SUNT E C RE IT Ac q uisitio n o f 50.0% inte re st in T wo Gra - PowerPoint PPT Presentation

SUNT E C RE IT Ac q uisitio n o f 50.0% inte re st in T wo Gra de A Offic e Building s with Anc illa ry Re ta il in Vic to ria , We st E nd, L o ndo n, Unite d K ing do m 12 No ve mb e r 2020

Conte nt 29 3 Unitho lde rs’ Appro va l a nd T ime line Ac q uisitio n Ove rvie w 32 7 Co nc lusio n Ra tio na le fo r E xpa nding into UK 35 14 Appe ndix Be ne fits to Unitho lde rs 26 F unding a nd F ina nc ia l I mpa c t 2

Ac quisition Ove r vie w

Ac quisition Ove r vie w Pro po se d a c q uisitio n o f 50.0% inte re st in No va No rth, • No va So uth a nd T he No va Building , c o mprising two hig h q ua lity multi-te na nte d o ffic e b uilding s with a nc illa ry re ta il de ve lo pme nt Stra te g ic a lly lo c a te d in Vic to ria , We st E nd • Ag re e d pro pe rty va lue o f £430.6 mil (~S$766.5 mil) 1 • NPI yie ld o f 4.6% 2 • 3 • DPU a c c re tio n: 2.3% • 100% c o mmitte d o c c upa nc y with lo ng we ig hte d ”) o f 11.1 ye a rs 4 a ve ra g e le a se e xpiry (“WAL E 2-ye a r g ua ra nte e o n re ta il inc o me • E xpe c te d c o mple tio n in De c e mb e r 2020 sub je c t to • Sunte c RE I T ’ s Unitho lde rs’ a ppro va l No te s: 1 Ba se d o n 50.0% inte re st a nd e xc ha ng e ra te o f £1 : S$1.78 2 Ba se d o n pa ssing inc o me a s a t 30 June 2020 divide d b y to ta l a c q uisitio n c o st o f £439.4 millio n (a ppro xima te ly S$782.1 millio n). 3 Illustra tive DPU a c c re tio n b a se d o n pro fo rma fina nc ia l e ffe c ts o f the a c q uisitio n fo r F Y2019, a s if the a c q uisitio n wa s c o mple te d o n 1 Ja nua ry 2019 a nd o n the a ssumptio n tha t the a c q uisitio n is funde d with a c o mb ina tio n o f de b t a nd pe rpe tua l se c uritie s. 4 Ba se d o n ne t le tta b le a re a a s a t 30 June 2020 4

Pr ope r ty Infor ma tion No va No rth, No va So uth a nd T he No va De sc r iption Build ing 1 (“No va Pro pe rtie s”) L e a se ho ld e xpiring o n 27 April 3062 T itle (1,042 ye a rs re ma ining ) 2016/ 2017 Ye ar of Comple tion £430.6 mil (S$766.5 mil) (1.2% d isc o unt to ind e pe nd e nt va lua tio n 3 o f ty Value 2 Agr e e d Pr ope r £436.0 mil (S$776.1 mil) 4.6% 4 NPI Yie ld De ve lope r / Asse t L a nd Se c uritie s (“L a nd se c ”) Manage r Offic e BRE E AM ra ting ‘ Ve ry Go o d ’ 5 Sustainability AM ra ting ‘ Go o d ’ 5 Re ta il BRE E mation 6 T e nanc y Infor Offic e Re tail T otal 480,292 78,811 Ne t L e ttable Ar e a 559,103 (85.9%) (14.1% ) (100%) (“NL A”) (sq ft) Committe d Oc c upanc y 7 100% 100% 100% 17 18 No. of te nants 35 We ighte d Ave r age L e ase 10.6 14.1 11.1 s) 7 E xpir y (“WAL E ”) (Ye ar No te s: 1 T he No va Building c o nsists o f re ta il units o n the g ro und flo o r a nd 170 re side ntia l units. While the a c q uisitio n inc lude s the g ro und le a se in re la tio n to the re side ntia l units, the 170 re side ntia l units a re e xc lude d fro m the tra nsa c tio n. 2 Ba se d o n 50.0% inte re st a nd e xc ha ng e ra te o f £1 : S$1.78 3 Inde pe nde nt va lua tio n c o nduc te d b y Jo ne s L a ng L a Sa lle L imite d da te d 1 Se pte mb e r 2020 4 Ba se d o n pa ssing inc o me a s a t 30 June 2020 divide d b y to ta l a c q uisitio n c o st 5 BRE E AM (Building Re se a rc h E sta b lishme nt E nviro nme nta l Asse ssme nt Me tho d) pro vide s inde pe nde nt c e rtific a tio n o f the susta ina b ility pe rfo rma nc e o f b uilding s 6 Ba se d o n 100% inte re st 7 Ba se d o n ne t le tta b le a re a a s a t 30 June 2020 5

Hig h Qua lity Gr a de A Pr ope r ty Distinc tive De sign Conte mpor ar y Offic e L obby Column F r e e F loor Plate s Var ie ty of Re tail Offe r ings Str ate gic F it with Sunte c RE IT ’s E xisting Por tfolio 6

Rationale for E xpanding into UK

Str ong F unda me ntals of the UK E c onomy Appr ox. U$0.6 tr illion in Home to highly F or e ign Dir e c t innovative fir ms and Inve stme nts be twe e n wor ld c lass sc ie nc e 2015 and 2019: One of and r e se ar c h base the top r e c ipie nts in E ur ope Offic e jobs in L ondon to UK e c onomy is inc r e ase by an the 2 nd lar ge st in ave r age of 1.1% E ur ope p.a. in ne xt 5 ye ar s Young and dynamic wor kfor c e with about 65% be twe e n 25 and 49 ye ar s old UK is a Highly Attr ac tive Inve stme nt De stination So urc e s: JL L Re se a rc h da te d Se pte mb e r 2020 a nd Sta tista 8

L ondon’s Comme r c ia l Pr ope r ty Ma r ke t Offic e L e a sing de ma nd CBD Offic e stoc k is the la rg e st suppo rte d b y L o ndo n’ s a mo ng st ke y E uro pe a n c itie s, a ttra c tive ne ss a s a g lo b a l pro viding liq uidity fo r hub fo r b usine sse s a nd inve stme nts ta le nt to c o nve rg e Prime re nts in We st E nd 9.0% Va c a nc y ra te to re ma in e xpe c te d to impro ve in the 130 8.0% 120 7.0% 6.0% 110 sta b le due to limite d me dium te rm unde rpinne d 5.0% 100 4.0% 90 3.0% 80 2.0% ne w supply b y limite d ne w supply a nd 1.0% 70 0.0% 2009 Q1 2009 Q3 2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q3 2016 Q1 2016 Q3 2017 Q1 2017 Q3 2018 Q1 2018 Q3 2019 Q1 2019 Q3 2020 Q1 2020 Q4 2022 Q4 2024 Q4 60 2020 Q3 (f) 2021 Q1 (f) 2021 Q3 (f) 2022 Q1 (f) 2022 Q3 (f) 2023 Q1 (f) 2023 Q3 (f) 2024 Q1 (f) 2024 Q3 (f) 2009 Q1 2009 Q3 2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q3 2016 Q1 2016 Q3 2017 Q1 2017 Q3 2018 Q1 2018 Q3 2019 Q1 2019 Q3 2020 Q1 2009- 2024E 2009- 2024E re c o ve ry o f e c o no my Pr ope r ty Mar ke t is E xpe c te d to be Re silie nt in the L ong T e r m So urc e : JL L Re se a rc h da te d Se pte mb e r 2020 9

Ce ntra l L ondon’s Prope rty Ma rke t Vac anc y Rate Pr ime Re nts (£/ sq ft pe r a nnum) 14.0% 140 12.0% 120 10.0% 100 8.0% 80 6.0% 60 4.0% 40 2.0% 20 0 0.0% 2009 2011 2013 2015 2017 2019 2021E 2023E 2009 2011 2013 2015 2017 2019 2021E 2023E We st E nd City E ast L ondon Ce ntr al L ondon 10-ye ar ave r age We st E nd City E ast L ondon We st E nd 10-ye ar ave r age Vac anc y Rate to Re main Stable due to Pr ime Re nts to Impr ove in the Me dium T e r m Unde r pinne d by L imite d Ne w Supply L imite d Ne w Supply and Re c ove r y of E c onomy So urc e : JL L Re se a rc h da te d Se pte mb e r 2020 10

F utur e of Offic e s Offic e Still Has A Ce ntr al Role Surve ys sho w tha t e mplo ye e s wa nt to wo rk a t ho me 1 to 2 d a ys pe r we e k • Offic e spa c e fa c ilita te s e sse ntia l fa c e -to -fa c e inte ra c tio ns tha t te c hno lo g y c a nno t re plic a te • YOUR TITLE 02 De - de nsific ation Green marketing is a practice whereby companies seek to go above and beyond traditional marketing by promoting. Mo re spa c e ne e d e d to ma inta in physic a l d ista nc ing • F ull Impac t of COVID- 19 Not Cle ar At T his Stage • Co mpa nie s a re still e va lua ting o ffic e spa c e ne e d s • Impa c t o n o ffic e d e ma nd will ha ve a la g g e d e ffe c t d ue to the typic a l lo ng le a se te nure o f a ppro x. 10 ye a rs YOUR TITLE 02 Green marketing is a practice whereby companies seek to go Re c ove r y of E c onomy in the L onge r T e r m Will Positive ly Impac t De mand above and beyond traditional marketing by promoting. for Offic e Spac e Green marketing is a practice whereby companies seek to go above and beyond traditional marketing by promoting. Green marketing is a practice whereby companies seek to go above and beyond traditional marketing by promoting. So urc e : JL L Re se a rc h da te d Se pte mb e r 2020 11

Ac quisition of Pr ime Gr a de A Asse t a t Attr a c tive Va lua tion Yie ld 1 of L ondon & Ke y E ur ope an Citie s L ondon 4.8% 2 4.6% 4.0% 4.0% 3.4% 3.3% 3.0% 2.9% 2.8% 2.7% 3 E ast L ondon Nova We st E nd City Madr id Stoc kholm Amste r dam F r ankfur t Par is Be r lin Pr ope r tie s Prime offic e yie ld R e spe c tive c ountr y's 10- ye ar g ovt. bond yie ld L ondon Cap Rate s Compar e F avour ably to E ur ope an Counte r par ts No te s: 1 Ba se d o n pa ssing inc o me , e xpre sse d a s a pe rc e nta g e o f c a pita l va lue , a fte r a dding no tio na l purc ha se r’ s c o sts 2 Ba se d o n pa ssing inc o me a s a t 30 June 2020 divide d b y to ta l a c q uisitio n c o st 3 Ba se d o n pro pe rty tra nsa c tio ns whic h we re mo re tha n £125 mil in va lue So urc e : JL L Re se a rc h da te d Se pte mb e r 2020 12