Co.

Reg No: 198700034E MICA (P) : 099/03/2012

Singapore
THEREALDEALS Ins&OutsofSingaporeRealEstate
19 July 2012

Poisoning the Apple a tale of strata-titled industrial properties

Underpinned by Additional Buyers Stamp Duty restrictions on private residential property, Singapores industrial projects have seen a wave of demand from investors seeking alternative investments in the property space. However, the government was quick to poison this apple and tightened guidelines for industrial sales, so as to subdue investment (and perhaps speculative) demand in yet another segment of the property market. In June, MTI announced a halving of the maximum tenure for industrial sites under its land sales programme to 30 years, whilst strata-titled units must have a stipulated unit size of over 1,615 sq ft. Larger sites such as Sunview Road, Serangoon North Avenue 5, Woodlands Avenue 10, Buroh Street, Ubi Avenue 4 and Tuas South Avenue 5, which all received 30 years tenure, are likely to be the eventual targets for developers, while those with a shorter tenure are more tailored for industrialists. In addition to tightening regulations, the government proceeded to offer a total of 47.69ha of land, 1.4x more than last year, in the 2H12 land sales programme, some of which are rolled over from 1H12 land sales. One step forward, two steps back. Investors that have been focused on the industrial sector may now think twice before investing in such strata units. By reducing land tenure, the government is making a conscious effort to moderate land prices and thereby creating a spillover effect of lowering rental costs for end-users, or reducing land costs for owner-occupiers. The measures will also have a secondary effect of combating misuse of industrial sites. While this may not be a direct hit to users abusing the units intended use, it serves as a warning that the government is aware of the goings-on in the industrial sector. However, cutting land tenures could depress investor demand going forward and backfire on the policys intended purpose. Halved tenure inevitably signifies higher amortisation on construction costs. Smaller investors may find it difficult to obtain bank financing, while large investors such as REITs may not view the released sites as viable investment options, given the tenure may not match with its investment horizon. Lastly, reduced land prices may not translate to lower rental, as tenants do not normally rent depending on the underlying tenure, but on the sites size and location. Although this could dampen demand for the Government Land Sales sites, it has created a thriving selling point for newly-launched projects and the secondary market. For example, a new freehold industrial plot at the junction of Sims Drive and Lorong 17 Geylang has been put on sale for an indicative price of SGD4850m. The 34,912.7 sq ft site is asking for SGD550-573 psf ppr. We estimate the breakeven cost to be between SGD814-839psf, with an ASP of SGD1,000-1,200psf. The site is zoned for Business 1 uses, which falls under the category of light and clean industries. To date, only a handful of newly-launched freehold sites have achieved ASPs above SGD1,000psf.
Figure 1: Confirmed List of 2H12 Government Land Sales Programme No. Location Site Area (Ha) 1 Plot 26, Tuas South St 7 1.01 2 Plot 31, Tuas South St 6 0.86 3 Plot 12, Tuas South St 8 0.46 4 Sunview Road 2.76 5 Plot 14, Tuas South St 8 0.3 6 Plot 16, Tuas South St 8 0.3 7 Serangoon North Avenue 5 0.76 8 Plot 8, Tuas South St 8 0.3 9 Plot 18, Tuas South St 8 0.46 10 Woodlands Ave 10 1.1 11 Plot 30, Tuas South St 6 0.86 12 Plot 32, Tuas South St 6 0.87 13 Buroh Street 2.7 14 Plot 10, Tuas South St 8 0.3 15 Ubi Ave 4 0.35 16 Tuas South Ave 5 3.96 17.35 Source: MTI GPR 1 1 1 2 1 1 2.5 1 1 2.5 1 1 1.4 1 2.5 1.4 Zone 2 2 2 2 2 2 1 2 2 2 2 2 2 2 1 2 Tenure 22 22 22 30 22 22 30 22 22 30 22 22 30 22 30 30 Est. date Jul Jul Aug Aug Sept Sept Sept Oct Oct Oct Nov Nov Nov Dec Dec Dec

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

 HE EAL EALS Ins&OutsofSingaporeRealEstate

Origins of the industrial boom

JTCs divestment in industrial properties initiated in 2005. Founded in 1968, JTCs role was vital in the industrialisation of Singapore, emphasising the development of facilities for the advancement of the technology and other capital-intensive industries. In 2000, the introduction of the Industrial Government Land Sale programme saw the private sector play a much larger role, partaking in over 70% of the market sales. In 2005, JTC announced that it was retreating from its role as a developer of ready-built industrial facilities to make room for more private sector participation. The divestment of its industrial portfolio was carried out in two phases first via a private trust sponsored by Mapletree Investment and Ascendas Group, and secondly through trade sales. Essentially, Singapores largest industrial landlord had assumed a backroom role, and allowed private developers to fill the void. Repercussions of JTCs divestment. JTC previously offered subsidised rentals of around 20% below prevailing market rates to SMEs. Now that its remaining properties have been divested to private entities, SMEs no longer enjoy subsidised rates, and are subject to market rates. With no benchmark and a limited stock of industrial units in Singapore, market rents are now allowed to rise (and fall) freely. Clampdown of residential sector. As early as 2009, a number of developers had diverged into the industrial market after the first set of cooling measures descended on the residential sector. A rising amount of capital deployed and increasing competition is directly reflected in the three Woodland Avenue 12 sites sold from 20102011. The first site was sold for SGD75psf in Apr 2009, the second doubled to SGD152psf in Jun 2011 and the last transaction price was at SGD142psf in Sept 2011. Industrial projects require less initial investment than residential sites, hence attracting small developers eager to get a slice of the strata-titled industrial properties.
Figure 2: Past industrial site transactions since 2010 Date of Location Zone Site Area (m2) Award B2 13,072 19-Jun-12 Kaki Bukit Rd 5 / Kaki Bukit Ave 6 B1 6,312 12-Apr-12 Sims Drive / Aljunied Rd B2 19,619 5-Dec-11 Soon Lee St B1 21,427 22-Nov-11 Gambas Ave / Gambas Cresc B2 25,960 27-Oct-11 Kaki Bukit Road 4 B1 18,800 19-Sep-11 Woodlands Ave 12 (Parcel 3) B2 17,040 18-Jul-11 Pioneer Rd North / Soon Lee St B2 4,353 5-Jul-11 Tuas View Square B1 20,596 30-Jun-11 Woodlands Ave 12 (Parcel 2) B1 - white 28-Jun-11 Irving Place 3,353 B1 27,953 31-Mar-11 Ang Mo Kio St 62 B2 24,515 2-Mar-11 Kaki Bukit Road 4 B2 14,439 7-Dec-10 Pioneer Rd North / Soon Lee St B2 30,020 17-Sep-10 Kaki Bukit Avenue 4 B1 34,853 17-Aug-10 Ubi Road 1 B1 32,279 27-Apr-10 Woodlands Ave 12 B1 14,259 16-Apr-10 Yishun Ave 6 (Parcel 8) B1 14,193 9-Apr-10 Yishun Ave 6 (Parcel 1)
Source: URA

Developer Hock Lian Seng Fragrance Biz. KNG Group HLS Dev NSS Properties OKH Dev KNG Properties. SCB Terraform OKH Dev Oxley Vista Sim Lian Dev Soon Hock Realty Kng Land Wee Hur Dev Oxley Rising Boon Keng Dev Soilbuild Group OKH Management

Tender $
(SGD m)

PSF
(SGD)

Lease
(Yr)

27.3 43.4 48.1 78.2 66.0 71.8 63.5 7.3 84.2 43.4 128.1 41.4 26.9 76.8 158.1 65.2 29.3 27.2

139 255 114 136 118 142 176 174 152 343 170 157 87 95 169 75 76 71

30 60 30 60 30 60 30 45 60 60 60 30 30 60 60 60 60 60

19 July 2012

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 HE EAL EALS Ins&OutsofSingaporeRealEstate

AZ @ Paya Lebar
Figure 3: Postal district vs. rental yield ASP Rental Yield Postal District (SGD psf) (%) 3 633.7 3.6% 5 495.1 3.9% 8 484.0 3.5% 12 435.3 4.0% 13 604.2 2.8% 14 485.5 3.8% 16 207.5 11.9% 17 182.8 8.9% 19 505.8 3.6% 20 463.2 3.9% 22 275.2 7.2% 23 343.3 5.5% 25 225.0 7.4% 26 537.0 3.1% 27 260.3 6.5%
Source: URA

Figure 4: Paya Lebar Road 3-mth average rental ASP Avg Rental (SGD) (Pm psf) 836 2.2 Lowest selling prices 972 2.2 Average selling prices 1,547 2.2 Highest selling prices
Source: URA

Rental Yield (%) 3.2% 2.8% 1.7%

AZ @ Paya Lebar is a freehold project recently launched by Ascendas Group. It is zoned for Business 1 use, which includes light and clean trade, within the vicinity of housing estates. The site is located in Ubi Industrial Estate and is directly opposite MacPherson MRT. Unit sizes range from 980-2,498 sq ft. This site has set record prices, with ground floor units selling from SGD1,700 to SGD2,100psf, while the upper-floors are selling for SG1,110psf on average. As of Jun 2012, 103 out of 201 units have been sold, implying a take-up rate of 51%. In terms of rentals, we find that based on the average 3-mth rental of SGD2.2 pm psf on Paya Lebar Road & Upper Paya Lebar Road, which translates to a rental yield of 2.8%.
Figure 6: Recently launched freehold titled projects Name Arcsphere @ Aljunied Atrix @ Aljunied Bizhub 28 @ Chai Chee Novelty Bizcentre Eldix M-Space AZ @ Paya Lebar M38 @ Jalan Pemimpin
Source: Colliers International

Developer Oxley Sims Pte Hafary Pte Pte Aston Inv Pte Novelty Dev Pte EL Development Lian Beng Ascendas Pte Mavern Pte

Tenure Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold

Zone B1 B1 B1 B1 B2 B2 B1 B1

No. of units 19 59 60 85 169 141 201 72

Expected TOP 4Q15 4Q13 4Q13 4Q14 2014 2Q13 1Q14 2Q15

Avg. Unit Size 947-1,679 1,097-2,550 1,956 1,033-2,293 1,388-1,862 1,000-1,800 979-2,497 1,636-3,229

$psf 950-980 700 600 800-900 440-530 580-680 900-1100 850-900

Figure: 7: Artiste impression of AZ @ Paya Lebar

Source: corporate vision

19 July 2012

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 HE EAL EALS Ins&OutsofSingaporeRealEstate

MARKET SNAPSHOT
Property Price Indices
Index SRPI Overall (Mar 12) URA PPI (1Q12) HDB Resale (1Q12) Level 165.4 206.0 191.0 Change +0.8% -0.1% +0.6% Reserve List

19 July 2012
Analyst: Alison FOK 65-6433 5745 alisonfok@kimeng.com

Site Jalan Jurong Kechil Stirling Road Tampines Av 10 (Parcel B) Farrer Rd Kim Tian Road

Site area (Ha) 1.0 2.1 1.7 0.8 0.6 2.4 1.7 0.8 0.9 2.3 1.6 1.9 2.7

Units 240 1045 515 40 500 600 na 265 495 680 470 600 595

Status Available Available Available Available Available Available Available App accepted* Avail. in Sept Avail. in Oct Avail. in Oct Avail. in Nov Avail. in Dec

Government Land Sales (GLS)

Recently Awarded Sites
Site Fernvale Lane (EC) Elias Rd/ Pasir Ris Dr 3 Woodlands Ave 5/ Woodlands Dr 16 (EC) Tampines Central 7/ Tampines Ave 7/ Tampines Av 9 (EC) Sengkang Square/ Compassvale Drive Tampines Avenue 10 (Parcel A) Boon Lay Way (Jurong Gateway) Pasir Ris Drive 3/ Pasir Ris Drive 10 Buangkok Drive/ Sengkang Central Pheng Geck Avenue (Parcel B) Units 770 295 720 580 710 600 590 495 620 200 Awarded Peak Living Pte Elitist Dev. Hao Yuan Inv. Singxpress, Creative Inv, Kay Lim EL Dev. F.E Lakeside Pte MCL Land Capital Dev. White Haven Prop. Santarli Corp. Land price (S$m) 245 166 247 234 383 253 370 210 301 115 $psf ppr 296 461 318 374 528 418 706 417 508 202

Prince Charles Crescent Sengkang West Way Tai Thong Crescent (Parcel C) Alexandra Road/ Alexandra View (Parcel B) Tampines Avenue 10 (Parcel C) Tampines Avenue 10 (Parcel D) Jurong West Street 41/ Boon Lay Way (Parcel B) New Upper Changi Road / Bedok South Avenue 3 (Parcel B)

Source: HDB, URA *to be launched in two weeks (11-Jul)

Collective sales
Pending for offer
Site 1 Surin Avenue & Upper Serangoon Road (Singapore Crocodile Farm) Chancery Garden Kismis Lodge Land Area(k Sqm) 4.0 2.7 6.5 Land Price (S$m) 40 45 90-95 $psf ppr 934 1527 12811352 Land price (S$m) 77.5 132 106 74 Tender closes 15-Aug 23-Aug 15-Aug

Confirmed List
Site Tanah Merah Kechil Road/ Tanah Perah Kechil Link Bright Hill Drive Punggol Way/ Punggol Walk (EC) Dairy Farm Road Woodlands Avenue 6/ Woodlands Drive 16 (EC) New Upper Changi Road/ Bedok Road (Parcel A) Sengkang West Way/ Fernvale Link (Parcel B) (EC) Pasir Ris Drive 3/ Pasir Ris Rise (EC) Bishan Street 14 Sembawang Crescent/ Sembawang Drive (EC) Punggol Field Walk/ Punggol East (EC) Ang Mo Kio Avenue 2/ Ang Mo Kio Street 13 Jurong West Street 41/ Boon Lay Way (Parcel A) Commonwealth Avenue Source: HDB, URA *last day of Tender Site area (Ha) 1.4 1.3 1.9 1.8 1.7 3.2 1.4 2.8 1.1 2.3 1.5 1.8 2.2 1.2 Est. Launch Units date 415 405 560 390 465 540 420 590 645 650 435 680 825 700 31-Jul* 7-Aug* Jul-12 Jul-12 Aug-12 Aug-12 Sept-12 Sept-12 Oct-12 Oct-12 Oct-12 Nov-12 Nov-12 Dec-12

Successful en-blocs
Site Westvale Novena Ville Jade Towers Bartley Grove Awarded to Roxy Pacific Fragrance Group Roxy Pacific Top Global Land area(k sqm) 5.8 4.7 8.6 6.1 $psf ppr 883 1730 807 810

Property Stocks
Disc to Company Price RNAV RNAV CapitaLand 2.96 5.03 -41% City Dev 11.9 12.62 -6% Guocoland 1.7 NA NA Ho Bee 1.225 2.98 -59% Keppel land 3.48 5.78 -40% OUE 2.39 NA NA SC Global 0.975 3.71 -74% Singapore Land 5.97 9.71 -39% UIC 2.78 NA NA UOL 5.1 NA NA Wheelock 1.83 NA NA Wing Tai 1.38 2.81 -51% N.A. = No Coverage *As at latest reported NAV /share 3.66 7.66 2.15 2.34 3.81 3.53 1.56 11.78 3.16 6.49 2.35 2.51 Disc/ Prem to NAV -19% 55% -21% -48% -9% -32% -38% -49% -12% -21% -22% -45%

19 July 2012

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 HE EAL EALS Ins&OutsofSingaporeRealEstate

MARKET SNAPSHOT(CONTD)
Primary Market
Total no. of units Units sold todate Takeup rate (%) 53% 99% 30% 18% 57% 56% 25% 92% 14% 94% 76% 74% 100% 68% 48% 67% 80% 84% 65% 71% 75% 82% 89% 43% 61% 48% 89% 98% 64% 95% 92% 82% 62% 100% 46% 92% 49% 81% 75% 35% 90% 74% 93%
Units sold (Jun)

19 July 2012
Analyst: Alison FOK 65-6433 5745 alisonfok@kimeng.com

Secondary Market
District City & Southwest Orchard/Tanglin/Holland Newton/Bukit Timah/Clementi Balestier/MacPherson/Geylang East Coast Changi/Pasir Ris Serangoon/Thomson West North Source: URA $psf Apr12 1,437 1,817 1,279 978 1,055 805 887 899 768 $psf May12 1,547 1,931 1,396 1,286 1,234 873 1,142 877 944 MoM % change 7.7 6.3 9.2 31.5 17.0 8.5 28.8 -2.4 22.9

Median

($psf) 1,451 2,042 1,459 2,045 1,992 1,312 1,381 1,302 1,361 1,052 1,089 1,289 1,428 906 735 812 908 879 1163 906 903 910 746 835 820 1,274 1,204 742 1,086 1,243 1,267 871 869 761 1,142 702 1,218 485 1,313 706 813 836 869

City & Southwest (1-8) Seahill 454 241 Orchard/Tanglin/Holland (9-10) 1919 75 74 D'Leedon 1715 507 Stellar RV 120 21 Newton / Bukit Timah / Clementi (11,21) 8 Bassein 74 42 Balestier / MacPherson / Geylang (12-14) Tropika East 105 59 Eight Riversuites 862 219 Ness 62 57 M66 70 10 Vacanza @ East 473 444 East Coast (15-16) Archipelago 577 437 Flamingo Valley 393 292 Shiro 16 16 Changi / Pasir Ris (17-18) Sea Esta 376 255 Watercolours (EC) 416 201 Tampines Trilliant (EC) 670 450 The Palette 892 714 Ripple Bay 679 568 My Manhattan 301 197 Palm Isles 429 306 Hedges Park Condo 501 377 Seastrand 473 388 Arc at Tampines (EC) 574 513 Serangoon / Thomson (19-20) River Isles 610 263 Flo Residences 530 324 Bartley Residences 702 337 164 146 The Promenade @ Pelikat Twin Waterfalls The Luxurie Cardiff Residence
Vibes@ Upper Serangoon

24 74 9 8 12 59 31 12 10 7 30 24 8 255 201 50 44 19 18 14 7 7 6 263 62 31 20 19 18 12 10 9 22 19 18 12 11 10 29 13 12 11

Rental Market
District City & Southwest Orchard/Tanglin/Holland Newton/Bukit Timah/Clementi Balestier/MacPherson/Geylang East Coast Changi/Pasir Ris Serangoon/Thomson West North Source: URA $psf pm Apr12 4.6 4.5 3.5 3.1 3.2 2.7 3.1 2.8 2.6 $psf pm May12 4.7 4.4 3.4 3.3 3.1 2.7 2.8 2.9 2.5 MoM % change 2.8 -3.3 -3.9 5.8 -2.2 1.1 -8.5 3.9 -3.2

Top 5 Resale Transactions by $psf

Project Scotts Square The Orchard Residences Hilltops Twentyone Angullia Park The Scotts Tower Source: URA Tenure Freehold 99 Yr fm 06 Freehold Freehold 103 Yr fm 10 District 9 9 9 9 9 $psf 4,566 4,399 4,398 4,353 3,811

Bottom 5 Resale Transactions by $psf

Project Fuyong Estate The Shaughnessy The Woods Lighthouse Mount Sinai Source: URA Tenure 99 Yr fm '47 99 Yr fm '01 99 Yr fm '10 99 Yr fm '93 999 Yr fm 1885 District 23 27 22 17 10 $psf 294 451 472 481 484

Parc Vera Riversound Residence West (22-24) The Rainforest (EC) Hillsta Blossom Residences (EC) Foresque Residences The Woods Natura@Hillview North (25-28) 1 Canberra (EC) Eight Courtyards The Nautical Miltonia Residences Source: URA

728 622 163 60 452 590 466 416 602 496 93 193 665 654 435 410

714 396 155 55 370 365 464 190 552 244 75 145 235 589 322 381

19 July 2012

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 HE EAL EALS Ins&OutsofSingaporeRealEstate

DEVELOPERS LANDBANK
Developer District 1 3 6 9 10 10 10 10 11 17 18 18 18 18 19 19 19 19 23 23 Sentosa Landbank

19 July 2012
Analyst: Alison FOK 65-6433 5745 alisonfok@kimeng.com

Tenure 99 99 99 Freehold Freehold Freehold Freehold Freehold Freehold 99 99 99 99 Freehold 99 99 99 99 99 99 99 Freehold

Unsold Units 20 560 118 122 203 178 1 156 5 124 178 624 893 605 131 395 785 90 2 50 207 5,447

City Dev

One Shenton (Marina Bay) Alexandra Road GLS site (Alexandra Road) South Beach (Beach Road) Futura (Leonie Road) Boulevard Hotel (Cuscaden Road) Lucky Tower (Grange Road) Volari (Balmoral Road) Nouvel 18 (Anderson Road) Buckley Classique (Buckley Road) Hedges Park (Flora Road) The Palette (Pasir Ris) NV Residences (Pasir Ris) Pasir Ris Drive 8 (Pasir Ris) Tampines/Upp Changi Rd North (Tampines/Upp Changi Rd North) H2O Residences (Sengkang West Ave) Bartley Residences (Bartley Road) Mount Vernon GLS site (Bartley Road) Serangoon Garden Way (Serangoon Garden Way) The Rainforest (EC) (Choa Chu Kang Drive) Blossom Residences (EC) (Segar Road) Residences at W (Sentosa Cove) 15, 19 & 21 Swiss Road (Swiss Club Road) Total Unsold Units Marina Bay Suites (Marina Bay) Keppel & GE Towers site (Tanjong Pagar) Reflections at Keppel Bay (Keppel Bay) Keppel Bay Plot 3 (Keppel Bay) Keppel Bay Plot 4 (Keppel Bay) Keppel Bay Plot 6 (Keppel Bay) The Luxurie (Sengkang Square) Total Unsold Units The Interlace (Gillman Heights) Urban Resort (Cairnhill Rd) Orchard Residences (Orchard Road) Wharf Residence (Tong Watt Road) D'Leedon (Farrer Rd) The Nassim (Nassim Rd) Marine Point (Marine Parade) Bedok Residences (Bedok Central) Sky Habitat (Bishan Street 14) Yio Chu Kang site (Yio Chu Kang Rd) Total Unsold Units

KepLand

1 2 4 4 4 4 19

99yr Freehold 99yr 99yr 99yr 99yr 99yr

52 620 276 307 234 94 226 1,809 309 39 14 5 1,208 55 150 68 384 140 2,372 110 357 6 473

CapitaLand

3 9 9 9 10 10 15 16 20 26

99Yr Freehold 99Yr 999Yr 99Yr Freehold Freehold 99Yr 99Yr Freehold

Ho Bee

Sentosa Sentosa 11

Seascape at Sentosa Cove (Sentosa Cove) Pinnacle at Sentosa Cove (Sentosa Cove) Trilight (Newton Road) Total Unsold Units

99yr 99yr 99Yr

UOL

2 16

Spottiswoode Residences (Spottiswoode Park) Archipelago (Bedok Reservoir Rd) Total Unsold Units Skysuites @ Anson (Enggor Street) The Surrento (West Coast Road) RV Residences (River Valley) Holland Residences (Taman Warna) Riverbay (Mar Thorma Rd) Riviera 38 (Mar Thorma Rd) The Cascadia (Bukit Timah Road) Pavilion Park (Phase 1D) (Bukit Batok Road) Pavilion Park (Phase 2) (Bukit Batok Road) Total Unsold Units Scotts Square (Scotts Road) Ardmore 3 (Ardmore Park) Total Unsold Units

Freehold 99yr

33 170 203 174 131 248 5 147 36 20 2 79 842 72 84 156

Allgreen

2 5 9 10 12 12 21 23 23

99Yr Freehold 999Yr Freehold 999Yr 999Yr Freehold Freehold Freehold

Wheelock

9 10

Freehold Freehold

19 July 2012

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 HE EAL EALS Ins&OutsofSingaporeRealEstate

DEVELOPERS LANDBANK (CONTD)

Developer District 2 9 10 10 26 Landbank Guocoland

19 July 2012
Analyst: Alison FOK 65-6433 5745 alisonfok@kimeng.com

Tenure 99Yr Freehold 99Yr Freehold Freehold

Unsold Units 500 2 381 76 30 989 58 49 24 88 221 80 232 68 820 249 101 19 595 85 123 103 49 14 65 1,403 9 64 38 42 157 27 252 156 745 32 70 65 23 111 590 891 35 203 22 35 50 31 376

Tanjong Pagar GLS white site (Peck Seah / Choon Guan) Sophia Residence (Mount Sophia) Leedon Residence (Leedon Heights) Goodwood Residence (Bukit Timah Road) The Waterline (Yio Chu Kang Rd) Total Unsold Units Skyline Residences (Telok Blangah) The Vermont on Cairnhill (Cairnhill Rd) Paterson Suites (Paterson Rd) Paterson Suites II (Paterson Rd) St Thomas Walk (St Thomas Walk) Watercove Villes (Wak Hassan Drive) Nim Road (Nim Road) Luxus Hills (Seletar Green) Total Unsold Units

Bt Sembawang

4 9 9 9 9 27 28 28

Freehold Freehold Freehold Freehold Freehold Freehold Freehold 999yr

Frasers Centrepoint

9 15 16 16 18 18 19 19 19 27

Starhub Centre (Cuppage Rd) Flamingo Valley (Siglap Rd) Waterfront Isle (Bedok Reservoir Rd) Bedok South GLS site (Bedok South Avenue 3) Seastrand (Pasir Ris Drive 3) Palm Isles (Flora Drive) Boathouse Residences (Hougang) Watertown (Punggol) Twin Waterfalls (Punggol Way / Punggol Field) Eight Courtyards (Yishun Ave 2) Total Unsold Units Ascentia Sky (Redhill) HELIOS Residence (Cairnhill Circle) Belle Vue Residences (Oxley Walk) Le Nouvel Ardmore (Ardmore Park) Anderson 18 (Ardmore Park) L'VIV (Newton Rd) Foresque Residences (Petir Road) Nouvel 18 (Anderson Road) Total Unsold Units

99yr Freehold 99yr 99yr 99yr 99yr 99yr 99yr 99yr 99yr

Wing Tai

3 9 9 10 10 11 23 10

99yr Freehold Freehold Freehold Freehold Freehold 99yr Freehold

MCL Land

11 10 15 16 17 22

Palms @ Sixth Avenue (Six Avenue ) NOB Hill (Ewe Boon Rd) Casa Nassau (East Coast Rd) Uber 388 (Upper East Cost) Ripple Bay (Jalan Loyang Besar) Boon Lay (Jurong East) Total Unsold Units

Freehold Freehold Freehold Freehold 99Yr 99Yr

SC Global

9 9 9 9 10 Sentosa

The Marq (Paterson Hill) Hilltops (Cairnhill Circle) Martin No. 38 (Martin Rd) Sculptura Ardmore (Ardmore Park) The Ardmore (Ardmore Park) Seven Palms (Sentosa Cove) Total Unsold Units

Freehold Freehold Freehold Freehold Freehold 99Yr

Grand Total Source:HDB,URA

16496

19 July 2012

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 HE EAL EALS Ins&OutsofSingaporeRealEstate

APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES
DISCLAIMERS This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate and that each securitys price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from the relevant jurisdictions stock exchange in the equity analysis. Accordingly, investors returns may be less than the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report. The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank Investment Bank Berhad, its subsidiary and affiliates (collectively, MKE) and consequently no representation is made as to the accuracy or completeness of this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connected parties and/or employees (collectively, Representatives) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice. This report may contain forward looking statements which are often but not always identified by the use of words such as anticipate, believe, estimate, intend, plan, expect, forecast, predict and project and statements that an event or result may, will, can, should, could or might occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events. MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law, from time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit business from such issuers, and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. MKE may, to the extent permitted by law, act upon or use the information presented herein, or the research or analysis on which they are based, before the material is published. One or more directors, officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report. This report is prepared for the use of MKEs clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for the actions of third parties in this respect. This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. This report is for distribution only under such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report. Malaysia Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis. Singapore This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (Maybank KERPL) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), Maybank KERPL shall be legally liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law. Thailand The disclosure of the survey result of the Thai Institute of Directors Association (IOD) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information.The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. Maybank Kim Eng Securities (Thailand) Public Company Limited (MBKET) does not confirm nor certify the accuracy of such survey result. Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of MBKET. MBKET accepts no liability whatsoever for the actions of third parties in this respect. US This research report prepared by MKE is distributed in the United States (US) to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (Maybank KESUSA), a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in the US shall be borne by Maybank KESUSA. All resulting transactions by a US person or entity should be effected through a registered broker-dealer in the US. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investments to you under relevant legislation and regulations. UK This document is being distributed by Maybank Kim Eng Securities (London) Ltd (Maybank KESL) which is authorized and regulated, by the Financial Services Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.

19 July 2012

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 HE EAL EALS Ins&OutsofSingaporeRealEstate

DISCLOSURES
Legal Entities Disclosures Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938-H) which is a Participating Organization of Bursa Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This material is issued and distributed in Singapore by Maybank KERPL (Co. Reg No 197201256N) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Kim Eng Securities (PTKES) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK. Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission.Philippines:MATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange Commission. Vietnam: Kim Eng Vietnam Securities Company (KEVS) (License Number: 71/UBCK-GP) is licensed under the StateSecuritiesCommission of Vietnam.Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited (KESI) is a participant of the National Stock Exchange of India Limited (Reg No: INF/INB 231452435) and the Bombay Stock Exchange (Reg. No. INF/INB 011452431) and is regulated by Securities and Exchange Board of India. KESI is also registered with SEBI as Category 1 Merchant Banker (Reg. No. INM 000011708) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA Broker ID 27861. UK: Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Services Authority.

Disclosure of Interest
Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and other services for or relating to those companies. Singapore: As of 19 July 2012, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report. Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report. Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under Paragraph 16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission. As of 19 July 2012, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report. MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in relation to the investment concerned or a related investment.

OTHERS
Analyst Certification of Independence The views expressed in this research report accurately reflect the analysts personal views about any and all of the subject securities or issuers; and no part of the research analysts compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report. Reminder Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and consult with its own professional advisers as to the risks involved in making such a purchase. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.

Stephanie Wong CEO, Maybank Kim Eng Research

19 July 2012

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