StarHub Green UNIQUE SUBURBAN OFFICE ASSET IN SINGAPORE

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1 StarHub Green UNIQUE SUBURBAN OFFICE ASSET IN SINGAPORE

2 2 StarHub Green As the exclusive selling agent, JLL is offering a 100% interest in the high profile suburban office asset known as StarHub Green, (the Property ) for sale via an Expressions of Interest campaign closing Wednesday 23 April Premium asset completed in 2008 to high specifications with an efficient layout

3 StarHub Green 3 Key Investment Highlights Rare opportunity to acquire a premium suburban office asset in Singapore Close to 100% occupied by a diverse range of blue chip tenants including StarHub, Stanley Black & Decker, IBM, Quest Laboratories and Alstom Weighted average lease expiry (WALE) of circa 7 years Credit anchor tenant: Starhub Ltd occupies 55% of NLA on a new 10 year lease with annual 2.5% fixed increments; Starhub is Singapore s 2nd largest, government owned telecommunications provider Under-rented: Potential to increase income, inplace rents are 15%-20% below market levels and forecast strengthening of the market in Modern design: Completed in 2008 to a high specification and efficient layout High quality tenant amenities, such as an 11,500 sq ft food court, childcare facility, premium lobby and recreational rooftop garden Awarded Green Mark Gold by BCA 1 StarHub Green will benefit from the ongoing trend of decentralisation of office space in Singapore. It is located within Paya Lebar, designated by the government as a key commercial hub Projected 2015 NOI is S$15.1 million with strong growth potential from market rent reversions and anchor lease indexation Highly accessible location: Adjacent to major expressways, bus interchanges, and nearby MacPherson MRT station, the interchange between the Circle and future Downtown Lines (2017 completion) 1 BCA Building and Construction Authority 7 year WALE including 10 year lease with StarHub at 2.5% annual indexation

4 4 StarHub Green Strong tenant demand with close to 100% occupancy and income growth potential through rental reversions

5 StarHub Green 5 Location AIRPORT ROAD UBI AVENUE 4 Changi Airport UBI AVENUE 3 Central Expressway (CTE) Orchard Road Orchard Road Central Expressway (CTE) PIE PIE Central Business District Dunearn Rd CTE CTE Bendemeer Road Nicoll Highway Marina Bay Sands KPE Upper Paya Lebar Road MacPherson Road Eeast Coast Parkway (ECP) 10 minutes to Singapore s CBD and 15 minutes to Changi Airport Eunos Link PIE Sims Avenue StarHub Green Kallang-Paya Lebar Expressway (KPE) KALLANG-PAYA LEBAR EXPRESSWAY (KPE) East Coast Road Eeast East Coast Coast Parkway Parkway (ECP) (ECP) Pipit Road PIE Upper Changi Road ECP MacPherson Station (Circle & Downtown Line) Paya Lebar Road Geylang East Central 2 mins walk Upper Changi Road East PIE Ubi Avenue 1 ECP Pan Island Expressway (PIE) Direct access to PIE Paya Lebar Station Airport Boulevard Singapore Post Head Office & Paya Lebar Centre Changi Coast Road Paya Lebar Commercial Hub Sims Avenue

6 6 StarHub Green Modern design with high quality tenant amenities

7 StarHub Green 7 Asset Overview StarHub Green is a modern 7-storey building comprising 405,386 sq ft of net lettable area (NLA) over two towers, a North and South Tower Income Projection S$ 000 Base Rental Revenue 17,399 Car Park 900 Other Income 13 Gross Operating Income 18,312 Outgoings (3,183) Net Operating Income 15,129 The Property is 97% occupied by a diverse mix of 20 tenants and provides a unique, secure and stable long term cash flow net operating income (NOI) is forecast to be circa S$15.1 million, growing to over S$17.7 million within 5 years. Address 67 Ubi Avenue 1, Singapore Year of Completion TOP issued 24 November 2008 Land Tenure 60 years leasehold (Expiry: 9 March 2057) Zoning Business 1 (B1) Land Area 177,541 sq ft Existing GFA 446,421 sq ft NLA 405,386 sq ft Car Parking 469 lots Occupancy 97% WALE 7 years by gross monthly income Green Mark Gold by Singapore s BCA Note: Figures in the tables above are as at 1 March 2014

8 8 StarHub Green Singapore Asia s leading business hub F Average CAGR/ Real GDP Growth 14.8% 5.2% 1.3% 3.7% 3.4% 5.7% Inflation 2.8% 5.3% 4.5% 2.4% 2.5% 3.5% Population (mill) % Unemployment 2.2% 2.0% 2.0% 1.9% 2.0% 2.0% Current Account Balance (% GDP) 26.8% 24.6% 18.6% 22.1% 21.5% 22.7% No. 1 city with the best investment potential 2, top 2 for 17 consecutive years, and world s easiest place to do business for the 7th year running 3 Elected most competitive city in Asia, and 2nd globally, thanks to its stable political environment, world-class infrastructure and strong economic fundamentals Singapore s economy grew at an average of 5.7% since Low unemployment rate and 3rd highest GDP per capita in the world 5 Stable currency: Positive current account balance and strong outlook with S$ forecasted to strengthen 4% against the US$ over the next 5 years 6 2 Source: 3 Source: World Bank Doing Business 2013 report 4 Source: Department of Statistics Singapore Source: IMF World Economic Outlook Database, October Source: Bloomberg Scarcity of land: Singapore is confined to an area smaller than London or Hong Kong

9 StarHub Green 9 Sale Process Expressions of Interest process & timetable This sales offering presents an exceptional opportunity for investors to acquire a high yielding asset with future upside potential through rental reversions. JLL is seeking non-binding Expressions of Interest (EOI) to acquire 100% of the Property either directly through an asset sale or indirectly via transfer of shares in the company owning the Property, closing Wedneday 23 April 2014 at 2pm (Singapore time). Please ensure your EOI clearly states (at a minimum): Pricing Conditions, if any Funding requirements Process and timing of Due Diligence Preference for sale of asset or shares in the SPV owning the asset All enquiries about the Property must be directed to JLL. All inspections of the Property must be arranged via prior appointment with JLL. Due diligence information Changes to the process The Vendor reserves the right not to accept any offer and, without limitation, nor is the Vendor obliged to accept the offer with the highest consideration. The Vendor may, in its absolute discretion, suspend or vary the sale process, negotiate with any party who submits an EOI or with any other person, enter into a binding contract with any party at any time and/or, at any time prior to exchange of binding contracts, may withdraw the Property from sale. No person is entitled to any redress against the Vendor if the Vendor exercises such discretion. The Vendor is not responsible for any costs or expenses incurred by any party in preparing and lodging an EOI or in taking part in the above process, whether or not the party is successful or whether or not the Vendor terminates, varies or suspends that process or takes any action available to the Vendor. No offer will be deemed or regarded to be accepted, unless and until, a binding contract for sale is entered into by the Vendor with the relevant party. To assist in the assessment of this offering, due diligence information is available via an online virtual data room (VDR) managed by JLL. Access to the data room will be granted by JLL upon request and signing of a CA. 23 April 2014 Non-binding EOI deadline

10 Contact Details Mr Stuart Crow CEA No: R021913H Mr Ashish Manchharam CEA No: R040279Z Mr Anthony Barr CEA No: R031105J Jones Lang LaSalle Property Consultants Pte Ltd CEA Licence No. L E COPYRIGHT JONES LANG LASALLE 2014 We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates for examples only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the Property and transaction.