Appendix Iii Property Valuation Report
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THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT The following is the summary of values within the valuation reports received from Savills (Malaysia) Sdn Bhd (“Savills Malaysia”), as independent Property Valuer in connection with their opinion of values of the Property interests of the Group as at 3 April 2019, prepared for the purpose of incorporation in this document. Savills (Malaysia) Sdn Bhd Level 9, Menara Milenium Jalan Damanlela Bukit Damansara 50490 Kuala Lumpur Malaysia T : +603 2092 5955 F : +603 2092 5966 www.savills.com.my The Board of Directors Infinity Logistics & Transport Ventures Limited No. 2, Jalan Kasuarina 8 Bandar Botanic 41200 Klang Selangor Darul Ehsan Malaysia [Date] Dear Sirs, INSTRUCTIONS In accordance with the instructions of Infinity Logistics & Transport Ventures Limited (referred to as the “Company”) and its subsidiaries (together referred to as the “Group”) for Savills Malaysia to value the properties situated in Malaysia (as more particularly described in the attached valuation reports), we confirm that we have inspected the properties, made relevant enquiries and obtained such further information as we consider necessary for the purpose of providing you with our opinion of values of the properties as at 3 April 2019 (the “valuation date”). – III-1 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT DEFINITION OF MARKET VALUE The valuation of each of the properties represent its Market Value. The definition of Market Value adopted in the Malaysian Valuation Standards (Sixth Edition 2019) issued by the Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia follow the International Valuation Standards published by the International Valuation Standard Council (“IVSC”). Market Value is defined by the Malaysian Valuation Standards (Sixth Edition 2019) as “the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion”. VALUATION BASIS AND ASSUMPTIONS In valuing the properties, we have complied with the requirements set out in Chapter 5 of the Main Board Listing Rules of The Stock Exchange of Hong Kong Limited published by The Stock Exchange of Hong Kong Limited, Malaysian Valuation Standards (Sixth Edition 2019) issued by Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia and International Valuation Standards 2017 by IVSC. Our valuations have been made on the assumption that the properties are sold in the open market without the benefit of a deferred term contract or any similar arrangement which could serve to affect the values of the properties. In valuing the properties, we have assumed that the Group has an enforceable title to each of the properties and has free and uninterrupted rights to use, occupy or assign the properties for the whole of the respective unexpired land use term as granted. No allowance has been made in our valuation for any charges, mortgages or amounts owning on any property nor for any expenses or taxation which may be incurred in effecting a sale. Unless otherwise stated, it is assumed that the properties are free from encumbrances, restrictions and outgoings of an onerous nature which could affect their values. Dimensions, measurements and areas included in the valuation reports are based on information provided to us and are therefore only approximations. Unless otherwise stated, dimensions and areas would be measured on-site or scaled off from the plans and calculated in accordance with, where appropriate, each local measurement guidelines and are quoted to a reasonable approximation, with reference to their source. We confirm that we do not have a pecuniary interest that would conflict with a proper valuation of the properties and the valuers undertaking the valuation are authorised to practise as valuers and have the necessary expertise and experience in valuation of such type of properties. – III-2 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions and is our personal, unbiased professional analyses, opinions and conclusions. VALUATION METHODOLOGY In valuing Property No. 1, we have concluded that this Property has “no commercial value” mainly due to the fact that there are restrictions against any assignment and sub-letting of the property. For the Company’s internal management reference purpose, we reported a reference value of this Property to the Company. In arriving of the “reference value” for Property No. 1, we have adopted the Cost Approach. The values of the land and building (under construction) are separately determined and a summation of these values is taken to be the Market Value of the Property as an integral whole. The value of the land is arrived at by the “profit rent” principle whilst the value of the building is arrived by making reference to the costs spent as at valuation date based on Certificate of Payment No. 5 (ref: MAD/PKFZ-COP 5 dated 26 March 2019) amounting to approximately RM16,500,000. In valuing Property No. 2, we have adopted the Comparison Approach which entails comparing the Property with comparable properties which were sold or are being offered for sale and making adjustments for factors which affect value such as location, market conditions, size, tenure, siting, efficiency and restriction (if any), availability of infrastructure, vacant possession and other relevant characteristics. In valuing Property No. 3, which is tenanted by the Group in Malaysia, we consider that the Property has “no commercial value” mainly due to either no provision for/the prohibition against assignment and sub-letting or otherwise lack of substantial profit rents. TITLE INVESTIGATION We have relied upon on the property data and information supplied by the Client and the Group legal adviser, David Lai & Tan (DLT) which we assumed to be true and accurate. Savills Malaysia takes no responsibility for inaccurate data and information supplied by the owner & its legal advisor and subsequent conclusions related to such data. SOURCE OF INFORMATION We have relied to a very considerable extent on the information given to by the Group and its legal adviser in Malaysia, DLT, regarding to the title of each of the properties and the interests of the Group in the properties. We has accepted advice given by the Group on such matters as planning approvals or statutory notices, easements, tenure, identification of land and buildings, completion date of buildings, particulars of occupancy, site & floor areas and all other relevant matters. However, Savills Malaysia has not inspected the original documents to ascertain the existence of any amendments which may not appear on the copies provided to us. – III-3 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT We have assumed that, unless otherwise stated, the transferable land use rights of the properties for their respective terms at nominal annual land use fees have been granted and that any premiums payable have already been fully paid. SITE INSPECTION Our valuers Datuk Sr. Paul Khong, Mr. Lee Yen Ten and Mr. Tan Yi Huan have inspected the properties on 3 April 2019. However, they have not carried out site investigations to determine the suitability of the soil conditions and the services etc. The valuations are prepared on the assumption that these aspects are satisfactory and that no extraordinary costs or delay will be incurred during the construction period. No structural survey has been made, but in the course of our inspection, we did not note any serious defects. We are not, however, able to report that the properties are free of rot, infestation or any other structural defects. No tests were carried out to any of the services. Unless otherwise stated, we have not been able to carry out on-site measurements to verify the site and floor areas of the properties and we have assumed that the areas shown on the documents handed to us are accurate and correct. CURRENCY AND EXCHANGE RATE Unless otherwise stated, all monetary sums as shown in our valuation reports are expressed in Ringgit Malaysia (“RM”) which is the official currency of Malaysia. We enclosed herewith our summary of values and valuation reports. Yours faithfully, For and on behalf of SAVILLS (MALAYSIA) SDN BHD DATUK SR. PAUL KHONG MRICS FRISM APEPS Chartered Surveyor Registered Valuer (V-528) Managing Director Note: Datuk Sr. Paul Khong is the Managing Director of Savills (Malaysia) Sdn Bhd and a Registered Valuer who has over 25 years of experience in the valuation of properties in Malaysia. – III-4 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT SUMMARY OF VALUES Market Value in existing state as at No. Property 3 April 2019 GroupI–Property held by the Group under construction in Malaysia 1. A Registered Lease interest of KNS Infinity Sdn Bhd No commercial value* built-upon with two detached warehouses (under construction), (* for the reference Precinct 8, value, please refer Part of P806, P808, to Note 6 of the P832 & P833, report) Port Klang Free Zone/KS12, 42920 Pulau Indah, Selangor Darul Ehsan, Malaysia.