134 SUNWAY REIT ANNUAL REPORT 2016 PROPERTY SUMMARY ¶OFFICE· ¶CONT’D· SUNWAY WISMA PUTRA TOWER SUNWAY LOCATION LOCATION KUALA LUMPUR SELANGOR DATE OF ACQUISITION DATE OF ACQUISITION 19 APRIL 2011 23 MARCH 2015 ACQUISITION PRICE (RM MILLION) ACQUISITION PRICE (RM MILLION) 80 60 TITLE, EXPIRY DATE & YEARS REMAINING TITLE, EXPIRY DATE & YEARS REMAINING • Geran 10012, Lot No. 38, Seksyen 51 Strata Title • PN 21876/M1/B1/1 • PN 21876/M1/11/10 Kuala Lumpur, Wilayah Persekutuan • PN 21876/M1/1/3 • PN 21876/M1/12/11 TENURE • PN 21876/M1/N1/4 • PN 21876/M1/13/12 Freehold • PN 21876/M1/N1/5 • PN 21876/M1/14/13 • PN 21876/M1/2/6 • PN 21876/M1/15/14 ENCUMBRANCE • PN 21876/M1/8/7 • PN 21876/M1/16/15 1. Charged to Public Investment Bank Berhad • PN 21876/M1/9/8 • PN 21876/M1/17/16 2. Charged to HSBC Amanah Malaysia Berhad • PN 21876/M1/10/9 3. 30 years lease to Lembaga Letrik Negara Tanah Melayu (Tenaga Nasional Berhad) expiring 4 April 29 August 2094 (78 years remaining) 2017 All situated on Parent Lot No. 517 Bandar Shah Alam 4. Private Caveat by Trustee Daerah Petaling, Selangor Darul Ehsan YEAR OF COMPLETION TENURE 1993 Leasehold - 99 years APPRAISED VALUE RM MILLION ENCUMBRANCE 110 - DATE OF LATEST VALUATION* YEAR OF COMPLETION JUNE 2016 1997; Refurbished in 2013 APPRAISED VALUE RM MILLION 62 DATE OF LATEST VALUATION* JUNE 2016 *NOTE: Valued by C H Williams Talhar & Wong Sdn Bhd SUNWAY REIT ANNUAL REPORT 2016 135 PROPERTY SUMMARY ¶OFFICE· ¶CONT’D· SUNWAY MENARA SUNWAY PUTRA WISMA OFFICE ASSETS SUNWAY TOWER TOWER SUNWAY TOTAL Land Area (sq. ft.) 193,395 25,898 193,6211 47,813 460,727 Gross Floor Area - Office (sq. ft.) 399,446 348,998 453,842 174,171 1,376,457 Gross Floor Area - Car Park (sq. ft.) 266,696 107,606 575,2581 127,552 1,077,112 Net Lettable Area (sq. ft.) 291,370 268,306 317,051 171,544 1,048,271 Number of Parking Bays > 650 > 290 > 1,5001 > 380 > 2,820 Number of Tenancies 49 11 6 8 74 Occupancy as at 30 June 2016 (%) 90.2 21.2 25.7 87.6 52.6 Revenue (RM million) 16.3 3.7 3.6 6.7 30.3 Net Property Income (RM million) 10.7 (0.9) 0.5 4.2 14.5 Appraised Value as at 30 June 2016 164 135 110 62 471 (RM million)2 Value per sq. ft. (RM) 563 503 347 361 N/A Capitalisation Rate - Current / 6.50 to 6.00 to 6.00 to 6.75 to N/A Reversionary (%) 7.00 6.50 6.50 7.25 1 For the entire complex comprising Sunway Putra Mall, Sunway Putra Hotel and Sunway Putra Tower 2 All the properties are valued by C H Williams Talhar & Wong Sdn Bhd N/A - Not Applicable 136 SUNWAY REIT ANNUAL REPORT 2016 PROPERTY SUMMARY ¶OFFICE· MENARA SUNWAY Menara Sunway is a 19-storey office building in Bandar Sunway consisting of a main tower and an annexe. Unlike a standalone office building, Menara Sunway offers a unique office environment where its tenants can take advantage of the convention centre and the surrounding hospitality, leisure and retail options offered by the Sunway Resort City. With its headquarters based in Menara Sunway, Sunway Group is the main tenant occupying 70.3% of the NLA. It is easily accessible via 5 major expressways namely New Pantai Expressway, North Klang Valley Expressway, KESAS Expressway, Damansara-Puchong Highway, and the Federal Highway. Surrounded by highly populated suburbs such as Subang Jaya, Puchong and Petaling Jaya, Menara Sunway is a preferred office location for office workers due to shorter travel time as compared to commuting to the city centre. SUNWAY GROUP’S HOMEPLACE Jalan Lagoon Timur, Bandar Sunway, 47500 Selangor Darul Ehsan ONGOING INITIATIVES Menara Sunway’s façade is being upgraded to modernize the building and enable it to blend with Sunway Pinnacle. Menara Sunway Management Office Tel: (603) 5639 8888 Unit 4.5 Level 4 East Lobby, Fax: (603) 5639 9595 Menara Sunway Annexe, Jalan Lagoon Timur, Bandar Sunway, 47500, Selangor Darul Ehsan, Malaysia. SUNWAY REIT ANNUAL REPORT 2016 137 PROPERTY SUMMARY ¶OFFICE· ¶CONT’D· MENARA SUNWAY Land area GFA NLA No. of No. of Occupancy as at Revenue NPI (sq. ft.) (sq. ft.) (sq. ft.) parking bays tenancies 30 June 2016 (%) (RM million) (RM million) 193,395 399,446 291,370 > 650 49 90.2 16.3 10.7 (Office) 266,696 (Car Park) HISTORICAL OCCUPANCY RATE LEASE EXPIRY SCHEDULE Average occupancy rate Expiring tenancies as % of total NLA 98.5% 98.9% 98.8% 97.1% 81.1% 89.3% 3.7% 5.4% FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 TENANT MIX BY TRADE SECTOR TOTAL TOP TENANTS Based on June 2016 Gross Rental Income Based on June 2016 Gross Rental Income 76.6% Total Top Tenants 2.0% 21.3% Sunway Management Sdn Bhd 2.0% 12.6% 2.7% 32.0% Sunway Integrated 18.4% 3.2% Properties Sdn Bhd 5.5% Sunway Construction 8.9% Group Berhad 7.3% 11.6% 21.1% 7.3% Merck Sdn Bhd Sunway Shared 7.0% Services Sdn Bhd Grace Generation Information 2.8% Technology Sdn Bhd Management Services Leisure 2.8% Sunway PFM Sdn Bhd Property Trading 2.7% Sunway Marketing Construction Supply & Manufacturing Sdn Bhd Sunway Quarry Medical Marketing 2.7% Industries Sdn Bhd Technology Others Sunway Computer 2.7% Services Sdn Bhd Weighted Average Lease Expiry 2.38 years 138 SUNWAY REIT ANNUAL REPORT 2016 PROPERTY DETAILS ¶OFFICE· SUNWAY TOWER Sunway Tower is a 33-storey prime office building that is a 5 minute drive away from the Petronas Twin Tower and Kuala Lumpur Convention Centre (KLCC). It is strategically located near the intersection of Jalan Sultan Ismail and Jalan Ampang in Kuala Lumpur. The property’s location is in an area commonly referred to as the Golden Triangle and adjacent to the entry and exit points of the Ampang- Kuala Lumpur Elevated Highway which links to major highways within and around the Klang Valley as well as Dang Wangi LRT station and Bukit Nanas monorail station. Thus, making it convenient for office workers to gain access to the heart of Kuala Lumpur City Centre. CHANGING DYNAMICS N0. 86 Jalan Ampang, 50450 Kuala Lumpur Sunway Tower Management Office Tel: (603) 2032 4100 Ground Floor, Sunway Tower, Fax: (603) 2070 4093 No. 86 Jalan Ampang, 50450, Kuala Lumpur, Malaysia. SUNWAY REIT ANNUAL REPORT 2016 139 PROPERTY DETAILS ¶OFFICE· ¶CONT’D· SUNWAY TOWER Land area GFA NLA No. of No. of Occupancy as at Revenue NPI (sq. ft.) (sq. ft.) (sq. ft.) parking bays tenancies 30 June 2016 (%) (RM million) (RM million) 25,898 348,998 268,306 > 290 11 21.2 3.7 (0.9) (Office) 107,606 (Car Park) HISTORICAL OCCUPANCY RATE LEASE EXPIRY SCHEDULE Average occupancy rate Expiring tenancies as % of total NLA 93.5% 11.4% 83.0% 84.3% 7.4% 66.9% 2.4% 19.6% FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 TENANT MIX BY TRADE SECTOR TOTAL TOP TENANTS Based on June 2016 Gross Rental Income Based on June 2016 Gross Rental Income 98.4% Total Top Tenants WPP Business 8.5% 19.4% Services Sdn Bhd 8.3% 18.4% VPO Services Sdn Bhd 50.0% 13.8% 15.2% ZI Advisory Sdn Bhd 13.8% Royal Danish Embassy 19.4% Bexcel Shared Services 11.1% Malaysia Sdn Bhd 8.3% R1 International Sdn Bhd 5.4% Eagle Eye Technologies Sdn Bhd Consultancy (Finance) Consultancy (Rubber) Consultancy Others 3.2% San Francisco Coffee Sdn Bhd Embassy Sunway Leisure 2.1% Services Sdn Bhd Weighted Average Lease Expiry 1.5% Bison Store Sdn Bhd 2.10 years 140 SUNWAY REIT ANNUAL REPORT 2016 PROPERTY DETAILS ¶OFFICE· SUNWAY PUTRA TOWER Sunway Putra Tower is an office tower which forms part of a 3-in-1 mixed-use development comprising a retail mall, a hotel and an office tower. It is mainly occupied by government agencies and it is currently home to Malaysia’s consumer tribunal for Kuala Lumpur which operates under the Ministry of Domestic, Trade, Co-operatives and Consumerism. Sunway Putra Tower is strategically located in Kuala Lumpur’s commercial district right across the Putra World Trade Centre (PWTC). It is easily accessible via major highways and well served by public transportation such as the STAR Light Rail Transit (LRT), KTM Komuter Train and bus. The Hentian Putra Bus Station which caters to coaches plying the East Coast routes is within walking distance. All these infrastructures and facilities adds value to the well-established office asset. STRATEGICALLY LOCATED No. 100 Jalan Putra, 50350 Kuala Lumpur Sunway Putra Tower Management Office Tel: (603) 4042 9888 100, Jalan Putra, Fax: (603) 4043 8806 50350, Kuala Lumpur, Malaysia. SUNWAY REIT ANNUAL REPORT 2016 141 PROPERTY DETAILS ¶OFFICE· ¶CONT’D· SUNWAY PUTRA TOWER Land area GFA NLA No. of No. of Occupancy as at Revenue NPI (sq. ft.) (sq. ft.) (sq. ft.) parking bays tenancies 30 June 2016 (%) (RM million) (RM million) 193,6211 453,842 317,051 > 1,5001 6 25.7 3.6 0.5 (Office) 575,2581 (Car Park) 1 For the entire complex comprising Sunway Putra Mall, Sunway Putra Hotel and Sunway Putra Tower HISTORICAL OCCUPANCY RATE LEASE EXPIRY SCHEDULE Average occupancy rate Expiring tenancies as % of total NLA 85.2% 17.7% 78.0% 74.2% 8.0% 52.8% 26.4% FY2012 FY2013 FY2014 FY2015 FY2016 FY2018 FY2019 TENANT MIX BY TRADE SECTOR TOTAL TOP TENANTS Based on June 2016 Gross Rental Income Based on June 2016 Gross Rental Income 100.0% Total Top Tenants 5.0% 2.0% Kementerian Perdagangan 61.1% Dalam Negeri Koperasi Dan 93.0% Kepenggunaan Malaysia Jabatan Perdana Menteri 14.9% (I.C.U) 14.8% Jabatan Pengairan & Saliran Malaysia (JPS) 5.0% Chini Enterprise Sdn Bhd Government Agency Communication Medical 2.2% Yayasan Ihsan Rakyat Weighted Average Lease Expiry Mastercare Business 2.0% 2.53 years Management 142 SUNWAY REIT ANNUAL REPORT 2016 PROPERTY DETAILS ¶OFFICE· WISMA SUNWAY Wisma Sunway is a stratified 19-storey office building¹ located in the vibrant Section 9, Shah Alam, the state government precinct of Selangor.