. As such, our analysis is based on a general market wide observation of trends and characteristics of the Tokyo accommodation market.

Total Number of Overnight Visitors in Tokyo (Million) 2007 2008 2009 Domestic Visitors 29.3 28.6 28.1 Growth % - -2.4 -1.6 International Visitors 7.9 7.3 6.4 Growth % - -6.5 -13.2 Total 37.2 36.0 34.5 Growth % - -3.3 -4.0 Source: Japan Tourism Agency

Serviced Residences Market Overview Report Page 97 Prepared for DBS Trustee Ltd July 2010 H - 101

. The total number of over-night stay visitors to Tokyo, which amounted to 36 million in 2008, showed a 6.8% drop to 33.5 million in 2009. This drop was attributed to the slowdown in business activities and consumers’ weakening sentiment. In contrast, the total number of overnight stay visitors in the first half of 2010 has shown some signs of a recovery.

Total Number of Over-Night Stay Visitors in Tokyo 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 Total# of Guests (Million) 0.0 1 2 3 4 5 6 7 8 9101112 2008 2.65 2.93 3.19 3.06 3.07 2.77 3.06 3.22 2.84 3.19 3.05 2.93 2009 2.64 2.67 3.2 2.89 2.88 2.57 2.93 3.23 2.86 2.95 2.81 2.91 2010 2.7 2.91 3.35 Source: Japan Tourism Agency Month

By demand source, domestic over-night stay visitors accounted for approximately 81.3% of the total over-night stay visitors in 2009 while international visitors accounted for 18.7%. The Tokyo accommodation market is more reliant on international demand, as compared to other markets in Japan. The numbers of domestic and international over-night stay visitors have declined by 4.7% and 14.9% respectively. According to quarterly statistics by the Japan Tourism Agency, the total accommodation demand has shown a recovery underpinned by an increase in international demand.

Total Number of Over-Night Stay International Visitors in Tokyo

1.0

0.8

0.6

0.4

0.2

Total # of Guests (Million) Guests of# Total 0.0 1 2 3 4 5 6 7 8 9101112

2008 0.560 0.564 0.669 0.725 0.617 0.595 0.693 0.591 0.558 0.719 0.573 0.486 2009 0.444 0.374 0.520 0.625 0.485 0.433 0.597 0.605 0.521 0.650 0.568 0.555 2010 0.521 0.555 0.653 Month Source: Japan Tourism Agency

Serviced Residences Market Overview Report Page 98 Prepared for DBS Trustee Ltd July 2010 H - 102

By market source, the US and Korea traditionally the two leading demand sources, both experienced a drastic decline in 2009. The decline has been attributed to the global economic climate and strengthening of the Japanese Yen. In contrast, demand from China increased in 2009 despite the economic downturn.

Top 10 Source Markets in 2009 - By Country of Residence

2.0 10.0%

0.0% 1.5 -10.0%

1.0 -20.0%

-30.0% Growth (%) # of Visitors (Million) # ofVisitors 0.5 -40.0%

- -50.0%

n s a UK USA orea ong ther China K O Taiw Australia France outh K Singapore S Hong

Source: Japan Tourism Agency 2008 2009 Growth(%)

20.3. Serviced Residence Trends

Since the onset of the economic downturn, corporate demand for serviced apartments in Tokyo during 2009 declined significantly with dwindling business activities, particularly in the financial sector. In addition, the strengthening of the Japanese yen against most major currencies and cautious consumer sentiments further aggravated to the decline of leisure demand to Tokyo.

Similar to hotels, serviced apartments have been under rate pressure during 2009 with a slow down in accommodation demand throughout the city.

However, for the first three months of 2010, underpinned by an increased level of business activities in the financial sector and economic recovery among the wider Asian countries, the serviced apartment market in Tokyo is reportedly witnessing an increase in demand.

In addition, the serviced apartment sector, which in the past was not popular with domestic and inbound leisure tourists, has been gaining popularity over recent years. The attraction of serviced apartments as an accommodation alternative to hotels is expected to further increase through Internet sites and the word of mouth recommendations.

20.4. Market Outlook

Japan’s economic recovery is expected to be gradual. Although there are signals of an increase in business activities, domestic consumer demand remains cautious and subdued. We expect the recovery of the serviced apartment market in Tokyo to lag behind the other serviced apartment markets in Asia. In addition, we anticipate the following:

Underpinned by the recovery of the global financial industry, demand from corporate expatriates is expected to recover over the medium term.

Serviced Residences Market Overview Report Page 99 Prepared for DBS Trustee Ltd July 2010 H - 103

The recovery of the Asian economies will have a positive impact with an accompanying increase in both corporate as well as leisure travel to Tokyo. Visitation from South Korea which was the Japan’s leading inbound market but plunged in 2009 due to the depreciation of Korean Won, has already shown an upturn since the end of 2009 in tandem with the Korean Won’s appreciation. Deregulation on the visa requirements for Chinese citizens is also anticipated to ease and increase visitation from China. The capacity of the two main airports in Tokyo - Narita and Haneda Airport will increase in 2010. Narita Airport increased its capacity by approximately 10% in March 2010. In addition, Haneda Airport will open a new runway dedicated to international flights in October 2010 boosting its capacity by approximately 34%. These increased capacities are expected to significantly improve the air traffic volume to Tokyo. Over the medium term, with limited new serviced apartment supply planned in Tokyo, the existing serviced apartment properties are expected to enjoy a rebound in demand.

Serviced Residences Market Overview Report Page 100 Prepared for DBS Trustee Ltd July 2010 H - 104

21.0 MANILA SERVICED RESIDENCES MARKET OVERVIEW

21.1. Philippines Economic Overview

Manila is the capital of the Philippines and the country’s largest city as well as the commerce, cultural and administration centre. Makati City is the business and financial centre and is home to many foreign embassies and multinational corporations, as well as the famous Ayala Centre. The other main area is the Ermita district together with the Malate district. These two districts form what is known as Manila’s tourist belt and are located along Manila Bay.

The Ortigas Centre, located at the boundary of Mandaluyong City, Pasig City and Quezon City, in the eastern part of Manila is also another fast-developing commercial and business centre. Aside from Ortigas Centre, the other important business district is the Bonifacio Global City (BGC). In the last few years, BGC has been attracting a significant volume of capital inflow and investment interest and has now overtaken Ortigas Centre and the other business districts. A number of hotel developments are also being planned in the area.

During the past three decades, the Philippine economy has seen strong economic growth, and been relatively resilient in the face of a number of internal and external economic shocks. The GDP peaked at a 30-year high of 7.1% in 2007, due largely to the upbeat performance of the services sector, in particular, the exponential growth of the business process outsourcing (BPO) sector. Robust consumer and investment spending also contributed to the high GDP growth in 2007.

Following this peak, economic expansion began to slow considerably, contracting to 3.8% in 2008 and 0.9% in 2009. The slowdown was attributed to the global financial crisis and a series of natural calamities, which recently hit the country.

Between 2010 and 2014, economic growth is expected to average around 4.5% per annum. Recent statistics show that Oversees Filipino Worldwide (OFW) remittances will continue to increase private consumption which is expected to drive up aggregate demand. The BPO sector is expected to maintain its position as the main driver of the economy and the anticipated growth potential of commercial and residential real estate is expected to bolster consumer confidence in the medium term reflecting high return expectations on property investments.

Philippines Economics Indicators 2007 2008 2009 2010F 2011F 2012F 2013F 2014F Real GDP Growth (%) 7.1 3.8 0.9 4.7 4.5 4.7 4.7 4.7 PHP:USD (average) 41.40 47.48 46.36 45.48 44.81 44.42 44.80 45.03 Foreign Direct Investments (in billion US$) -0.6 1.1 1.5 1.7 1.9 2.1 2.3 2.6 Source: IHS Global Insight, Jones Lang LaSalle Hotels

The appreciation of the Philippine currency is a result of the increase in foreign direct investments given that amounts entering the country are required to be converted into pesos. Most of these investments were focused on construction and real estate within the BPO industry. In fact, 2009 saw growth in foreign direct investment (23.1%) in spite of the crisis. The bulk of the investments came from the United States, Japan, Hong Kong and the Netherlands.

In 2009, the Philippine economy was challenged as the global financial crisis weakened economic growth. That said, the sentiment for 2010 remains cautiously optimistic with first quarter performance demonstrating that the economy has improved in line with competing Southeast Asian countries. However, recovery remains fragile and the government and business community remain mindful of the newly elected government though the general business community has expressed confidence and optimism for the newly-elected government. Rising

Serviced Residences Market Overview Report Page 101 Prepared for DBS Trustee Ltd July 2010 H - 105

energy costs which have increased approximately 30% this year have also driven up business expenses.

21.2. Serviced Residences Market Review

The serviced apartment market has been in existence in the Philippines since the early 1960s, but the market developed rapidly in the late 1990s with the entry of several international operators.

Definition of Serviced Apartment

Serviced apartments refer to a “fully furnished studio, suite or apartment including kitchen facilities under central management inclusive of housekeeping and maintenance services.”

Similar to other markets, the definition of a serviced apartment is open to interpretation. This is particularly due to the proliferation of “conversions”. In this overview, the focus will be given to the serviced apartment developments with recognised local or foreign operator offering a full range of services, for instance, housekeeping service, laundry service, sports/gym facilities, as well as a restaurant and/or room service available to all guests, and including additional facilities such as a business centre and conference room/s.

Based on building designs and operational styles, there are two (2) types of serviced apartments:

“Hotel-like” apartments are usually characterised by furnished studios or one-bedroom units under central management, equipped with central air-conditioning and communal facilities such as dining, laundry and housekeeping usually found in hotels.

“Apartment-like” units are similar to conventional residential condominium developments in terms of building design, flat size and internal layout. The services provided in this type of accommodation are shared with the other tenants in the development.

Supply

The development of the serviced apartment industry in Manila only started to gather pace in the 1990s with the opening of the first internationally managed property in 1999, Oakwood Premier Serviced Apartments (now re-branded as Ascott Makati). Prior to that, most serviced apartment developments (known locally as condotels) provided second-class accommodation to the domestic market and budget conscious international travellers. Since these serviced apartments are owner operated and locally managed, they were often inconsistently furnished. As a result, the long stay international corporate market has traditionally had little option but to stay at international five-star hotels in Makati. In the early 2000s, a number of international serviced apartment players started to enter the market, including Frasers Hospitality and The Ascott Limited.

As at June 2010, there are approximately 3,181 serviced apartment units located in Metro Manila. More than 83% are considered “hotel-like” units and only 17% are “apartment-like” units. In terms of concentration, approximately 55% of existing stock is still concentrated in Makati CBD. This is reflective of the fact that the majority of the offices of multinational companies are still located in the business districts of Manila, and in particular Makati CBD.

Serviced Residences Market Overview Report Page 102 Prepared for DBS Trustee Ltd July 2010 H - 106

Distribution of Serviced Apartment by Location and Type 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - Makati CBD Ortigas CBD Other Districts

Source: Industry Sources and Jones Lang LaSalle Hotels Hotel-like Apartment-like

In 2009, there were two new serviced apartment openings namely the 230-unit Oakwood Premier Joy-Nostalg Center, developed by Quantuvis Resources Corporation and the 136-unit Picasso Serviced Residences in Makati.

The following table shows selected prime serviced apartments in Metro Manila including the number of rooms, location and developer.

Development Location No. of Units Ascott Makati Glorietta 4, Ayala Center, Makati City 306 Somerset Salcedo H.V. Dela Costa corner L.P.Leviste Street, Salcedo Village, Makati City 150 Somerset Millennium 104, Aguirre Street, Makati City 138 Fraser Place Forbes Residences Valero Street, Salcedo Village, Makati City 150 Discovery Suites ADB Avenue, Ortigas Centre, Pasig City 220 Linden Suites San Miguel Avenue, Ortigas Centre, Pasig City 128 Oakwood Premier Joy-Nostalg ADB Avenue, Ortigas Centre, Pasig City 230 Source: Jones Lang LaSalle Hotels

Future Supply

From 2011 to 2014, five developments are expected to be added to the current serviced apartments supply, adding a total of 971 units to the market.

Project Name Location Estimated No. of Units Due Acacia Grove Hotel Filinvest, Alabang 262 2011 Discovery Primea Makati CBD 150 2013 Eton Tower Makati Makati CBD 245 2013 Edades Tower and Garden Villas Rockwell Center, Makati 114 2014 Total New / Proposed Supply 771 Source: Jones Lang LaSalle Hotels

A notable trend regarding future supply is the emergence of hybrid serviced apartment and residential condominium developments such as Discovery Primea, Eton Tower Makati, and Edades Tower and Garden Villas. The first several floors of these developments will be dedicated to serviced apartment units, while the residential condominium units will occupy the upper floors.

Serviced Residences Market Overview Report Page 103 Prepared for DBS Trustee Ltd July 2010 H - 107

The new Fairmont Manila hotel is due for completion in 2011, and is anticipated to increase competition in the luxury serviced apartment sector. The hotel will comprise 300 rooms and associated amenities, located near the Ayala Centre.

Demand

While expatriates are a major demand generator for serviced residences, business travellers and international visitors are increasingly turning to serviced apartments as an alternative accommodation to hotels although security continues to be a consideration for expatriates and businessmen seeking extended-stay options.

While we understand that the serviced apartment sector in Manila also caters to local demand, this segment continues to be relatively small by comparison.

Expatriates

There are no official statistics on the number of expatriates in Manila. However, an increase in foreign direct investments (FDIs) typically leads to an increase in foreign companies and residents increasing demand for corporate housing and serviced apartments by extension.

International Tourists/Business Travellers

As the business and administrative capital of the Philippines and an important tourism gateway, there is also healthy demand for serviced apartment accommodation in Manila from both business travellers and international tourists.

Metro Manila was the third most visited destination in the Philippines in 2009 (after Cebu and Camarines Sur) with 1.44 million visitors, representing 16% of total arrivals into the Philippines in 2009. This demonstrates a year on year increase of 6.77% over 20081.

Performance Review

Daily rental rates for serviced apartments are slightly cheaper than deluxe and upper-tier hotels. In the Makati Central Business District (CBD), daily rental rates at a serviced apartment typically range between USD 37 and USD 277 depending on the size of the unit and types of amenities while daily rental rates at serviced apartments in Ortigas CBD range from USD 75 to USD 251.

Apart from offering daily rental rates, serviced apartments also offer monthly rentals which tend to be preferred by multinational companies that need to house their employees (especially foreign expatriates).

The following table presents the monthly rentals of selected prime serviced apartments in Metro Manila.

1 2009 Industry Report: www.tourism.gov.ph

Serviced Residences Market Overview Report Page 104 Prepared for DBS Trustee Ltd July 2010 H - 108

Apartment Type Unit Size (square metres) Rental (in USD)

Studio 26-50 2,623 - 4,180 1-Bedroom 54-194 3,020 - 7,239 2-Bedroom 90-224 3,913 - 7,943 3-Bedroom 182-281 5,250 - 9,552

Note: (1) Conversion based on June 2010 exchange rate (US$1 = Php 46.3027) (2) Rates are as of June 2010 Source: Industry Sources

In the Philippines, the serviced apartment sector can be split into two distinct categories. High quality and purpose-built serviced apartments compete more directly with luxury hotels while lower quality serviced apartment units and conversions correlate closer with residential condominium units.

Average occupancy rates in Manila have remained relatively stable between 2008 and 2009 despite the slowdown in the global economy. In 2009, occupancy recorded by serviced apartments in Makati CBD and Ortigas CBD was 77% and 79% respectively and this far exceeded the occupancy recorded by Other districts which was 12 – 14 percentage points lower. The same trend has been reflected in the last five years.

Trading Performance of Serviced Apartments by Location

90%

80%

70%

60%

50% 2005 2006 2007 2008 2009 Makati CBD Ortigas CBD Source: Jones Lang LaSalle Hotels Other Districts

21.3. Serviced Residences Trends

Some general market trends include:

Emergence of hybrid serviced apartment and residential condominium developments such as Discovery Primea and Eton Tower Makati.

Increased competition between the ‘hotel-like’ serviced apartment and luxury hotel developments, due to intensified demand for luxury accommodation.

With the strong performance of the BPO industry in the Philippines, more foreign expatriates including BPO trainers and executives are entering the country, resulting in an increased demand for serviced apartment accommodation.

Serviced Residences Market Overview Report Page 105 Prepared for DBS Trustee Ltd July 2010 H - 109

The serviced apartment sector will experience increased competition from luxury and high- mid end residential condominiums. Approximately 11,000 luxury and high-mid end residential condominium units are expected to be completed between 2010 and 2015 in the areas of Makati CBD, Bonifacio Global City and Ortigas CBD.

21.4. Market Outlook

The outlook for the serviced apartment sector remains broadly positive in light of the steady recovery from the financial crisis experienced in 2009 and the anticipated increase in BPO activity over the coming years. This is evident in the various planned and ongoing serviced apartment projects in the areas of Makati CBD, Bonifacio Global City and Alabang, Muntinlupa City.

However, the increased competition from the residential condominium market could prove to be a potential threat to the serviced apartment sector.

That said, the stabilising economy with steady GDP growth expected in the next few years, in addition to the anticipated increase in tourist arrivals and continued growth in the BPO industry should continue to provide steady demand to the serviced apartment sector.

Serviced Residences Market Overview Report Page 106 Prepared for DBS Trustee Ltd July 2010 H - 110

22.0 HANOI SERVICED RESIDENCES MARKET OVERVIEW

22.1. Hanoi Economic Overview

As the capital city of Vietnam, Hanoi has played a pivotal role in the country’s economic reforms or doi moi. With the official restoration of full diplomatic relations with the United States in 1995, it immediately eased Vietnam’s entry into the ASEAN grouping the same year. The membership into ASEAN was a highly significant development for Vietnam as it paved the way to the country’s efforts in consolidating its foreign policy on international relations as well as gain access to additional and much needed trade and investment.

Against this framework of political and economic change, Vietnam continued on its path of reforms which culminated in a significant milestone achieved in 2006. After 11 years of preparation including eight years of negotiation, Vietnam became the World Trade Organisation’s (WTO) 150th member on 11 January 2007. The new status led to further swift changes in Vietnam's trade and economic regime. With a more transparent and clearer economic policy, the country opened its goods and service market which brought in a wave of foreign investments. In addition, with the elimination of investment barriers and as a member of WTO, Vietnam has also become an attractive destination for foreign investors. The changes in business investment environment brought an expansive spectrum of new business opportunities for the country.

Vietnam’s economic growth eased from 6.2% in 2008 to 5.3% in 2009. Vietnam’s GDP forecast for 2010 by Global Insight is 6.5%. According to the latest figures from the General Statistics Office (GSO) of Vietnam, the country’s GDP in the first half of 2010 was estimated at 6.16% over the same period in 2009. Hanoi’s GDP reached 10.1% for the first half of 2010, which is higher than the national average rate of 6.16%.

Vietnam Real GDP Growth 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 Annual GDP Growth (%) Growth GDP Annual 1.0 0.0 2006 2007 2008 2009 2010F 2011F 2012F 2013F 2014F F: IHS Global Insight Forecasts Source: IHS Global Insight

The Global Insight forecasts that growth for Vietnam will remain strong over the next five years (2010 to 2014), increasing at an average rate of 6.8% per annum. The 2010 Asian Development Outlook (ADO) expects Vietnam’s GDP to accelerate to 6.5% in 2010. The outlook also projects Vietnam’s rebound from the global economic recession to gain momentum this year albeit with some inflationary pressures.

Serviced Residences Market Overview Report Page 107 Prepared for DBS Trustee Ltd July 2010 H - 111

The capital city itself expects its economy to grow by an estimated 10.5% in 2010 and has revised its GDP target between 11% to 11.5% for the second half of 2010. In the first half of 2010, Hanoi has approved business registration licences for 9,400 enterprises with a total registered capital of about 85.7 trillion dong, a significant year-on-year increase of 53%.

Vietnam Economic Indicators 2007 2008 2009F 2010F 2011F 2012F 2013F 2014F Real GDP Growth 8.5% 6.2% 5.3% 6.5% 7.0% 7.2% 6.9% 6.4% Foreign Direct Investment (US$ billion) 6.5 9.3 6.9 7.7 8.4 8.7 9.1 9.5 F: IHS Global Insight Forecasts Source: IHS Global Insight

22.2. Serviced Residences Market & Performance Review

Definition of Serviced Apartment

As with many emerging countries, the serviced apartment sector tends to be an immature and unregulated market. In Vietnam including Hanoi and Ho Chi Minh City, there is no official definition for serviced apartments. Serviced apartments are unofficially graded A, B or C. The grading typically depends upon the management/brand, location, facilities, amenities and size of the development. The minimum required length of stay can differ, ranging from one day to one year, depending on room availability and the marketing strategy of the serviced apartment owner/operator. As such serviced apartments in Vietnam tend to compete with the hotel as well as residential leasing markets and the degree of competition varies with the project quality and positioning.

For the purpose of our research, we have taken into consideration developments which offer the broad parameters of service apartments in Asia. These include as follows:

A fully furnished residential apartment with kitchen facilities; Provision of either manned or on-call front desk service; Provision of housekeeping service; and Rented out for lodging on a daily or longer basis.

Supply

The current inventory of serviced apartments in Hanoi is estimated to be approximately 1,800 to 2,000 units, majority of which are relatively small developments of less than 50 units. By location, the Ba Dinh, Tay Ho/West Lake and Hoan Kiem districts account for most of the serviced apartment inventory in the city. In particular, the Tay Ho/West Lake locality is favoured by expatriates and has the largest concentration of serviced apartment units.

Historically, the first quality serviced apartments were developed in the late 1990’s mirroring the economic growth of the city. Supply of quality serviced apartments in Hanoi has traditionally been tight with demand often outstripping supply.

Major international serviced apartment operators in the market include Singapore-based Keppel Land’s Sedona Suites Hanoi which offers 155 serviced apartments and 20 villas, the Fraser Suites Hanoi forming part of the Syrena Tower complex and featuring 170 apartments, as well as The Ascott Limited’s three Somerset-branded serviced apartment developments, with a total inventory of 457 units (approximately 20% of total stock). Collectively, the three operators have close to 800 units under their management.

The remaining inventory of serviced apartments in Hanoi is mainly owner/developer managed and offer varying degree of quality and services. Not all the developments are purpose built

Serviced Residences Market Overview Report Page 108 Prepared for DBS Trustee Ltd July 2010 H - 112

serviced apartments and often residential conversions resulting from a surplus residential inventory. As some developers are considering returning the inventory back to the strata sales market when the real estate recovers, the physical product and amenities offering at these ’converted’ projects is often sub quality to the dedicated serviced apartment developments.

Listing of Major Serviced Apartment Developments in Hanoi as of June 2010 Project Name Location No of Units Sofitel Serviced Apartments 1 Thanh Nien Road, Ba Dinh District 36 Mayfair Hanoi 34B Tran Phu Street 48 Rose Garden Apartments Ba Dinh Approx 50 Daeh Apartments 360 Kim Ma Street, Ba Dinh District Approx 50 Somerset West Lake 254D Thuy Khue Street, Ba Dinh District 90 Somerset Grand Hanoi 49 Hai Ba Trung Street, Hoan Kiem District 185 Sedona Suites Hanoi To Ngoc Van Street, Quang Ba, Tay Ho District 155 units + 20 villas Somerset Hoa Binh Hanoi 106 Hoang Quoc Viet Street, Cau Giay District 206 Fraser Suites Hanoi 51 Xuan Dieu Street, Tay Ho District 170 Source: Jones Lang LaSalle Hotels, Industry Sources

The current serviced apartment supply situation in Hanoi remains tight. New additions over the next 12 months include 135 units which will comprise part of the Crowne Plaza West Hanoi Complex in Tu Liem district. To be managed by InterContinental Hotels Group together with the 393 room Crowne Plaza, the complex is scheduled to open in the second half of 2010. Future supply is also expected to remain constrained and is likely to be located outside central CBD Hanoi. With the high entry barrier into Hanoi, a number of international serviced apartment operators such as Oakwood and Hotel associated serviced apartments remain keen to have a strategic presence in the market.

Demand

Demand for serviced apartments in Hanoi is driven primarily by expatriates as well as business travellers looking for extended stay options. As the capital of Vietnam, business travel to the city is often associated with government related activities which at times require an extended stay period and serviced apartments offer a more comfortable lodging option.

With the global financial crisis, Hanoi also faced a slowdown in expatriate movement as many multinationals put a freeze on new hires and embarked on a consolidation of their overseas operations. As foreign companies trimmed costs in the economic turndown, housing budgets were tightened resulting in a number of tenants seeking re-negotiations of their tenancy contracts or trading down on their accommodation.

Expatriates

Historically, in tandem with the increase in foreign investment in the city, Hanoi witnessed an upsurge in the number of expatriates seeking extended-stay accommodation. These expatriates can be classified into two broad categories – families with a preference for more spacious and quieter villas and young couples/singles with a preference for CBD apartment style accommodation.

There are no official statistics on the number of expatriates in Hanoi. However, with foreign direct investment (FDI) starting to return back to Vietnam and Hanoi, the number of expatriates working in the city is expected to rise. According to latest figures from the General Statistics Office (GSO) of Vietnam for the period from 1 January 2010 to 20 June 2010, Hanoi has attracted 96 licensed FDI projects with a total registered capital of USD 103 million. Vietnam as a whole attracted 438 licensed projects with a total registered capital of USD 7,905 million. For

Serviced Residences Market Overview Report Page 109 Prepared for DBS Trustee Ltd July 2010 H - 113

the full year of 2009, Hanoi successfully received 219 approved projects cumulating in registered capital of USD 413.9 million.

International Tourists/Business Travellers

The volume of international visitors to Vietnam in 2009 reached 3.8 million arrivals, which represented a decline of 10.9% from 2008. In the first half of 2010, international visitors to Vietnam have been estimated at 2,519,500, which reflect a healthy increase of 32.6% over the same period last year. By purpose of visit, visitors arriving for leisure were 1,595,200, representing an increase of 40.3%; for business: 502,000, up 44.6%; and visiting relatives: 288,900, an improvement of 2.9%.

Hanoi will celebrate its 1,000th birthday in 2010 with a series of activities and the trade anticipates the boost in tourism arrivals to the capital city, will result in a spillover to other parts of Vietnam. The Vietnam National Administration of Tourism (VNAT) expects Hanoi to achieve 27,000 billion dong (approximately USD 1.7 billion) in tourist receipts, two million international visitor arrivals and eight million domestic arrivals by 2010 as a result of the upcoming 1,000-year anniversary celebration of Hanoi.

With a tight inventory of quality hotel rooms in Hanoi, serviced apartments have provided international travellers, particularly business travellers, with an alternative accommodation option.

Performance Review

The Global Financial Crisis, combined with an increase in serviced apartment supply as well as new residential projects saw occupancies soften in 2008 and 2009, with average occupancies easing to the low 80% level. At the same time, average rentals decreased by around 10%. In addition, an increase in serviced apartment and hotel supply entering the market during 2008 and 2009 led to greater competition and choices for the travellers.

Our research indicates that for the first half of 2010, occupancy levels for the serviced apartment market in Hanoi based upon interviews with serviced apartment operator’s, reveal occupancies have softened compared to the same period in 1H 2009. Occupancies at present generally range from 75% to 85%. Along with the softening in occupancy during 1H 2010, average room rates have depending upon the property either stabilised or declined slightly.

The indicative asking monthly rentals of serviced apartment in Hanoi, based on five major serviced apartment projects (Somerset West Lake, Somerset Grand Hanoi, Fraser Suites Hanoi, Somerset Hoa Binh, and Mayfair Apartments) in June 2010 are provided in the following table:

Indicative Monthly Rentals* of Hanoi Serviced Residences by Unit Type Apartment Type ** Unit Size (sq.m.) Rental 1-Bedroom 54 – 78 US$2,400 – 5,700 2-Bedroom 75 – 125 US$2,900 – 6,300 3-Bedroom 106 – 180 US$3,850 – 7,200 4-Bedroom 182 US$8,000 - 10,000 * Rentals quoted during research conducted in June 2010 ** Excludes villas Source: Jones Lang LaSalle Hotels, Industry Sources

Serviced Residences Market Overview Report Page 110 Prepared for DBS Trustee Ltd July 2010 H - 114

longer term tenancies. Operational differences are limited, although the sales and marketing functions in the internationally managed properties are perceived to be more sophisticated.

22.3. Serviced Residences Trends

Some general market trends in the Hanoi service apartment market include:

Hanoi’s international serviced apartment market is still relatively undeveloped with a limited presence of internationally branded serviced apartments. Currently there are three “Somerset-branded” properties, a Sedona Suites and a Fraser Suites in Hanoi.

New branded serviced apartment supply remains constrained.

Despite the financial slowdown, demand for the upper end / Grade A serviced apartments projects is favoured against locally managed properties with security and safety being a major consideration.

Demand remains strong for the quality internationally branded serviced apartments as service amenities and quality of the development is typically higher than the local owner / developer operated projects.

Smaller units, the 2 bedrooms, 1 bedroom and studios are proving to be more popular as housing budgets tightened and family sizes reduced. Larger families tend to take up a residential leased apartment or a villa as their accommodation choice.

As more residential supply enters the market, we are witnessing increasing competition from the residential leasing market, a trend that is not expected to abate over the next few years.

The shortage of serviced apartment supply has led more foreign expatriates to source accommodation in the residential leasing market. We note the quality of local residential projects has improved in recent years and many Vietnamese are buying these units as investments and leasing to foreigners.

The expanded supply of accommodation choices in the city will place pressure for long term serviced apartments and some developments may revert to short term daily letting hence competing with the hotel market.

22.4. Market Outlook

The outlook for Hanoi’s serviced residences industry remains encouraging against the backdrop of a recovery in trading performance, limited new supply and anticipated improvement in the business operating environment and continued inflow of foreign investments. Some challenges however remain including intermittent electricity supply, rising competition from the residential leasing market and competition from other provinces in the country for foreign investment.

Key factors supporting an encouraging outlook include:

Hanoi’s economic and business outlook remains positive, facilitated by Vietnam’s official entry into the WTO, its ASEAN membership and strong foreign direct investment inflows.

Serviced Residences Market Overview Report Page 111 Prepared for DBS Trustee Ltd July 2010 H - 115

With signs of the broader Asian economies recovering, expatriate demand to Hanoi has started to gradually flow back. We also expect a growth in business travel to the city as companies restart and continue to explore investment opportunities in Hanoi and its surroundings. The return of investment as reflected by the growth in FDI projects and corporate activities in Hanoi for the first half of 2010 is an encouraging indicator for the serviced apartment sector.

New branded serviced apartment supply remains constrained allowing growth potential for the sector.

Tourism development has been accorded a major priority for the city.

With demand prospects encouraging coupled with a short to medium term tight supply situation, we expect the Hanoi serviced residences market will benefit and enjoy strong occupancy levels with rate growth potential over the medium term.

Serviced Residences Market Overview Report Page 112 Prepared for DBS Trustee Ltd July 2010 H - 116

23.0 HO CHI MINH CITY SERVICED RESIDENCES MARKET OVERVIEW

23.1. Ho Chi Minh City Economic Overview

Ho Chi Minh City (HCMC) formerly known as Saigon is the largest city in Vietnam and the economic capital for the country. As the former capital of the French colony region of Cochin china, the city is one of two (the other being Hanoi) major international gateways into Vietnam and one of the most popular destination for travellers to the country. Situated on the banks of the Saigon River, HCMC is only 60 kilometres from the South China Sea and about 1,760 kilometres south of the capital Hanoi.

Present day HCMC occupies an area of approximately 2,100 square kilometres comprising 15 districts and five sub-districts. The urban area occupies 140 square kilometres while the remaining area is mainly rural. Unlike Hanoi, HCMC centre boasts a presence of historic French colonial buildings and villas scattered throughout the city together with broad tree lined boulevards, legacies from its colonial past.

Over the last decade, HCMC has witnessed a phenomenal transition in its cityscape. The earlier low-rise landscape of the city's central area is now marked with high rise buildings, international hotels and a sprawling industrial hub. The city is also well connected to major destinations throughout the world by air and sea.

As the key contributor to Vietnam’s economic growth over the past decade, HCMC continues to be an economic centre and a transport focal point in the country. The economy of HCMC is diverse and has attracted a wide range of business including agriculture, construction, mining, seafood processing, finance and tourism. Approximately a third of the economy is generated by state-owned enterprises while the overwhelming majority is fuelled by Foreign Direct Investments (FDI).

As with many world economies in 2009, Vietnam also suffered from the global downturn due to the country’s high dependency on exports (in excess of 70% of GDP) and strong foreign investment. Furthermore, with economies of the biggest foreign investors to Vietnam - Japan, Korea, Singapore, and Taiwan experiencing a similar economic downturn, FDI to Vietnam and in particular HCMC fell significantly. Despite the slowdown, the city achieved a GDP of 8% for the year, slightly higher than at 6.8% attained by Hanoi.

Since the beginning of this year and with the recovery of many Asian economies, Vietnam has again started to attract investments. According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, foreign investors registered nearly USD 8.43 billion in FDI in the first half of 2010. The figure includes USD 525 million of additional capital for 121 existing projects, a year-on-year increase of 11% in value, and USD 7.9 billion of newly- licensed projects, a rise of 43% in terms of capital compared to the same period last year. FIA also reported that as many as USD 5.4 billion of FDI were disbursed in the period, representing a year-on-year increase of 6 %.

Preliminary GDP data for HCMC for the first quarter period of 2010 was recorded at 11%, positive economic indicator as compared to 3.5% for the same period in 2009.

With a population of over eight million people and more than 100,000 enterprises of different economic sectors, HCMC is home to over 30% of the country's total business and a key economic engine for Vietnam.

Serviced Residences Market Overview Report Page 113 Prepared for DBS Trustee Ltd July 2010 H - 117

23.2. Serviced Residences Market & Performance Review

Definition of Serviced Apartment

For the purpose of our research, we have taken into consideration developments which offer the broad parameters of service apartments in Asia. These include as follows:

Supply

The current inventory of serviced apartment in HCMC is estimated at between 2,500 to 2,800 units. Geographically, the majority of the Grade A serviced apartments are concentrated in the business district (District 1) or in close proximity (Districts 2 and 3). Grade B and C serviced apartments are typically located on the fringe of the business district and in the suburban localities. Grade B and C serviced apartments tend to be locally managed non branded properties and typically feature limited facilities and amenities. There are relatively few serviced apartments in HCMC with inventory greater than 100 units with the majority comprising less than 75 units.

Similar to Hanoi, the development of HCMC’s serviced apartment sector only started to occur in the mid-1990s, earlier than that of Hanoi. The Landmark was the first large, high-rise apartment building to be completed in the centre of HCMC in 1995. Comprising a mix of offices and apartments, The Landmark targets senior management foreign expatriates and provides a mixture of one, two and three-bedroom apartments.

Since then, the inventory of HCMC serviced apartment market has increased in tandem with the city’s economic progress. Numerous serviced apartment projects have since opened, providing a similar high standard of accommodation and services aimed at the expatriate employees of government consulates or senior management staff of foreign enterprises in HCMC.

Serviced Residences Market Overview Report Page 114 Prepared for DBS Trustee Ltd July 2010 H - 118

Listing of Major Serviced Apartment Developments in HCMC as of June 2010 Operation Serviced Apartment Total Units Grade Year District 1 Sedona Suites 1998 87 A Diamond Plaza 1999 42 A Nguyen Du Park Villas 2004 41 A The Landmark 1995 66 B Somerset HCMC 1996 165 B Saigon Sky Garden 1998 154 B Somerset Chancellor Court 1998 172 B Garden View Court 2000 76 B Norfolk Mansion 2001 126 B InterContinental Asiana Saigon 2009 260 A Lancaster 2007 90 B District 3 Sherwood Residence 2007 239 B Saigon Court 1998 56 B Indochine Park Tower 1998 55 B District 2 Riverside Apartments 1995 165 B Parkland Apartments 1996 109 B Binh Thanh District Saigon Domaine 1997 39 B Saigon View Residences 2005 93 B District 7 The Crescent 2009 297 B Waterfront 2004 132 B Source: Jones Lang LaSalle Hotels, Industry Sources

In 2009, the city welcomed the long awaited opening of the Kumho Asiana Plaza complex in District 1. The mixed use development comprising the 305-key InterContinental Asiana Saigon also offers a 260-unit serviced apartment component – InterContinental Asiana Saigon Residences which is also managed by InterContinental hotels. Other additions during the year include a Grade B apartment project, The Crescent, located in District 7 comprising 297 apartments. There was also a small 30 unit development, Cantavil Daewon Hoan Cau which opened in Binh Thanh District.

By geographical location, the city centre (Districts 1 and 3), has the highest concentration of serviced apartment developments. The locational advantage of city centre over other areas is evident with the number of serviced apartment units approximately twice the number located in the combined areas of District 2, 7 and Binh Thanh.

District 2 tends to be popular with the expatriate community and in particular those with families. The availability of entertainment, commercial as well as proximity to international and other foreign schools have been key factors for the popularity of District 2. However, villas form the main type of residential housing in this locality. There are two significant serviced apartment projects in District 2, namely Riverside Apartments and Parkland Apartments, both of a Grade B standard.

District 7 is also home to a large expatriate community, especially in Phu My Hung and the areas surrounding Phu My Hung. This locality is popular with Asian expatriates and a number of international schools can also be found here. However, the supply of serviced apartments in this district is limited. Examples include the Waterfront serviced apartment providing a total of 132 units, and the recently completed (in 2009) The Crescent with 297 units.

Serviced Residences Market Overview Report Page 115 Prepared for DBS Trustee Ltd July 2010 H - 119

The Binh Thanh district which is conveniently located close to the downtown central business district (CBD) offers several serviced apartment projects including the Saigon Domaine and Saigon View Residences. Both are Grade B projects and provide a total of 132 units.

Grade C serviced apartments are distributed across the city with a concentration in District 1, 3, 7 and Binh Thanh. These properties are locally managed and typically feature less than 30 apartments.

It has been estimated for the period 2010 and 2013, there will be approximately 3,000 additional units entering the market. These units will be provided by around 10 serviced apartment projects located throughout the city. At this stage, we are unable to identify the positioning or management of these proposed additions but it is likely that there will be an international serviced apartment or hotel operator involved in at least one project.

Demand

Serviced residences are becoming increasingly popular among business travellers, expatriates and their families in Vietnam, including HCMC. Serviced residences are perceived to provide greater value for money than hotels for longer stays, with the added benefit of kitchen and laundry facilities, larger space, privacy and the relaxing ambiance of a home.

HCMC’s serviced apartment industry also caters to short-term demand from tourists, although this is not a large market segment.

Expatriates

Similar to Hanoi, the demand for serviced apartments in HCMC has mirrored the economic growth of the city. As the economic hub for the country, the volume of visitors to the city, both business and leisure have grown over the years. The increase in foreign investments and influx of foreign residents and companies and the corresponding need for quality accommodation spurred the need for serviced apartments in the city.

While there are no official statistics on the number of expatriates in HCMC, with Foreign Direct Investments (FDI) in Vietnam and HCMC remaining strong, the number of expatriates working in the city is expected to rise.

According to latest figures from the General Statistics Office (GSO) of Vietnam, during 2009, HCMC successfully received 318 approved projects cumulating in registered capital of USD 984.4 million.

For the period from 1 January 2010 to 20 June 2010, GSO data indicate that HCMC attracted a total of 165 licensed FDI projects with a registered capital of USD 1,077 million, the highest number of projects amongst cities in Vietnam and close to 14% of overall registered capital in Vietnam.

The recently launched serviced apartments at the InterContinental Asiana Saigon Residences have attracted a significant amount of expatriates and in particular from Japan and South Korea. A percentage of the demand can be attributed to expatriates trading to higher quality accommodation as well as fresh demand arriving into the city.

International Tourists/Business Travellers

Serviced Residences Market Overview Report Page 116 Prepared for DBS Trustee Ltd July 2010 H - 120

period last year. By purpose of visit, visitors arriving for leisure were 1,595,200, representing an increase of 40.3%; for business: 502,000, up 44.6%; and visiting relatives: 288,900, an improvement of 2.9%.

According to HCMC Culture, Sports and Tourism Department, 1.5 million foreign tourists arrived in HCMC in the first six months of 2010. Of these, 300,000 people came for trade purposes.

With limited international standard hotel room stock in HCMC, serviced apartments provide international travellers, particularly business travellers, with an alternative accommodation option.

As the business capital of Vietnam and an important tourism hub, HCMC has seen increased demand for accommodation. Business travellers, in particular, are likely to seek accommodation in serviced apartments given proximity to business centres, larger rooms and longer requirement of stay. With a recovery in the global economies and in particular the Asian countries, visitor arrival numbers to HCMC is expected to rise over the coming years in line with the return of foreign investments to the country.

Performance Review

Like Hanoi, the serviced apartments market in HCMC has generally enjoyed healthy occupancy levels. The late 1990s prior to the country’s economic growth proved to be a challenging period for the sector with an influx of new supply and relatively weak demand. By 2000, there were encouraging signs that the local serviced apartment industry, though still very competitive, was picking up with serviced apartment owners/operators reporting better occupancy levels. For example, the average occupancy at the Saigon Sky Garden Serviced Apartments rose to over 85% in 2000, compared to 30-40% when the operations commenced in 1998.

Available statistics for 2010 indicates that occupancy levels in upper-tier serviced apartments in HCMC ranged from 72-89%, representing a slight softening in occupancies from the corresponding period in 2009, while average rentals have declined by around 8.6%.

Our research indicates that for the first half of 2010, occupancy levels for the serviced apartment market in HCMC based upon interviews with serviced apartment operator’s are generally between 70% to 85%. Occupancy rates reflect a decrease in some properties while others have maintained or experienced a small increase compared to same period in 2009. In contrast, average room rates have declined across all properties by varying degree typically ranging from - 4 % to -10%.

The indicative monthly rentals of serviced residences in HCMC, based on a grouping of several major serviced residences (The Landmark, Sedona Suites, Sherwood Residence, Saigon Domaine, Somerset Chancellor Court, Somerset Ho Chi Minh and the InterContinental Asiana Saigon Residences in June 2010 are provided in the following table:

Indicative Monthly Rentals* of HCMC Serviced Residences by Unit Type Apartment Type Unit Size (sq.m.) Rental Studio 36 – 50 US$1,500 – 2,400 1-Bedroom 52 – 92 US$2,000 – 3,500 2-Bedroom 80 – 157 US$2,300 – 5,000 3-Bedroom 110 – 240 US$3,100 – 7,000 4-Bedroom 180 – 357 US$3,900 – 5,000 * Rentals quoted during survey conducted in June 2010 Source: Jones Lang LaSalle Hotels, Industry Sources

Serviced Residences Market Overview Report Page 117 Prepared for DBS Trustee Ltd July 2010 H - 121

Internationally branded serviced apartments in Hanoi typically achieve a rate premium in comparison to unbranded or locally managed product, while occupancies are broadly similar. These properties also tend to have a lower vacancy rates as they have a higher percentage of longer term tenancies. Operational differences are limited, although the sales and marketing functions in the internationally managed properties are perceived to be more sophisticated.

23.3. Serviced Residences Trends

Some general market trends include:

The concept of serviced residences, first introduced in the mid-1990s, has gained popularity with the expatriate community over the last ten years. Apart from the provision of a range of services such as daily housekeeping, serviced residences also provide added security not found in local Vietnamese housing which is typically located in small lanes not accessible by cars.

International serviced apartment operators only started to enter HCMC in the late-1990s. Today, there are several international apartment operators in HCMC including The Ascott Limited’s two “Somerset-branded” properties and a 87 unit Sedona Suites. In anticipation of further growth in demand, there is the potential for the market to accommodate more operators/brands. This would further raise the standard of serviced apartment accommodation and broaden the product offering in HCMC.

District 1 remains the most popular location for serviced apartments, although District 2 and District 7 are witnessing development of serviced apartments over the next 3 years.

Serviced apartments are increasingly competing with hotels for short stay guests.

Given the large development of apartments for sale, we would expect a more attractive apartment leasing market (a buy to let scenario) to develop and provide an alternative housing option for expatriates.

The serviced apartment industry is facing increasing competition from the residential leasing market where the quality of the product offering has improved in recent years.

The financial crisis has introduced tighter housing allowances for expatriates, which has caused tenants to either move away from serviced apartment accommodations or to relocate from District 1 to other suburban locations (such as District 2, 3 and 7).

Similar to global trends, there has been an increase in the number of younger expatriates on short and long-term assignments who typically provide strong demand for serviced apartments.

23.4. Market Outlook

Our outlook for the serviced residence sector in HCMC remains encouraging as the general business environment adopts an upward recovery trend. The recovery will undoubtedly bring about a return of business travellers to the city as well as inflow of foreign investments. We recognise, however, that some challenges remain including a large increase in supply, rising competition from the residential leasing market and at times, intermittent electricity supply.

Serviced Residences Market Overview Report Page 118 Prepared for DBS Trustee Ltd July 2010 H - 122

Key factors supporting our outlook include:

Economic and business sentiment remains positive, as evidenced by strong forecast GDP growth rate for HCMC and 2009 GDP growth for the city of 8.0%.

Expatriate demand remains healthy. We also expect there to be an increase in business travel to the city in view of increases in FDI activities and with more companies exploring investment opportunities in HCMC and its surroundings.

Although forecast serviced apartment supply is substantial, there is very limited new supply which is to be branded.

Increase in supply over the next few years will increase competition, and widen the service offering.

Given the global financial crisis and difficulty in property/ development finance in Vietnam, we would expect to see the pace of new developments slow down.

A realisation from local developers of the advantages of international branding and management. We anticipate more branded product will enter the market, particularly as competition increases.

HCMC remains the primary business and tourist destination for Vietnam.

Accordingly, we remain positive that HCMC’s Grade A and branded serviced residences industry will enjoy stable occupancy levels, although some softening in rates may be experienced over the next couple of years. Grade B and C and non branded serviced apartments will likely witness that both occupancies and rates will come under pressure given the amount of new supply forecast to enter the market.

Serviced Residences Market Overview Report Page 119 Prepared for DBS Trustee Ltd July 2010 H - 123

24.0 SINGAPORE SERVICED RESIDENCES MARKET OVERVIEW

24.1. Singapore Economic Overview

The economic growth of Singapore has been strong between 2003 and 2007, with GDP recording a CAAG rate of 8.9% over this period. In 2008, as the global financial crisis triggered chaos to world economies, Singapore’s economy declined 5.3 percentage points year-on-year to 2.5% amid deteriorating financial conditions.

According to IHS Global Insight, the economy slowed down sharply in the first half of 2009. The island republic experienced the adverse effects of the global financial crisis as falling external demand severely affected domestic manufacturing output. The fall off in global trade also compounded the deterioration in Singapore’s economy.

However, a strong rebound experienced in the second half of 2009 eased the impact and resulted in a marginal year-on-year decline of -2.0% in GDP for 2009. This is a significant improvement to the April 2009 expectations of the Ministry of Trade and Industry Singapore which forecasted a contraction of up to 9.0% in 2009.

The overall performance of the Singapore economy reflect several factors including a growth spike in the biomedical manufacturing sector which had a major contribution to the improved performance in the second half of 2009.

As at July 2010, Singapore’s Ministry of Trade and Industry announced new forecasts for GDP growth in 2010. Singapore’s economy is expected to grow by 13% to 15%, up from an earlier forecast of 7% to 9%. The upward change in forecasts were reflective of the revised GDP growth of 45.9% in the first quarter of 2010, a stronger than expected GDP performance of 26.0% in the second quarter over the first quarter and an anticipated moderate growth rate for the second half of 2010. The positive new forecasts are reflective of the upward adjustment of the growth rate for the manufacturing sector, in particular the biomedical manufacturing sector.

Singapore is renowned for its strong economic fundamentals and prudent macroeconomic policies. The city-state is the quintessential open market when it comes to free trade with low, if not zero, import tariffs. A small country with a population of 4.99 million (according to latest statistics by the Department of Statistics as at 2009) and no natural resources, Singapore has made free-trade agreements a cornerstone of its economic policy, protecting its position as the region’s trade and investment hub.

Singapore Economics Indicators 2007 2008 2009 2010F 2011F 2012F 2013F 2014F Real GDP (% change) 7.8 2.5 -2.0 9.0 5.0 4.7 4.7 4.7 Nominal GDP (USD billion) 167.0 188.2 177.1 209.4 232.8 252.8 270.7 288.0 Nominal GDP Per Capita (USD) 37,232 40,783 37,396 43,301 47,407 50,948 54,154 57,271 Consumer Price Index (% change) 2.1 6.6 0.6 2.4 2.2 2.0 2.0 2.0 Population (million) 4.48 4.62 4.74 4.84 4.91 4.96 5.00 5.03 F: Forecasts Source: IHS Global Insight

Serviced Residences Market Overview Report Page 120 Prepared for DBS Trustee Ltd July 2010 H - 124

24.2. Serviced Apartments Market & Performance Review

Definition of Serviced Apartment

According to a circular issued by the Urban Redevelopment Authority (URA) on 12 November 1998, a serviced apartment in Singapore may consist of a block or blocks of flats which:

a. Comprise self-contained apartments with kitchen facilities b. Rented out for lodging for a minimum seven days or longer where the rates are calculated on a periodic basis; c. Include support services such as concierge, housekeeping and/or laundry. For larger serviced apartment developments (with total gross floor area (GFA) greater than 14,000 square metres) restaurants and bar/ lounge facilities are permitted subject to a maximum of 0.3% of GFA; and d. Developed and/or managed under a single ownership structure, i.e. not strata titled.

While the serviced apartment industry has recently requested the authorities to relax the minimum seven day rule, we understand nothing has been confirmed at the time of writing.

Supply

The existing stock of serviced apartments in Singapore as at July 2010 stands at approximately 4,100 serviced apartment units. Serviced apartment developments are either stand-alone properties or part of a hotel or mixed-use development. Available unit configurations range from studio to penthouses, with one- and two-bedroom units being the most common.

The bulk of serviced apartment inventory is relatively matured with most developments completed in the 1990s. The majority or approximately 73% of the units are concentrated in the prime residential districts of 9, 10 and 11. The remaining 27% are located on the city fringe and in suburban areas.

The major serviced apartment owners/operators in the Singapore market include The Ascott Limited, Frasers Hospitality and Far East Hospitality. While some hotel operators also provide serviced apartment offerings, for instance, Shangri-La Apartments and the Parkroyal Apartments (formerly known as the Plaza Pacific Service Apartments), their market share is relatively small.

Unlike the significant supply additions witnessed in the 1990s, the current supply situation remains relatively tight, with the most recent additions being the opening of the 146-unit Ascott Singapore Raffles Place, the 154-unit Citadines Singapore Mount Sophia and the 126-unit Pan Pacific Apartments on Somerset Road.

Ascott Singapore Raffles Place replaced the Ascott Singapore on Orchard Road which ceased operations in December 2006 to make way for Scotts Square, a 43-storey luxury residential tower offering 338 apartments and a retail podium. This followed the purchase of The Ascott Singapore and Scotts Shopping Centre by Wheelock Properties (Singapore), formerly known as Marco Polo Developments, in 2004.

The 126-unit Pan Pacific Apartments, which opened in 2008, offer “live-and-work” units that combine an office and a serviced apartment, similar to the small-office, home-office (SOHO) concept except that the units also come with services like housekeeping and laundry.

Serviced Residences Market Overview Report Page 121 Prepared for DBS Trustee Ltd July 2010 H - 125

The 154-unit Citadines Singapore Mount Sophia serviced apartment which forms part of Wilkie Edge, an integrated mixed use lifestyle development at the former Selegie Complex site, opened in 2009 and is the first Citadines branded product in Singapore.

Examples of Major Serviced Apartments in Singapore Project Name Location No. of Units Ascott Singapore Raffles Place 2 Finlayson Green 146 Somerset Compass 2 Mount Elizabeth Link 72 Somerset Grand Cairnhill 15 Cairnhill Road 146 Somerset Orchard 160 Orchard Rd 88 Somerset Liang Court 177B River Valley Rd 197 Somerset Bencoolen 51 Bencoolen Street 107 Citadines Singapore Mount Sophia 8 Wilkie Road 154

Project Name Location No. of Units Pan Pacific Apartments 96 Somerset Road 126 Fraser Place 11 Unity Street 161 Fraser Suites 491A River Valley Road 251 Fraser Fusionpolis 3 Fusionpolis Way 50 Park Avenue Suites 81 Clemenceau Avenue 150 Treetops Executive Apartments 7 Orange Grove Road 220 Great World Serviced Apartments 2 Kim Seng Walk 304 Source: Jones Lang LaSalle Hotels and serviced apartment website

Future Supply

New serviced apartment supply in the next few years is expected to be limited. We understand United Engineers Limited is developing the 271-unit Park Avenue Suites at Rochester and the Park Avenue Apartments at Changi. The Park Avenue Suites will be located at the mixed-use hotel-serviced-apartment-residential-SOHO project in One North while the Park Avenue Apartments will also be located at another mixed used development which will potentially comprise hotel and serviced apartment components. The “Park Avenue” brand has a presence in Singapore with 150 serviced suites on Clemenceau Avenue.

Demand

The main demand generator for serviced apartments in Singapore is driven by expatriates or business travellers looking for an extended stay. All serviced apartments in Singapore with the exception of Ascott Singapore Raffles Place are required to rent out on a minimum seven day period. Ascott Singapore Raffles Place has a hotel licence hence is able to cater to transient daily lettings.

Typically, most business travellers take up a serviced apartment lease of between one to six months. There are also serviced apartment units which are leased for a longer term of one to three years. Many incoming expatriates on two- to three-year assignments would typically stay in serviced apartments upon arrival for at least a month while they source for permanent accommodation.

Serviced Residences Market Overview Report Page 122 Prepared for DBS Trustee Ltd July 2010 H - 126

Expatriates/Non-Residents

Singapore’s strong economic fundamentals and strategic location have brought a steady flow of foreign investment into the country. As a result, many multinational corporations (MNCs) have set up their Asia Pacific headquarters in Singapore creating increased demand in the corporate housing sector.

While there are no official figures on the total number of expatriates working in Singapore, research of the population trend over the past decade indicate that non-residents constitute approximately 25% of the country’s total population (although a significant proportion of the non-Singaporean residents community comprise unskilled labour). Based on latest official data from the Department of Statistics (DOS) as at 2009, there are currently 1.25 million non- Singaporeans in Singapore out of a total population of 4.99 million.

Non-Residents in Singapore

30% 25%

25% 20% 15% 20% 10% 15% 5% 10% 0% (%) AnnualGrowth 5% Proportion of Non-Residents (%) Non-Residents of Proportion -5%

0% -10% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Department of Statistics (DOS) Proportion of Non-Residents Annual Growth

Business Travellers

Globalisation has increased the mobility of the workforce and increasingly corporations are sending staff on short to medium-term overseas assignment, which can range from a week to several months. Serviced apartments offer a good alternative to hotels especially for those who only require accommodation for a few months.

According to the Singapore Tourism Board’s (STB’s) latest Overseas Visitors Survey in 2008, approximately 30% of visitors to Singapore were business travellers.

Performance Review

Depending on the unit size, configuration and rental package, serviced apartment rentals can vary quite significantly. In general, we understand serviced apartment operators prefer to vary their rental discount in response to prevailing market conditions rather than adjust their published rates. Rental discounts of between 10 to 20% are not uncommon however this can increase to between 30 to 35% when market conditions are soft as they were in 2009.

In the second half of 2008 and through most of 2009 the impact of the global financial crisis on the hospitality industry saw a severe contraction of international corporate travel. This resulted in a market wide assault on rates where competing serviced apartments were forced to drop rates to

Serviced Residences Market Overview Report Page 123 Prepared for DBS Trustee Ltd July 2010 H - 127

secure business. As a result, while occupancy levels remained fairly constant in the two years at approximately 78%, apartment rental rates fell by 20% from over SGD 300 per night in 2008 to SGD 240 per night in 2009.

Published Monthly Rentals of Serviced Apartments by Unit Type Apartment Type Prime Districts Other Districts Studio SGD 7,800 – 11,000 SGD 6,200 – 8,000 1-Bedroom SGD 7,800 – 14,000 SGD 5,500 – 10,500 2-Bedroom SGD 8,800 – 15,500 SGD 5,800 – 13,400 3-Bedroom SGD 11,300 – 19,000 SGD 6,500 – 11,000 4-Bedroom SGD 22,000 - Penthouse SGD 14,000 – 28,000 SGD 15,000 Source: Jones Lang LaSalle Hotels, Industry Sources, June 2010

24.3. Serviced Apartments Trends

Demand from Expatriates/Foreigners

As a result of an increasing level of consolidation activities by many Multi National Corporations (MNCs), the market has seen a rise in demand from relocating expatriates, particularly younger singles or married couples in their mid-20s and mid-30s with no children. In addition, employment contracts have become more flexible and shorter ranging from six months to a year further increasing demand for serviced apartments. Typically, the minimum rental period for apartments such as condominium units is one year, hence serviced apartments stand to benefit from the shorter employment contracts.

We have also seen demand growth from overseas staff on short term project assignments to Singapore. This group of travellers would typically stay in serviced apartments during the length of their assignment.

The profile of expatriates in Singapore is also changing. There are an increasing number of Indian and Chinese expatriates working in Singapore. The Bureau of East Asian and Public Affairs indicate that currently there are an estimated 1,500 Indian companies in Singapore (most registered in the last five years) and around 1,500 Chinese companies. We expect this trend to continue.

Conversely, some MNCs have introduced programmes to reduce and localise the expatriate workforce. This is in line with global cost management measures and directives to streamline organisational structures in order to enhance operational efficiency following the impact of the financial crisis in 2008. These measures will have some degree of impact on demand for long- term rentals of serviced apartments.

Demand from Singaporeans

Though a small segment, we understand that more Singaporeans are staying in serviced apartments as a temporary accommodation while renovating their homes. Overseas based Singaporeans on home visits are also utilising serviced apartment accommodation and their stay would normally extend beyond a one week period.

Serviced Residences Market Overview Report Page 124 Prepared for DBS Trustee Ltd July 2010 H - 128

24.4. Market Outlook

Our outlook for Singapore’s serviced apartments sector remains positive, notwithstanding challenges including competition from hotels and the private residential leasing market.

Key factors supporting our outlook include:

Economic and business sentiment for Singapore remains positive. In 2010, Singapore’s GDP is expected to grow by 13% to 15%, up from an earlier forecast of 7% to 9%. The Government’s continued efforts to sign more Free Trade Agreements (FTAs) will lead to greater business, trade and investment inflows into Singapore. There are also plans to develop the services sector as Singapore’s second engine of growth to complement the main manufacturing sector. Niche areas will include healthcare and education, in addition to the financial, tourism and info-communications industry. These measures, which are supplemented by business-friendly policies and tax incentives, would help to ensure Singapore’s medium to longer-term competitiveness in the region.

The development of the new Business and Financial Centre (BFC) located at the New Downtown @ Marina Bay will enhance Singapore’s positioning as a leading business and financial hub. The extended Central Business Districts will be developed into a vibrant “live-work-play” location and will be home to Singapore’s second Integrated Resort, Marina Bay Sands which opened in June 2010.

The Economic Development Board (EDB) will continue to attract and encourage MNCs to base their international or regional headquarters in Singapore. The Singapore Government is also keen to attract more foreign talents to the country, as one of its strategies for continued economic growth.

The island republic has a very high standard of living for expatriates with Singapore consistently voted as one of the best places to live, work and play in Asia.

New serviced apartment supply will remain relatively constrained with limited development currently planned. The known additions which are associated with a brand will help raise the standard of serviced apartment accommodation in Singapore. The new supply will also widen the product offering to expatriates and those seeking short to medium-term accommodation in the city. In the longer term, this may also place considerable pressure on other unbranded serviced apartment products which do not have access to global distribution systems and offer a less developed product and limited services.

With demand prospects improving in light of the recovery from the financial crisis, coupled with the limited supply, we remain confident that the serviced apartment sector in Singapore will continue to enjoy healthy occupancy levels with potential for further rate growth over the next couple of years.

Serviced Residences Market Overview Report Page 125 Prepared for DBS Trustee Ltd July 2010 H - 129

25.0 JAKARTA SERVICED RESIDENCES MARKET OVERVIEW

25.1. Jakarta Economic Overview

Gross Regional Domestic Product (GRDP)

According to IHS Global Insight forecasts, Indonesia’s GDP is expected to grow at an average of 5.7% per annum from 2010 to 2014. This will be dependent on several factors including the continual political and economic reforms which the new cabinet, led by President Yudhoyono, undertakes to strengthen the economy, local demand as well as security concerns.

Indonesia GDP and Jakarta GDRP Growth 2006 to 2009

7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2006 2007 2008 2009

Source: Central Bureau of Statistics (BPS) and Jakarta GDRP Growth IHS Global Insight Indonesia GDP growth

The major contributors to GDRP in 2008 were financial ownership and business services (29.1%), trade, hotels and restaurant (21.7%) and manufacturing industry (16.5%). In total, these three industries accounted for 67.5% of Jakarta’s GDRP in 2008.

Foreign Direct Investment (FDI)

In 2009, Indonesia experienced a 32.4% year-on-year decrease in FDI due to the impact of the global financial crisis which put a constraint on inward foreign investments. In 2010, IHS Global Insight forecasts that foreign direct investments will increase by 21.7% to USD 2.8 billion backed by the steady recovery in the global economic conditions and continual reforms to create an improved business environment. GDP growth is also expected to increase to 5.7% in 2010, a marginal increase from 4.5% in 2009 due to the anticipated increase in consumer spending and more direct foreign investments.

Indonesia / Jakarta Economics Indicators 2007 2008 2009 2010F 2011F 2012F 2013F 2014F Jakarta GRDP Growth 6.4% 6.2% N.A N.A N.A N.A N.A N.A Indonesia Real GDP Growth 6.3% 6.1% 4.5% 5.7% 5.6% 5.9% 5.8% 5.7% Indonesia Foreign Direct Investment (USD billion) 2.3 3.4 2.3 2.8 3.6 3.8 4.1 4.4 Source: Central Statistics Bureau (BPS), IHS Global Insight Note: NA – Not Available

Serviced Residences Market Overview Report Page 126 Prepared for DBS Trustee Ltd July 2010 H - 130

25.2. Serviced Apartment Market Overview

Definition of Serviced Apartment

There is currently no formal definition of a serviced apartment in Indonesia but in general, we understand that majority of the serviced apartments in Indonesia have the following criteria:

Rental rates are inclusive of electricity and water charges; Flexibility in rental terms: available for daily, weekly, monthly and yearly leases; Ability to provide customised services such as housekeeping and linen; and Some hotel services including a 24-hour reception and restaurants

Supply

The existing supply of serviced apartments are mostly located in the Central Business District (CBD) while some are situated in South Jakarta which is a popular residential area for expatriates as there are several oil and mining companies and international schools situated in that area. In addition to serviced apartment operators such as Ascott and Park Avenue, some hotel operators such as Marriott International and Shangri-la have also ventured into operating serviced apartments in recent years which has diversified the serviced apartment market supply. The following table shows examples of major serviced apartment supply in Jakarta.

Examples of Major Serviced Apartments in Jakarta Project Name Location No. of Units

Ascott Jakarta Kebon Kacang, CBD 198 Somerset Berlian Permata Hijau, off CBD 152 Somerset Grand Citra Satrio, CBD 203 The Mayflower Jakarta – Marriott Executive Apartments Sudirman, CBD 96 Oakwood Premier Cozmo Jakarta Mega Kuningan, CBD 204 Park Avenue Setiabudi Setiabudi, CBD 87 Plaza Residence Sudirman, CBD 259 Batavia Apartments Bendungan Hilir, CBD 113 Shangri-la Residences Jakarta Off Sudirman, CBD 168 Ritz Carlton Residences Sudirman, CBD 139 Aryaduta Suites Off Semanggi, CBD 272 The Residences (Former Hilton Residences) Sudirman, CBD 256 The Residences @ Puri Casablanca Casablanca, CBD 494

Currently, there are approximately 3,200 – 3,700 serviced apartments units in Jakarta. Almost half of the serviced apartment stock in Jakarta is more than ten years old. New additions to the market in recent years include the 139-unit Ritz Carlton, the 168-unit Shangri-la Residences and 96-unit The Mayflower Jakarta Marriot Executive Apartments.

Majority of the properties are equipped with fixtures, furniture, washers and dryers, as well as fully equipped kitchens including stoves, coffee makers, microwave ovens and utensils. Apartments which are managed by hotel operators such as Shangri-La, Marriott International and Aston as well as Ascott, also offer full housekeeping, linen and room services.

Future Supply

There are currently 693 serviced apartment units under construction or planned to open in Jakarta from 2010 to 2012. This will represent a 21% increase in supply.

Serviced Residences Market Overview Report Page 127 Prepared for DBS Trustee Ltd July 2010 H - 131

We note that the future pipeline of serviced apartments consists of international serviced apartment operators – The Ascott Limited (Ascott) and Frasers Hospitality. Frasers Suites Jakarta will be Frasers Hospitality’s first property in Jakarta while Ascott will have a total of seven properties in Jakarta by 2012.

Demand

There is limited available information on demand trends in the serviced apartment sector. Hence, the following analysis is based on the observed trends and characteristics of the overall apartment market in Jakarta.

The demand for rental apartments is closely correlated to the number of expatriates residing in Jakarta. Expatriates might prefer to stay at serviced apartments than purchasing an apartment as they are able to adjust their stay with the contracted work. Besides, buying an apartment in Indonesia involves complicated procedures due to property ownership regulations in Indonesia. Despite demand for more flexible rental terms, serviced apartments in Jakarta are still predominantly rented for long-term stays of more than six months. However, some serviced apartments located in Jakarta’s CBD such as the Ascott, the Oakwood, the Aryaduta Suites, and the Plaza Residences, have started to cater for shorter term stays at higher asking rates.

In 2008, the global financial crisis affected corporate activity in the region which resulted in a 25.4% decrease in expatriates in Jakarta. We note that some expatriates during their initial months of appointments in Jakarta are on a business visa and therefore not recorded in the expatriate population.

Annual Expatriate Population in Jakarta 2001 - 2008 60,000

50,000

40,000

30,000

20,000 No. of Expatriates of No.

10,000

0 2001 2002 2003 2004 2005 2006 2007 2008

Source: Ministry of Workforce, 2010

We understand that the following trends exist in the serviced apartment market for expatriates:

Majority of expatriates are on short-term assignments and projects which last for less than a year. These expatriates are generally from industries such as telecommunication, information technology, and manufacturing sectors. We note that expatriates from oil and gas and finance sectors typically have longer assignments.

Although the global economy is gradually picking up pace, international firms are more prudent in cost management and have imposed tighter budgets on expatriates packages. Hence, majority of the expatriates sent to Indonesia are either single or married with no kids.

Serviced Residences Market Overview Report Page 128 Prepared for DBS Trustee Ltd July 2010 H - 132

Expatriates from the Asia Pacific region such as Korea, Taiwan, China and Australia have increased in the past year. We understand that Asian expatriates from small to mid-sized corporations tend to be more flexible and are willing to share apartment units with their colleagues.

Compensation packages for Asian expatriates from manufacturing companies and embassies tend to include accommodation budget resulting in increased price sensitivity for this segment.

Expatriates who are sent to Jakarta for a longer term or permanently tend to stay at serviced apartments temporarily while sourcing for permanent residences. These expatriates typically have a higher budget for accommodation and prefer staying at landed properties in the well- established mid to high end residential areas of Kemang or Pondok Indah.

With the gradual economic recovery, we expect the expatriate population to increase in the short term. Hence, developers are encouraged to develop purpose-built serviced apartments. We have noted that some developments are part of strata-titled apartment projects pre-sold through ‘off the plan’ marketing thus enabling projects to proceed in a high interest rate environment. Relatively recent completed projects with some strata-titled components include Oakwood Premier Cosmo and Mayflower Marriott Executive Apartments.

Performance Review

Our preliminary survey of five serviced apartment projects in Jakarta indicates that room production had a year-on-year increase of 2 percentage points to 68% in 2009. Likewise, there was little movement in terms of Average Daily Rate (ADR), which increased marginally from approximately USD 82 in 2008 to USD 83 in 2009. The stagnancy in rental rates reflect the increased competition by independently managed strata-titled apartments in greater Jakarta’s CBD which generally offer competitive rents. Anecdotal evidence has suggested that a number of tenants from key serviced apartment projects in Jakarta’s CBD have been moved to these strata-titled apartment projects.

Published Monthly Rentals of Serviced Apartments by Unit Type Apartment Type Size (square metres) Rentals (USD) 1-Bedroom 38 – 118 1,400 – 5890 2-Bedroom 63 – 257 2,100 – 6,670 3-Bedroom 110 - 193 3,500 – 10,800 Source: Jones Lang LaSalle Hotels, Industry Sources, July 2010

25.3. Serviced Residences Trends

Serviced apartments are usually located close to popular work centres for multinational corporations in various sectors such as oil, gas and mining, computer and information technologies, manufacturing and finance for convenience. In recent years, there has been a gradual shift of oil and gas companies to move to newer office parks in South Jakarta which has resulted in improved hotel performance (particularly those with some large guestrooms, for instance Kristal Hotel) in this area and an increased demand for strata-titled projects in south Jakarta for example the Kemang Village, the Hamptons Park, the Essence and Paku Buwono Residence. The presence of many international schools such as the Jakarta International School and the British International School has also contributed to the demand for apartments in the area, particularly from expatriates with families.

From 2010 to 2012 we expect Jakarta’s CBD to continue to be dominated by upper to luxury strata-titled apartment projects that include the 88-unit Keraton, 232-Sudirman Place Terrace,

Serviced Residences Market Overview Report Page 129 Prepared for DBS Trustee Ltd July 2010 H - 133

400-unit Ciputra World, and 150-unit Grove. We also expect some middle to upper middle class strata-titled apartment projects which includes the 550-unit Ambassade Apartments, 500- Thamrin Executive, 400-unit Cosmo Terrace, and 900-unit Kuningan City Apartments. Some of these projects will be part of the mixed-used developments which may offer selected services. Therefore, the future pipeline of strata-titled projects might pose be competitive to existing and future serviced apartment projects.

We are also aware that some serviced apartment projects in Jakarta’s CBD have lost some of their long staying tenants to new recently completed projects in the city fringe. Major projects under construction in Jakarta’s CBD will further intensify competition in the serviced apartment market when they are completed.

25.4. Market Outlook

Taking into consideration the following factors, we remain optimistic about the outlook for Jakarta’s serviced apartment market:

In the first quarter of 2010, according to IHS Global Insight, Real GDP expanded by 5.7% year-on-year, estimated at half the growth rate as compared to other Asian economies as there is less of a rebound due to the relatively smaller impact of the global financial downturn on Indonesia. Moving forward, GDP is expected to grow at 5.7% in 2010 according to IHS Global Insight. GDRP of Jakarta generally is in line with the national figure; therefore, the economic growth will eventually promote foreign direct investment and demand for serviced apartments in Jakarta.

President Yudhoyono and his second cabinet will continue to push for reforms with regards to the economy, civilian service and infrastructure with the successful implementation of the economic and political reforms during the first term. The political situation is likely to remain stable in the short to mid term which is crucial in attracting local and foreign investors and generating corporate demand for the city of Jakarta.

The recent spate of terrorist activities in 2009, where there was a bombing recurrence at the JW Marriott Jakarta and a new bombing incident at the Ritz Carlton Jakarta has once again shaken the confidence of visitors to Jakarta on security issues. This was the first major terrorist attack in Jakarta in four years. However, the subsequent arrest of several terrorist militants following the bombing was a major confidence boost for Indonesia and Jakarta with regards to security. Moving forward, while terrorism remains very much a threat in Jakarta, improvements in counter terrorism capabilities over the recent years will ease security concerns. Hotels, offices and shopping centres have also stepped up on security by conducting compulsory security checks on all vehicles and people who enter the buildings.

Inflationary rates which were at the trough, recording 2 to 3% from July to October 2009, have increased since the end of 2009. In year-to-date June 2010, year-on-year inflation was registered at 4.0% and most recently in June 2010, inflation reached 5.0%. However, this is still lower than previous inflationary rates experienced in Indonesia. IHS Global Insight predicts that the first interest rate hike will only occur in the fourth quarter of 2010 and any monetary tightening will be mild, thus promoting foreign direct investments.

Despite the improvement in Indonesia’s investment climate and economy, the Jakarta serviced apartment market will also continue to face challenges, including:

There will be increased competition from both new serviced apartment projects in the pipeline and the development of condominiums (strata-titled apartment) over the next few years. This may inhibit rental growth in serviced apartments over the short to medium term.

Serviced Residences Market Overview Report Page 130 Prepared for DBS Trustee Ltd July 2010 H - 134

As more office parks gradually shift towards southern Jakarta with the continued relocation of oil and gas corporations there, demand from this sector may shift to projects located within that area, reducing demand for serviced apartments in Jakarta’s CBD.

Serviced Residences Market Overview Report Page 131 Prepared for DBS Trustee Ltd July 2010 H - 135 This page has been intentionally left blank. APPENDIX I

PROCEDURES FOR ACCEPTANCE OF, PAYMENT AND EXCESS APPLICATION FOR NEW UNITS UNDER THE PREFERENTIAL OFFERING BY SINGAPORE REGISTERED UNITHOLDERS Singapore Registered Unitholders are entitled to receive this Offer Information Statement and the ARE which forms part of this Offer Information Statement. The Preferential Offering is governed by the terms and conditions of this Offer Information Statement and instructions in the ARE. The ARE is not renounceable or transferable and is for use only by Singapore Registered Unitholders. The ARE and this Offer Information Statement may not be used for the purpose of, and do not constitute, an offer or invitation or solicitation in any jurisdiction or in any circumstances in which such an offer or invitation or solicitation is unlawful or not authorised, or to any person to whom it is unlawful to make such an offer or invitation or solicitation. The ARE and this Offer Information Statement have not been registered under the applicable securities laws of any overseas jurisdiction and the Preferential Offering New Units are not offered to any person who is not a Singapore Registered Unitholder. The Manager or any person on its behalf reserves the right to reject any acceptance of the provisional allotment of the Preferential Offering New Units and/or application for Excess New Units where they believe, or have reason to believe, that such acceptance and/or application may violate the applicable laws of any jurisdiction. A Singapore Registered Unitholder accepting his provisional allotment of Preferential Offering New Units and if applicable, applying for the Excess New Units (the “Applicant”) should consider the implications of the provisions of the ARE and this Offer Information Statement before he accepts all or part of his provisional allotment applies for Excess New Units. By completing and delivering the ARE and in consideration of the Manager issuing and distributing the ARE to the Applicant, he agrees that: (a) his acceptance and (if applicable) application is irrevocable; (b) his remittance will be honoured on first presentation and that any moneys returnable may be held pending clearance of his payment and will not bear interest or enjoy any share of revenue or other benefit arising therefrom; (c) the contract arising from his acceptance and (if applicable) application pursuant to the ARE shall be governed by and construed in accordance with Singapore law and that he irrevocably submits to the non-exclusive jurisdiction of the Singapore courts; (d) the Manager or any person on its behalf shall be under no obligation to account to him or any other person for any interest or share of revenue or other benefit accruing on or arising from or in connection with any subscription moneys; and (e) in the event his acceptance and (if applicable) application is invalid, presentation of his remittance for payment by or on behalf of the Manager shall not constitute, or be construed as, an affirmation of such invalid acceptance and (if applicable) application. The number of Preferential Offering New Units provisionally allotted to Singapore Registered Unitholders under the Preferential Offering is indicated in the ARE (fractions of a New Unit having been disregarded) and includes additional Preferential Offering New Units allotted to Singapore Registered Unitholders (where applicable) to enable them to obtain aggregate unitholdings in integral multiples of 1,000 Units after subscription for the whole of their provisional allotment of New Units under the Preferential Offering. (See the section titled “Equity Fund Raising — The Preferential Offering” of this Offer Information Statement for further details.) For the avoidance of doubt, such additional Units are included in the provisional allotment of investors who have purchased Units under the Central Provident Fund Investment Scheme or the Supplementary Retirement Scheme (where applicable). The provisional allotment of investors who hold Units through nominee companies include such additional New Units allotted to enable the level of the aggregate Units held in the account of such nominee companies with CDP to be in integral multiples of 1,000 Units after subscription for the whole of their provisional allotment of New Units under the Preferential Offering. As such, investors whose Units are held through such nominee companies may not enjoy the benefit of such additional New Units on an individual level. Singapore Registered Unitholders

I-1 may accept their provisional allotment of Preferential Offering New Units in whole or in part and apply for Excess New Units. The Securities Accounts of Singapore Registered Unitholders have been credited by CDP with the provisional allotment of New Units as indicated in their ARE. Instructions for the acceptance of, payment for the Preferential Offering New Units and application for Excess New Units if applicable, are set out in this Offer Information Statement and the ARE. CPFIS account holders who wish to accept their provisional allotment of New Units under the Preferential Offering and if applicable, apply for Excess New Units, will need to: (a) instruct the relevant approved banks where such CPFIS account holder holds their CPF Investment Account to subscribe for the Preferential Offering New Units and if applicable, apply for Excess New Units, on their behalf in accordance with this Offer Information Statement; and (b) make sure that they have sufficient funds in their CPF Investment Accounts or CPF Ordinary Account to pay for the number of New Units (including, if applicable, the Excess New Units) for which they intend to subscribe. CPFIS account holders need not instruct CPF Board to transfer their CPF Funds from their CPF Ordinary Account to their CPF Investment Account. If the balance in the CPFIS account holders’ CPF Investment Account is insufficient and they have sufficient investible CPF Funds in their CPF Ordinary Account, your Agent Bank will automatically request for the balance of the required amount from their CPF Ordinary Account to their CPF Investment Account. SRS account holders who wish to accept their provisional allotment of Preferential Offering New Units and if applicable, apply for Excess New Units, will need to: (a) instruct the relevant approved banks where such SRS account holder holds their SRS accounts to subscribe for New Units and if applicable, apply for Excess New Units, on their behalf in accordance with this Offer Information Statement; and (b) make sure that they have sufficient funds in their SRS accounts to pay for the number of New Units (including, if applicable, the Excess New Units) for which they intend to subscribe. If an SRS account holder instructs the relevant bank where he holds his SRS account to subscribe for New Units on his behalf and he does not have sufficient funds in his SRS account to pay for the number of New Units which he intends to subscribe, his acceptance will be rejected. If a Singapore Registered Unitholder wishes to accept his provisional allotment of New Units specified in his ARE in full or in part and if applicable, apply for Excess New Units, he may do so through CDP by completing and submitting the relevant portion of the ARE or by way of an electronic acceptance through any ATM of the Participating Banks (“Electronic Acceptance”). A Singapore Registered Unitholder should ensure that the ARE is accurately and correctly completed, failing which the acceptance of his provisional allotment and if applicable, application for Excess New Units under the Preferential Offering may be rejected. Acceptances accompanied by remittances improperly drawn may also be rejected. A list of the Participating Banks is set out in Appendix K of this Offer Information Statement.

(i) Acceptance/Application through CDP To accept the provisional allotment of New Units and if applicable, apply for Excess New Units, specified in the ARE through CDP, the duly completed ARE must be accompanied by A SINGLE REMITTANCE for the full amount payable for the relevant number of New Units (including if applicable, the Excess New Units,) accepted, and submitted by hand to THE CENTRAL DEPOSITORY (PTE) LIMITED at 4 SHENTON WAY, #02-01 SGX CENTRE 2, SINGAPORE 068807 or by post in the self-addressed envelope provided, at the Singapore Registered Unitholder’s own risk, to THE CENTRAL DEPOSITORY (PTE) LIMITED, ROBINSON ROAD, P.O. BOX 1597, SINGAPORE 903147 so as to arrive not later than 5:00 p.m. on 30 September 2010. The payment must be made in Singapore currency in the form of a Cashier’s Order or Banker’s Draft drawn on a bank in Singapore and made payable to “CDP — ART PREFERENTIAL OFFER ACCOUNT” and crossed “NOT NEGOTIABLE, A/C PAYEE ONLY” with the name and Securities Account number of the Singapore Registered Unitholder clearly written on the reverse side. No combined cashier’s order or banker’s draft for different Securities Accounts or other form of payment (including the use of a postal order or money order issued by a post office in Singapore) will be accepted.

I-2 (ii) Acceptance/Application by way of Electronic Acceptance through any ATM of the Participating Banks Instructions for Electronic Acceptances of provisional allotment of New Units under the Preferential Offering and if applicable, application for Excess New Units will appear on the ATM screens of the Participating Banks. THE FINAL TIME AND DATE FOR ACCEPTANCE OF, PAYMENT FOR AND IF APPLICABLE, EXCESS APPLICATIONS FOR NEW UNITS UNDER THE PREFERENTIAL OFFERING IS: (A) 5:00 P.M. ON 30 SEPTEMBER 2010 IF AN ACCEPTANCE, EXCESS APPLICATION AND PAYMENT IS MADE THROUGH CDP; OR (B) 9:30 P.M. ON 30 SEPTEMBER 2010 IF AN ACCEPTANCE, EXCESS APPLICATION AND PAYMENT IS MADE THROUGH ANY ATM OF THE PARTICIPATING BANKS. If acceptance and payment in the prescribed manner as set out in the ARE and this Offer Information Statement is not received through CDP by 5:00 p.m. on 30 September 2010 or through any ATM of the Participating Banks by 9:30 p.m. on 30 September 2010 from any Singapore Registered Unitholder, the provisional allotment of New Units to the Singapore Registered Unitholder shall be deemed to have been declined and shall forthwith lapse and become void. To the extent to which the provisional allotment is taken up in part only, the balance will be deemed to have been declined. Any subscription moneys to be returned will be returned to the Singapore Registered Unitholders without interest or share of revenue or other benefit arising therefrom, BY ORDINARY POST (where acceptance is through CDP) or by crediting their accounts with the relevant Participating Bank (where acceptance is by way of an Electronic Acceptance), and at the Singapore Registered Unitholders’ own risk within 14 Market Days after the close of the Preferential Offering on 30 September 2010. Such provisional allotments of New Units not so accepted by Singapore Registered Unitholder, will be used to satisfy excess applications, if any, or otherwise dealt with in such manner as the Manager may, in its absolute discretion deem fit in accordance with the terms of this Offer Information Statement. In the event that the Applicant accepts his provisional allotment of New Units under the Preferential Offering, the allotment of New Units will be effected in such manner as the Manager or on its behalf or CDP may, in their absolute discretion deem fit, in accordance with the terms of this Offer Information Statement. However, if the New Units are not issued due to approval not being obtained from the SGX-ST (or due to any other reason), all subscription moneys will be refunded (without interest or any share of revenue or other benefit arising therefrom) within 14 Market Days after the close of the Preferential Offering on 30 September 2010 by any or a combination of the following: (a) by means of a crossed cheque sent BY ORDINARY POST at the Applicant’s own risk if he accepts through CDP; and (b) crediting the Applicant’s bank account with the relevant Participating Bank at his own risk if he accepts through an ATM of the Participating Banks. If any Singapore Registered Unitholder is in any doubt as to the action he should take, he should consult his legal, financial, tax or other professional adviser immediately. The Excess New Units are available for application subject to the terms and conditions contained in the ARE, this Offer Information Statement and if applicable, the Trust Deed of Ascott REIT. Applications for Excess New Units will, at the Manager’s absolute discretion, be satisfied from such New Units that are not validly taken up by the Singapore Registered Unitholders and from provisional allotments of Ineligible Unitholders, the aggregate of fractional entitlements and any New Units that are otherwise not allotted for whatever reason in accordance with the terms and conditions contained in the ARE and this Offer Information Statement. In the event that applications are received by the Manager for more Excess New Units than are available, the Excess New Units available will be allotted in such manner as the Manager may, in its absolute discretion, deem fit, in accordance with the terms of this Offer Information Statement. In the allotment of Excess New Units, preference will be given to Applicants for the rounding of odd lots, and Directors and Substantial Unitholders (including the CapitaLand Group) will rank last in priority. The Manager reserves the right to refuse any application for Excess New Units, in whole or in part, without assigning any reason whatsoever therefor. CDP takes no responsibility for any decision that the Manager may make.

I-3 In the event that no Excess New Units are allotted or if the number of New Units allotted is less than applied for by an Applicant, the amount paid on application or the surplus application monies, as the case may be, will be refunded (without interest or any share of revenue or other benefit arising therefrom) within 14 Market Days after the close of the Preferential Offering on 30 September 2010 by any or a combination of the following: (a) by means of a crossed cheque sent BY ORDINARY POST at the Applicant’s own risk if he applies through CDP; and (b) crediting the Applicant’s bank account with the relevant Participating Bank at his own risk if he applies through an ATM of the Participating Banks.

I-4 APPENDIX J

ADDITIONAL TERMS AND CONDITIONS FOR ELECTRONIC ACCEPTANCES AND APPLICATIONS OF PREFERENTIAL OFFERING NEW UNITS THROUGH AN ATM OF A PARTICIPATING BANK The procedures for Electronic Acceptances of Preferential Offering New Units at the ATMs of the Participating Banks are set out on the ATM screens of the Participating Banks (the “Electronic Acceptance Steps”). For illustration purposes, the procedures for Electronic Acceptances of the New Units through the ATMs of DBS Bank (including POSB ATMs) are set out in the section titled “Steps for Electronic Acceptance of New Units under the Preferential Offering through ATMs of DBS Bank Ltd. (including POSB)” on pages J-4 and J-5 of this Offer Information Statement. Please read carefully the terms of this Offer Information Statement, the instructions set out on the ATM screens of the Participating Banks and the terms and conditions set out below before making an Electronic Acceptance through an ATM of the Participating Banks. Any Electronic Acceptance of Preferential Offering New Units which does not strictly conform to the instructions set out on the screens of the ATM of the relevant Participating Bank through which the Electronic Acceptance is effected will be rejected. All references to “Rights Issue” and “Rights Application” on the ATM screens of the Participating Banks shall mean the Preferential Offering and the acceptance of Preferential Offering New Units and (if applicable) application for Excess New Units, respectively. All references to “Document” on the ATM screens of the Participating Banks shall mean this Offer Information Statement, which includes the ARE. Any references to the “Applicant” in the terms and conditions set out below and the Electronic Acceptance Steps shall mean the relevant Singapore Registered Unitholder who accepts his provisional allotment of Preferential Offering New Units and (if applicable) applies for Excess New Units through an ATM of the Participating Banks. An Applicant must have an existing bank account with and be an ATM cardholder of a Participating Bank before he can effect an Electronic Acceptance at an ATM of the relevant Participating Bank. Upon the completion of his Electronic Acceptance transaction, the Applicant will receive an ATM transaction slip (the “Transaction Record”) confirming the details of his Electronic Acceptance. The Transaction Record is for retention by the Applicant and should not be submitted with any ARE. Unitholders who have subscribed for or purchased Units under the CPFIS and/or the SRS or through a finance company and/or Depository Agent can only accept their Preferential Offering New Units and (if applicable) apply for Excess New Units by instructing the relevant banks, finance company and/or Depository Agent in which they hold their CPFIS accounts and/or SRS accounts to do so on their behalf. ANY APPLICATION MADE DIRECTLY BY THE ABOVE-MENTIONED UNITHOLDERS TO CDP OR THROUGH ATMS WILL BE REJECTED. An Applicant, including one who has a joint bank account with a Participating Bank, must ensure that he enters his own Securities Account number when using the ATM card issued to him in his own name. Using his own Securities Account number with an ATM card which is not issued to him in his own name will render his acceptance and/or application liable to be rejected. Electronic Acceptances shall be made on, and subject to, the terms and conditions of this Offer Information Statement, including but not limited to the terms and conditions appearing below: 1. In connection with his Electronic Acceptance, the Applicant is required to confirm statements to the following effect in the course of activating the ATM for his Electronic Acceptance: (a) that he has read, understood and agreed to all the terms and conditions of acceptance of the Preferential Offering New Units and (if applicable) application for Excess New Units prior to effecting the Electronic Acceptance and agrees to be bound by the same; and (b) that he consents to the disclosure of his name, NRIC/passport number, address, nationality, CDP Securities Account number, CPF Investment Account number and acceptance and (if applicable) application details (the “Relevant Particulars”) from his account with the relevant Participating Bank to the Unit Registrar, CDP, CPF Board, the SGX-ST, the

J-1 Manager and the Joint Lead Managers, Bookrunners and Underwriters (the “Relevant Parties”). His acceptance and/or application will not be successfully completed and cannot be recorded as a completed transaction in the ATM unless he presses the “Enter” or “OK” or “Confirm” or “Yes” key. By doing so, the Applicant shall be treated as signifying his confirmation of each of the two statements above. In respect of statement 1(b) above, his confirmation, by pressing the “Enter” or “OK” or “Confirm” or “Yes” key, shall be treated as his written permission, given in accordance with the relevant laws of Singapore including Section 47(2) of the Banking Act, Chapter 19 of Singapore, to the disclosure by the relevant Participating Bank of the Relevant Particulars of his account to the Relevant Parties. 2. An Applicant may effect an Electronic Acceptance at an ATM of a Participating Bank using cash only by authorising the relevant Participating Bank to deduct the full amount payable from his account with the relevant Participating Bank. 3. The Applicant irrevocably agrees and undertakes to subscribe for and to accept the lesser of the number of New Units allotted as stated on the Transaction Record or the number of Preferential Offering New Units standing to the credit of his Securities Account as at the close of the Preferential Offering and any Excess New Units applied for as stated on the Transaction Record. In the event that the Manager decides to allot any lesser number of Excess New Units or not to allot any Excess New Units to the Applicant, the Applicant agrees to accept this decision as final and binding. 4. If the Applicant’s Electronic Acceptance is successful, his confirmation (by his action of pressing the “Enter” or “OK” or “Confirm” or “Yes” key on the ATM) of the number of Preferential Offering New Units accepted shall signify and shall be treated as his acceptance of the number of Preferential Offering New Units that may be allotted to him and (if applicable) his application for Excess New Units. 5. In the event that the Applicant accepts his provisional allotment of Preferential Offering New Units both by way of an ARE and by way of an Electronic Acceptance, CDP shall be authorised and entitled to accept the Applicant’s instruction in whichever mode or a combination thereof as it may in its absolute discretion deem fit. In determining the number of Preferential Offering New Units which the Applicant has validly given instruction to accept, the Applicant shall be deemed to have irrevocably given instructions to accept such number of Preferential Offering New Units not exceeding the number of Preferential Offering New Units provisionally allotted which are standing to the credit of his Securities Account as at the close of the Preferential Offering, and CDP, in determining the number of Preferential Offering New Units which the Applicant has validly given instructions to accept, shall be authorised and entitled to have regard to the aggregate amount of payment received for the acceptances. 6. If applicable, in the event that the Applicant applies for Excess New Units both by way of ARE and by way of Electronic Acceptance through an ATM of a Participating Bank, CDP shall be authorised and entitled to accept the Applicant’s instructions in whichever mode or a combination thereof as it may, in its absolute discretion, deem fit. In determining the number of Excess New Units which the Applicant has validly given instructions for the application of, the Applicant shall be deemed to have irrevocably given instructions to apply for and agreed to accept such number of Excess New Units not exceeding the aggregate number of Excess New Units for which he has applied by way of ARE and by way of application through Electronic Acceptance through the ATM of a Participating Bank. CDP, in determining the number of Excess New Units which the Applicant has given valid instructions for the application, shall be authorised and entitled to have regard to the aggregate amount of payment received for the application of the Excess New Units, whether by way of cashier’s order or banker’s draft drawn on a bank in Singapore accompanying the ARE or by way of application via Electronic Acceptance through the ATM of a Participating Bank. 7. The Applicant irrevocably requests and authorises the Manager to: (a) register or procure the registration of the Preferential Offering New Units allotted to the Applicant in the name of CDP for deposit into his Securities Account; and (b) return (without interest or any share of revenue or other benefit arising therefrom) the full amount or, as the case may be, the balance of the subscription moneys, should his

J-2 Electronic Acceptance not be accepted or, as the case may be, fully accepted by or on its behalf the Manager for any reason, by automatically crediting the Applicant’s bank account with the relevant Participating Bank with the relevant amount within 14 Market Days after the close of the Preferential Offering. 8. BY EFFECTING AN ELECTRONIC ACCEPTANCE, THE APPLICANT CONFIRMS THAT HE IS NOT ACCEPTING OR APPLYING FOR THE NEW UNITS AS THE NOMINEE OF ANY OTHER PERSON. 9. The Applicant irrevocably agrees and acknowledges that his Electronic Acceptance is subject to risks of electrical, electronic, technical and computer-related faults and breakdowns, fires, acts of God, mistakes, losses and theft (in each case whether or not within the control of CDP, the Manager, the Joint Lead Managers, Bookrunners and Underwriters, the Participating Banks, the CPF Board and/or the Unit Registrar, and other events beyond the control of CDP, the Manager, CPF Board, the Joint Lead Managers, Bookrunners and Underwriters, the Participating Banks and/or the Unit Registrar and if, in any such event, CDP and/or the Manager and/or the Joint Lead Managers, Bookrunners and Underwriters, the Participating Banks, the CPF Board and/or the Unit Registrar do not record or receive the Applicant’s Electronic Acceptance by 9.30 p.m. on 30 September 2010, or data relating to the Applicant’s Electronic Acceptance or the tape containing such data is lost, corrupted, destroyed or not otherwise accessible, whether wholly or partially for whatever reason, the Applicant shall be deemed not to have made an Electronic Acceptance and the Applicant shall have no claim whatsoever against CDP,the Manager, the Joint Lead Managers, Bookrunners and Underwriters, the Participating Banks, the CPF Board and/or the Unit Registrar for the purported acceptance of the Preferential Offering New Units and (if applicable) application for Excess New Units or for any compensation, loss or damage in connection therewith or in relation thereto. 10. Electronic Acceptances may be effected at the ATMs of the Participating Banks between 7.00 a.m. to 9.30 p.m. from Mondays to Saturdays, excluding public holidays. Electronic Applications shall close at 9.30 p.m. on 30 September 2010. 11. All particulars of the Applicant in the records of the relevant Participating Bank at the time he effects his Electronic Acceptance for the Preferential Offering New Units shall be deemed to be true and correct, and the Relevant Parties shall be entitled to rely on the accuracy thereof. If there has been any change in the particulars of the Applicant after the time of the effecting of his Electronic Acceptance, the Applicant shall promptly notify the relevant Participating Bank. 12. The Applicant must have sufficient funds in his bank account(s) with the relevant Participating Bank at the time he effects his Electronic Acceptance of his provisional allotment of Preferential Offering New Units, failing which his Electronic Acceptance will not be completed. Any Electronic Acceptance made at the ATMs of the Participating Banks which does not strictly conform to the instructions set out on the ATM screens of the Participating Banks will be rejected. 13. Where an Electronic Acceptance is not accepted, it is expected that the full amount of subscription moneys will be refunded in Singapore dollars (without interest or any share of revenue or other benefit arising therefrom) to the Applicant by being automatically credited to the Applicant’s account with the relevant Participating Bank within 14 Market Days of the close of the Preferential Offering. An Electronic Acceptance may also be accepted in part, in which case the balance amount of subscription moneys will be refunded. 14. In consideration of the Joint Lead Managers, Bookrunners and Underwriters arranging for the Electronic Acceptance facility through the ATMs of the Participating Banks and agreeing to close the Preferential Offering at 9.30 p.m. on 30 September 2010 or such other time or date as the Manager may (in consultation with the Joint Lead Managers, Bookrunners and Underwriters) in its absolute discretion decide, and by making and completing an Electronic Acceptance, the Applicant agrees that: (a) his Electronic Acceptance for the Preferential Offering New Units is irrevocable; (b) his Electronic Acceptance for the New Units under the Preferential Offering, the acceptance thereof by the relevant Participating Bank and the contract resulting therefrom shall be governed by, and construed in accordance with, the laws of Singapore and he irrevocably submits to the non-exclusive jurisdiction of the Singapore courts;

J-3 (c) the Manager, the Joint Lead Managers, Bookrunners and Underwriters and the relevant Participating Bank shall not be liable for any delay, failure or inaccuracy in the recording, storage or in the transmission or delivery of data relating to his Electronic Acceptance or on its behalf to the Manager or CDP due to a breakdown or failure of transmission, delivery or communication facilities or to any cause beyond their respective controls; (d) he will not be entitled to exercise any remedy of rescission for misrepresentation at any time after acceptance of his provisional allotment of Preferential Offering New Units; and (e) in respect of the Preferential Offering New Units and/or Excess New Units for which his Electronic Acceptance has been successfully completed and not rejected, acceptance of the Applicant’s Electronic Acceptance shall be constituted by written notification by or on behalf of the Manager and not otherwise, notwithstanding any payment received by or on behalf of the Manager. 15. The Applicant should ensure that his personal particulars as recorded by both CDP and the relevant Participating Bank are correct and identical, otherwise, his Electronic Acceptance may be liable to be rejected. The Applicant should promptly inform CDP of any change in his address, failing which the notification letter on successful allotment will be sent to his address last registered with CDP. 16. The existence of a trust will not be recognised. Any Electronic Acceptance by a trustee must be made in his own name and without qualification. The Manager or on its behalf will reject any acceptance by any person acting as nominee. 17. The Applicant hereby acknowledges that, in determining the total number of Preferential Offering New Units which he can validly accept under the Preferential Offering, the Manager and CDP are entitled and the Applicant hereby authorises the Manager and CDP to take into consideration: (a) the total number of New Units which the Applicant has accepted, whether by way of an ARE or by way of an Electronic Acceptance; and (b) the total number of Preferential Offering New Units comprised in the provisional allotment standing to the credit of his Securities Account and which are available for acceptance. The Applicant hereby acknowledges that the determination of CDP and the Manager or on its behalf shall be conclusive and binding on him. 18. The Applicant irrevocably requests and authorises CDP to accept instructions from or on its behalf the Manager in respect of the number of Preferential Offering New Units accepted and (if applicable) applied for by the Applicant by way of an Electronic Acceptance through the ATMs of the Participating Banks, and such instructions shall be binding and conclusive on the Applicant.

Steps for Electronic Acceptance of New Units under the Preferential Offering through ATMs of DBS Bank Ltd. (including POSB) For illustration purposes, the steps for making an Electronic Acceptance through a DBS or POSB ATM are shown below. Certain words appearing on the screen are in abbreviated form (“A/c”, “amt”, “appln”, “&”, “I/C” and “No.” refer to “Account”, “amount”, “application”, “and”, “NRIC” and “Number” respectively.) Any reference of “you” or the “Applicant” in this section refers to an individual accepting his provisional allotment of Preferential Offering New Units, whether in full or in part, by way of an Electronic Acceptance. Instructions for making an Electronic Acceptance on the ATM screens of the Participating Banks (other than DBS Bank ATMs (including POSB), may differ slightly from those represented below.

Steps 1. Insert your personal DBS Bank or POSB ATM Card. 2. Enter your Personal Identification Number. 3. Select “More Services”. 4. Select “ESA-IPO Share/SGS/Investments”. 5. Select “Rights Appln”.

J-4 6. Read and understand the following statements which will appear on the screen: • The offer of securities (or units of securities) will be made in, or accompanied by, a copy of the Offer Information Statement/Document, where applicable. Anyone wishing to acquire these securities (or units of securities) should, where applicable, read the Offer Information Statement/Document before submitting his application and will need to make an application in the manner set out in the Offer Information Statement/Document, where applicable. Where applicable, a copy of the Offer Information Statement/Document has been lodged with the Monetary Authority of Singapore or, as the case may be, the Singapore Exchange Securities TradingLimited, which takes no responsibility for its contents. Where applicable, a copy of the Offer Information Statement/Document has been sent to securities holders and is also available for collection from, where applicable, the CDP and the registrar of the securities of the issuer during normal office hours (subject to availability). Apply through ATM ONLY if the relevant securities are held directly through CDP under your name in the relevant account. If a portion of your holdings is so held through CDP,your ATM application should apply ONLY to that portion. If the relevant securities are held through a finance company/depository agent (including the bank you maintain your CPF/SRS investment account with (“Agent Bank”), where applicable), you SHOULD NOT apply through ATM in respect of the relevant securities held through the relevant finance company/depository agent/Agent Bank. Any such application made through ATM will be rejected by CDP for and on behalf of the issuer. Instead, you should instruct the relevant finance company/depository agent/Agent Bank to apply on your behalf in accordance with the Offer Information Statement/Document, where applicable. Do you wish to proceed with your application through ATM? Press the “TO CONTINUE” button to confirm that you have read and understood. 7. Select the DBS Bank account (DBS AUTOSAVE / CURRENT or DBS SAVINGS / SAVINGS PLUS) or the POSB account (POSB CURRENT or POSB SAVINGS) from which to debit your application moneys. 8. Select “ART PREF” and press the “TO CONTINUE” button. 9. Press the “TO CONTINUE” button to confirm the following statements which appears on the screen: • You have read, understood & agreed to all terms & conditions governing this Acceptance/ Application, including the CDP’s Terms & Conditions governing the Electronic Application for Rights Issues (or other offerings made on a pro-rate basis to securities holders) through the ATM and the Offer Information Statement/Document, where applicable. You consent to disclosure of your name, address, nationality, NRIC/Passport Number, CDP Securities Account Number, CPF Investment Account Number and application details to the registrars of the securities of the issuer, CDP, SCCS, CPF, SGX, issuer/vendor(s) and the issue manager(s). This Application/Acceptance is made in your own name and at your own risk. 11. Enter the number of New Units you wish to accept. 12. Enter the number of Excess New Units you wish to apply for. 13. Enter your own 12-digit CDP Securities Account number. Press the “ENTER” key if your CDP Securities Account number has already been stored in DBS Bank’s records. If the CDP Securities Account Number stored in DBS Bank’s records is incorrect, re-enter your 12-digit CDP Securities Account number and press the “ENTER” key. 14. Check the details of your securities application, your NRIC or passport number and CDP Securities Account number and number of securities on the screen and press the “ENTER” key to confirm your application. (Note: If you see a message “Youdo not have rights entitlements in your CDP Sec A/C or your entitlement has not been credited yet. Do you wish to proceed with this

J-5 application?”, this means that you do not have New Units provisionally allotted to you under the Preferential Offering and you should select “Cancel”.) 15. Remove the Transaction Record for your reference retention only.

J-6 APPENDIX K

LIST OF PARTICIPATING BANKS

• DBS Bank Ltd. (including POSB) • Oversea-Chinese Banking Corporation Limited • United Overseas Bank Limited and its subsidiary, Far Eastern Bank Limited

K-1 This page has been intentionally left blank. This page has been intentionally left blank. This page has been intentionally left blank.