Building Landmarks, CHARTING GROWTH PERENNIAL REAL ESTATE HOLDINGS LIMITED ANNUAL REPORT 2015 VISION To be a leading global integrated real estate and healthcare company committed to enriching the lives of those we serve and delivering value to all of our stakeholders. 鹏 MISSION To build a sustainable business, establish strong lasting relationships, and create long-term growth 程 for our shareholders. 万 CORE VALUES Teamwork We value and empower our people, embrace diversity and work in unity to achieve our corporate goals. 里 Integrity We believe in fair business practices and uphold a high standard of integrity, moral conduct and governance in our dealings with internal and external parties. Excellence We are passionate about our work, innovative and entrepreneurial in spirit, and push the boundaries in pursuit of outstanding performance. Sustainability We are socially, environmentally and economically responsible and treat our stakeholders with respect and compassion. CONTENTS Building Landmarks, OVERVIEW Asset Portfolio - Malaysia Penang Waterfront Integrated Development 106 Corporate Profile 02 CHARTING GROWTH Financial Highlights 03 Asset Portfolio - Ghana Period in Brief 12 Accra Integrated Development 108 Our Presence 14 Letter to Shareholders (English) 16 The majestic bird, Peng( 鹏), is a symbol of strength, courage, Healthcare Business Letter to Shareholders (Chinese) 22 Business Strategy 28 Modern Hospital Guangzhou 110 determination and longevity. It is admired for the clarity of its vision, Board of Directors 32 Chengdu Xiehe International 112 the greatness of its character, the expanse of its reach, and the Management Team 36 Eldercare and Retirement Home St. Stamford Plastic Surgery and 113 protectiveness of its kind. PERFORMANCE Aesthetic Hospital Business Overview 43 Business Structure 45 Financial Review 114 Business Review 46 Value Added Statement 119 With innate qualities similar to the Peng’s, Perennial Real Estate Portfolio at a Glance 58 SUSTAINABILITY Holdings Limited aspires to be an integrated real estate and healthcare Real Estate Business Sustainability Overview 120 Corporate Governance 122 company through harnessing on its quality portfolio of well-located and Asset Portfolio - Singapore Enterprise Risk Management 160 CHIJMES 66 Investor and Media Relations 164 well-connected landmark developments, established and reputable Capitol Singapore 68 Environment 166 TripleOne Somerset 72 Community 169 sponsors, professional and experienced management team, and sustainable AXA Tower 74 People 173 House of Tan Yeok Nee 76 business practices to chart a strong growth path towards a bright future. Chinatown Point 78 FINANCIAL Asset Portfolio - China Statutory Accounts 177 Chengdu East HSR Integrated Development 80 Beijing Tongzhou Integrated Development 86 APPENDIX Xi’an North HSR Integrated Development 90 Supplemental Information 257 Zhuhai Hengqin Integrated Development 94 Statistics of Shareholdings 258 Shenyang Longemont Integrated Development 96 Notice of Annual General Meeting 260 Perennial Jihua Mall, Foshan 102 Proxy Form Perennial Qingyang Mall, Chengdu 104 Corporate Information BUILDING LANDMARKS, CHARTING GROWTH 01 Annual Report 2015 CORPORATE PROFILE FINANCIAL HIGHLIGHTS1 Perennial Real Estate Holdings Limited (“Perennial”) two largest high speed railway stations in the is an integrated real estate and healthcare company country, being Chengdu East High Speed Railway S$132.6M S$197.1M S$6.5B headquartered and listed in Singapore. As a real Integrated Development and Xi'an North High Speed estate owner, developer and manager, Perennial Railway Integrated Development. Other landmark REVENUE EARNINGS BEFORE TOTAL focuses strategically on large-scale mixed-use projects in Perennial's portfolio include Beijing Tongzhou INTEREST AND TAX ASSETS developments and has a presence in China, Integrated Development, Shenyang Longemont Singapore, Malaysia and Ghana with a combined Integrated Development and Zhuhai Hengqin Integrated portfolio spanning over 45 million square feet in gross Development. floor area. Perennial is also a healthcare services owner and operator focused predominantly on China In Singapore, Perennial has invested in and manages and its healthcare business services include medical, prime iconic properties located in the Civic District, S$79.4M S$90.8M 0.45x hospital, eldercare and senior housing. Central Business District and Orchard Road precinct, PROFIT AFTER TAX PATMI BEFORE GEARING such as CHIJMES, Capitol Singapore, AXA Tower, LESS MINORITY TRANSACTION RATIO Perennial is a dominant commercial developer with TripleOne Somerset, House of Tan Yeok Nee and 2 sizeable integrated developments in China, of which Chinatown Point mall. INTEREST (“PATMI”) COSTS two are regional commercial hubs adjacent to the 0.4Cents3 6.88Cents3 S$1.688 DIVIDEND EARNINGS NET ASSET VALUE PER SHARE PER SHARE PER SHARE 1 This Annual Report is for the period from 1 July 2014 to 31 December 2015 (“Annual Report 2015”). Perennial’s real estate business commenced from 28 October 2014 as the reverse takeover (“RTO”) of St. James Holdings Limited was completed on 27 October 2014. The financial highlights thus reflect Perennial's real estate business from 28 October 2014 to 31 December 2015. 2 One-off transaction costs for RTO and Voluntary Offer (“VO”) were S$11.4m. 3 Denoted in Singapore Dollars. Beijing Tongzhou Integrated Development Artist’s Impression. Picture may differ from the actual view of the completed property. PERENNIAL REAL ESTATE HOLDINGS LIMITED 02 Annual Report 2015 BUILDING LANDMARKS, CHARTING GROWTH 03 Annual Report 2015 The Peng (鹏) soars to great heights to get a commanding view of an expansive terrain. From a good vantage point, it uses its sharp vision to scan the horizon, so as to spot and seize 远 opportunities with precision. 见 卓 识 CLEAR VISION, DEFINED STRATEGY Guided by a steadfast vision and keen foresight, Perennial proactively seeks, identifies and seizes opportunities in the integrated real estate and healthcare business space. To realise this endeavour, Perennial employs a well-defined and disciplined strategy to create value for our stakeholders. PERENNIAL REAL ESTATE HOLDINGS LIMITED 04 Annual Report 2015 BUILDING LANDMARKS, CHARTING GROWTH 05 Annual Report 2015 The Peng’s(鹏) sturdy build, formidable stance and remarkable endurance enable it to ascend with agility and finesse. These physical strengths are complemented by an astute knowledge of the environment, allowing the Peng to 本 thrive in its quest. 固 枝 荣 DEEP INSIGHTS, STRONG FUNDAMENTALS Perennial’s strong fundamentals are underpinned by its reputable sponsors, professional management team, quality portfolio and robust financial position, all forming a sound platform for charting long-term growth. PERENNIAL REAL ESTATE HOLDINGS LIMITED 06 Annual Report 2015 BUILDING LANDMARKS, CHARTING GROWTH 07 Annual Report 2015 The Peng (鹏) stands out by virtue of its large and powerful wings that allow for longer flights and broader coverage. Its ability to synergise its unique flying capabilities with the wind enables it to scale new heights 广 and venture further. 袤 无 垠 DISTINCTIVE SCALE, STRATEGIC SYNERGY Perennial’s portfolio of sizeable and well-connected landmark integrated developments is distinguished by the inherent synergy of its components. The optimisation of this synergy is integral in Perennial’s strategy to expand its presence and advance into the next frontier of growth. PERENNIAL REAL ESTATE HOLDINGS LIMITED 08 Annual Report 2015 BUILDING LANDMARKS, CHARTING GROWTH 09 Annual Report 2015 In classical literature, once the Peng (鹏) attains adulthood, it becomes ready to spread its wings and embarks on a noble journey of self-transcendence and reaching out to others. 泽 被 万 物 BALANCED GROWTH, SUSTAINABLE PRACTICES Beyond attractive returns, Perennial adopts strong principles of governance and sustainable practices in pursuit of balanced, inclusive and meaningful growth. By being a responsible corporate entity, Perennial aims to enrich the lives of all of its stakeholders. PERENNIAL REAL ESTATE HOLDINGS LIMITED 10 Annual Report 2015 BUILDING LANDMARKS, CHARTING GROWTH 11 Annual Report 2015 PERIOD IN BRIEF 1 JULY TO 9 OCTOBER 2014 26 DECEMBER 2014 10 APRIL 2015 20 AUGUST 2015 A Reverse Takeover (“RTO”) of St. James Holdings Listing transferred from Catalist to the Mainboard of SGX-ST. Completed the acquisition of a 30% interest and a 23.3% Entered into a 55-45 JV with Shangri-La Asia Limited Limited (“St. James”), an entertainment business listed interest in Beijing Tongzhou Integrated Development to develop an over US$250 million (approximately on Catalist of Singapore Exchange Securities Trading Phase 1 and Phase 2 respectively (Deferred Beijing S$352 million) integrated development in Accra, Ghana, Limited (the “SGX-ST”), was undertaken by Perennial 22 JANUARY 2015 Acquisition3 under the RTO). marking Perennial’s maiden foray into Africa. Real Estate Holdings Pte. Ltd. and other vendors through the injection of real estate assets and businesses. Established a S$2 billion Multicurrency Debt Issuance Programme. 10 OCTOBER 2014 30 JANUARY 2015 Successfully convened an Extraordinary General Meeting (“EGM”) with all of the resolutions pertaining to the RTO Syndicated a consortium of investors to acquire AXA approved. Tower, a 50-storey landmark Grade 'A' office development with a retail podium in Singapore at an agreed property price of S$1.17 billion with Perennial acquiring an equity interest of 31.2%. 15 OCTOBER 2015 Secured