Paramount to sell and lease back Sri KDU Schools

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Jordan Lee & Jaafar Sdn. Bhd. www.jlj.com.

file complaints to the Board of Valuers, Appraisers and Real Estate Agents (LPPEH), in accordance to the Valuers, Appraisers and Estate Agents (Amendment) Bill 2017.

Paramount to sell and lease back Sri KDU Schools Scientex purchases first land in Klang Valley Johor-based property developer Scientex has purchased 65.

), represents the developer s first land purchase in Klang Valley. The transaction was made through its wholly-owned subsidiary Scientex Park (M) Sdn. Bhd.

The land is located near the Rawang town centre and amenities such as the Rawang AEON shopping Mall and KPJ Rawang Specialist Hospital. Source: TheEdgeProperty.com TheStar.com.my TheSunDaily.

international schools, Sekolah Sri KDU and Sri KDU international schools to the unlisted Alpha Real Estate Investment Trust (REIT) for RM165 mil.

1 Jordan Lee & Jaafar Sdn. Bhd. Happy 60th National Day to all Malaysians News Highlights Valuers, Appraisers & Estate Agents Amendment Bill passed Consumers and property owners who use the services of property managers can now file complaints to the Board of Valuers, Appraisers and Real Estate Agents (LPPEH), in accordance to the Valuers, Appraisers and Estate Agents (Amendment) Bill During the debate held at the Dewan Negara sitting, Deputy Finance Minister Datuk Seri Othman Aziz stated that this would allow property managers who do not perform their duties to the extent of malpractice. The amendment to Act 242, which was passed by the Senate in August, will now regulate property managers by setting up a register for property managers under the purview of the Ministry of Finance. Paramount to sell and lease back Sri KDU Schools Scientex purchases first land in Klang Valley Johor-based property developer Scientex has purchased 65.3 acres of freehold land in Rawang for a mixed development project. This transaction, worth RM85.4 million (analysed at RM30 per sq. ft.), represents the developer s first land purchase in Klang Valley. The transaction was made through its wholly-owned subsidiary Scientex Park (M) Sdn. Bhd., which entered in a sale and purchase agreement with Medius Developments Sdn. Bhd. The land is located near the Rawang town centre and amenities such as the Rawang AEON shopping Mall and KPJ Rawang Specialist Hospital. Source: TheEdgeProperty.com TheStar.com.my TheSunDaily.my Bursa Malaysia The private and international schools are to be sold and leased back for years PETALING JAYA: Paramount Corp Bhd is proposing to dispose of the company s private and international schools, Sekolah Sri KDU and Sri KDU international schools to the unlisted Alpha Real Estate Investment Trust (REIT) for RM165 mil. In a stock exchange filing, Paramount announced that the company had entered into a master agreement and triple net lease with Alpha REIT to dispose of said property. The transaction represents the first education REIT in Malaysia. Paramount announced that the proposed disposal was in line with the Group s plan to pursue an asset light strategy. They also stated that monetising their real estate assets through this transaction enables it to unlock capital resources from being tied up in long term assets, providing growth capital and allowing the Group to focus on its core activities to ultimately better reward shareholders. In accordance to the proposed lease, SKDU s operations will continue at its existing premises without any disruption, at the same time locking in rental rates over a period of ten (10) years with options to extend the lease for another twenty (20) years, thus eliminating rental rate volatility risks. >Transaction details on Page 5

News Highlights Sunway acquires Subang Jaya and Kajang plots Sunway Bhd has purchased two plots of freehold land a 14.8-acre tract in Sungai Penaga, Subang Jaya for RM167.59 million, and a 5.

) will be used for warehousing and storage facilities for its trading and manufacturing businesses. However, the land may be used for a proposed mixed development with a GDV of about RM1.

, is erected with semi-completed structures that Sunway intends to complete as a mixed development, comprising a retail podium or commercial lots and serviced apartments or SOHO, with an estimated

34- acre piece of freehold land in Wangsa Maju for RM51.07 million (analysed at RM270 per sq. ft.) to undertake a mixed development project.

2 News Highlights Sunway acquires Subang Jaya and Kajang plots Sunway Bhd has purchased two plots of freehold land a 14.8-acre tract in Sungai Penaga, Subang Jaya for RM million, and a 5.28 acre plot in Kajang for RM63 million. The Sungai Penaga freehold industrial land (analysed at RM260 per sq. ft.) will be used for warehousing and storage facilities for its trading and manufacturing businesses. However, the land may be used for a proposed mixed development with a GDV of about RM1.4 billion in five years time. The Kajang land, which was purchased from Concept Housing Development (M) Sdn. Bhd., is erected with semi-completed structures that Sunway intends to complete as a mixed development, comprising a retail podium or commercial lots and serviced apartments or SOHO, with an estimated GDV of RM460 million in five years. Northpoint appoints Jordan Lee & Jaafar as Property Managers Page 2 Sunway acquires Wangsa Maju Land Sunway Bhd. is acquiring a acre piece of freehold land in Wangsa Maju for RM51.07 million (analysed at RM270 per sq. ft.) to undertake a mixed development project. The land was purchased from Setapak Heights Development Sdn. Bhd. by Sunglobal Resources Sdn. Bhd., of which Sunway owns a 55% stake while 45% was held by Huatland Development Sdn. Bhd. Sunway stated that the development comprising two blocks of serviced apartments with some lifestyle units on the podium is expected to be completed over five years and will have a GDV of RM500 million. The proposed development will have products that will be priced at an average of RM550,000 per unit. The team of Jordan Lee & Jaafar, JMB Committee members and IGB representatives at the signing ceremony in Grand Harbour Restaurant, Mid Valley City The Joint Management (JMB) Body of Northpoint Mid Valley City has appointed Jordan Lee & Jaafar Sdn. Bhd. as property managers for the commercial development in Mid Valley City. The signing ceremony was held on August 23, 2017 (Wednesday) at the Grand Harbour Restaurant in Mid Valley City. The company will be taking over property management duties from present property managers, Knight Frank Malaysia, effective from January 1, Managing Director of Jordan Lee & Jaafar, Mr. P. Tangga Peragasam (left) and JMB Chairman Mr Simon Tan Goh Ban Huat Bhd buys Mont Kiara land Goh Ban Huat Bhd (GBH) is acquiring a plot of freehold land in Mont Kiara for RM39.53 million (analysed at RM370 per sq. ft.) to benefit from future capital appreciation while waiting for the opportunity to develop said land when the market improves. The land, which was purchased from Puncak Melati Sdn. Bhd. by GBH s wholly-owned subsidiary GBH Land Sdn. Bhd., is located within 1km from Plaza Mont Kiara and 1Mont Kiara Mall. >Transaction details on Page 6 Source: TheEdgeProperty.com TheStar.com.my TheSunDaily.my Bursa Malaysia B, PLAZA DAMANSARA, JALAN MEDAN SETIA, BUKIT Northpoint, Mid Valley City PROPERTY SPOTLIGHT: NORTHPOINT MID VALLEY CITY Developed by Mid Valley City Developments Sdn. Bhd. (Subsidiary of IGB Corporation Berhad) Two towers of serviced residences (228 units) and office suites (204 units) Tenure: Leasehold Occupancy: 95% (August 2017) Unit sizes: 1,400sf 1,900sf (office suites) 10,000sf (penthouse suite) 1,350sf 1,900 (serviced residences) 2,600sf 3,400sf (penthouse suite)

PROPERTY SPOTLIGHT: NORTHPOINT MID VALLEY CITY Mid Valley City Masterplan Mid Valley City by IGB Corporation comprises development components such as Mid Valley Megamall, the Boulevard offices,

3 PROPERTY SPOTLIGHT: NORTHPOINT MID VALLEY CITY Mid Valley City Masterplan Mid Valley City by IGB Corporation comprises development components such as Mid Valley Megamall, the Boulevard offices, Northpoint office suites and residences, the Gardens Mall, Menara IGB, Cititel Hotel and Boulevard Hotel, Garden Residences and Garden Hotel, Centrepoint South and Centrepoint North as well as the Gardens South Tower and North Tower. Page 3 Strategically located within the heart of Klang Valley, Mid Valley City is envisaged to be a one-stop centre for business, leisure and living at the fringes of the Kuala Lumpur city centre. Accessibility to the development is seamless, with connectivity via the Mid Valley KTM station as well as major roads such as Old Klang Road, Federal Highway and New Pantai Expressway. Northpoint Mid Valley City Completed in the year 2006, Northpoint Mid Valley City is located at the northern entrance to Mid Valley City. The 22-storey development comprises two towers of office suites and residences. With a bridge connecting Northpoint and Midvalley Megamall, the development offers unparalleled convenience that effortlessly blends business, retail and lifestyle elements. TRANSACTED PRICES IN NORTHPOINT MID VALLEY CITY Some recorded transactions of office and residential suites within Northpoint Mid Valley City are listed as follows: - Office Suites Size Price Rate Date (sq. ft.) (RM) (RM p.s.f.) 1,604 1,660,140 1,035 March 30, ,604 1,738,000 1,084 October 26, ,410 1,410,000 1,000 October 25, ,841 1,785, October 13, 2016 Residential Suites Size Price Rate Date (sq. ft.) (RM) (RM p.s.f.) 1,905 1,800, November 30, ,905 1,850, October 26, ,367 1,450,000 1,061 September 29, ,356 1,220, September 15, 2016 Source: Jabatan Penilaian dan Perkhidmatan Harta

Page 4 Mid Valley City Master Plan ECONOMIC SNAPSHOT 2Q 2017 Malaysia s Real GDP Growth (Annual change) In the second quarter of 2017, Bank Negara Malaysia reported that the economy expanded by 5.8%.

On a quarter-on quarter seasonally-adjusted basis, the economy recorded a growth of 1.3%. Headline inflation also declined to 4.0% primarily due to lower domestic fuel prices.

Occupancy rates were however on the decline as the oversupply in office space and retail space persisted. This is likely to be made worse by further incoming supply.

4 Page 4 Mid Valley City Master Plan ECONOMIC SNAPSHOT 2Q 2017 Malaysia s Real GDP Growth (Annual change) In the second quarter of 2017, Bank Negara Malaysia reported that the economy expanded by 5.8%. The growth was attributable to domestic demand, specifically private sector spending. There was also improvement on the supply side driven by expansions across all major sectors. On a quarter-on quarter seasonally-adjusted basis, the economy recorded a growth of 1.3%. Headline inflation also declined to 4.0% primarily due to lower domestic fuel prices. Amidst improved market sentiments, volatility within domestic financial markets was low. Domestic funding conditions were also positive and supportive of businesses and households. Occupancy rates were however on the decline as the oversupply in office space and retail space persisted. This is likely to be made worse by further incoming supply. Ultimately, the Malaysian economy is augured to grow by more than 4.8% in 2017, underpinned by strong domestic demand. Improvements in the global economic climate should also drive exports. Further moderation of headline inflation is also expected, with forecast range of 3.0% - 4.0% predicted for 2017 as a whole. Source: Bank Negara Malaysia Quarterly Bulletin

Page 5 MAJOR TRANSACTIONS AUGUST 2017 Sungai Penaga, Selangor Darul Ehsan Company : Sunway Berhad Type : Vacant Industrial Land Seller : Premier Place Property Sdn. Bhd.

80 acres) Transaction Price : RM 167,589,760 (RM 260 per sq.ft.) Date of Transaction : 01.08.2017 Remarks : In the immediate term, to be used by Sunway for warehouse and storage facilities.

5 Page 5 MAJOR TRANSACTIONS AUGUST 2017 Sungai Penaga, Selangor Darul Ehsan Company : Sunway Berhad Type : Vacant Industrial Land Seller : Premier Place Property Sdn. Bhd. Buyer : Sunway Supply Chain Enterprise Sdn. Bhd. Location : Off Persiaran Subang Permai, Sungai Penaga Details : 4 plots of freehold industrial land Land Area : 59, square metres (14.80 acres) Transaction Price : RM 167,589,760 (RM 260 per sq.ft.) Date of Transaction : Remarks : In the immediate term, to be used by Sunway for warehouse and storage facilities. In the medium term, to be redeveloped into a mixed use development. Kota Damansara, Petaling Jaya, Selangor Darul Ehsan Company : Paramount Corporation Berhad Type : School buildings Seller : Sri KDU Sdn. Bhd. Buyer : RHB Trustees Bhd as trustees for Alpha REIT Location : Jalan Teknologi 2/1, Kota Damansara Details : 3 plots of leasehold land erected with 4 school buildings Land Area : 48, square metres Gross Floor Area 17, square metres Transaction Price : RM 165,000,000 Date of Transaction : Remarks : Master agreement to sell property to trustee for RM165,000,000 with a triple net lease agreement from trustee for years Bandar Sunway, Petaling Jaya, Selangor Darul Ehsan Company : Sunway Berhad Type : 4-Star Hotel (401 rooms) Seller : Sunway Forum Hotel Sdn. Bhd. Buyer : RHB Trustees Bhd as trustees for Sunway REIT Location : Sunway Clio Hotel, Jalan PJS 11/15 Details : A plot of leasehold land erected with a 27-storey building with a lower ground floor Land area : 7, square metres Transaction Price : RM 340,000,000 (RM847, per room) Date of Transaction : Remarks : Lease agreement for hotel with Sunway Resort Hotel for years Lease agreement for car park with Sunway Leisure for 3+3 years

6 Page 6 Mont Kiara, Kuala Lumpur Company : Goh Ban Huat Berhad Type : Development land Seller : Puncak Melati Sdn Bhd. Buyer : GBH Land Sdn. Bhd. Location : 3 lots away from Amarin Kiara and Casa Kiara 2, presently no access roads Details : A plot of freehold development land Land area : 9, square metres Transaction Price : RM 39,526,990 (RM per sq.ft.) Date of Transaction : Remarks : To be developed when property market sentiments improve. Daerah Rompin, Pahang Darul Makmur Company : Far East Holdings Berhad Type : Agricultural land (Oil palm plantation) Seller : PHG Plantation Sdn. Bhd. Buyer : Far East Holdings Bhd. Location : H.S.(D) 480, P.T. No , Mukim of Keratong, Daerah of Rompin, State of Pahang Details : A plot of leasehold agricultural land planted with oil palm trees Land area : 12,970, square metres (3, acres) Transaction Price : RM 110,570,430 (RM 34,500 per acre) Date of Transaction : Remarks : The land was purchased together with 1 unit of bungalow, 6 units of semidetached houses, 12 units of terraced houses, 1 unit of administrative office, 1 unit of workshop together with the existing security entrance system and weighbridge The oil palm planted area are fully developed with 43% matured palms. Some vacant points are observed that need to be resupplied with new plants. Source: Bursa Malaysia This report and other research materials may be requested from us. Questions related to information herein should be directed to the Research Department at the number indicated above. This document has been prepared by Jordan Lee & Jaafar Sdn. Bhd. for general information only. Jordan Lee & Jaafar Sdn. Bhd. makes no guarantees, representation or warranties of any kind, expressed or implied, regarding the information including but not limited to, warranties of content, accuracy and reliability. Interested parties should undertake their own inquiries as to the accuracy of the information. Jordan Lee & Jaafar Sdn. Bhd. excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss or damages arising therefrom. Jordan Lee & Jaafar Monthly Bulletin August 2017 Issue Compiled & Edited by: Chin Shiow Wei & Ew Gene Wern Enquiries: research@jlj.com.my

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