Sabana Shari ah Compliant Industrial REIT. Kevin Xayaraj Tay, CEO, Sabana Real Estate Investment Management Pte Ltd

Transcription

1 Sabana Shari ah Compliant Industrial REIT Kevin Xayaraj Tay, CEO, Sabana Real Estate Investment Management Pte Ltd

2 What is Sabana REIT World s largest listed Shari ah Compliant REIT First listed REIT globally to adopt stricter GCCstandard Shari ah Compliance IPO Deal of the Year Real Estate Deal of the Year First Shari ah Compliant Certified REIT in Singapore Largest IPO free float for Singapore industrial REITs Most Innovative Islamic Deal Best Deal for Singapore Access to untapped equity markets (e.g. Bahrain and Jordan) Sabana REIT included in MSCI Global Small Cap Indices from 1 June 2011 page 2

3 Sabana Shari ah Compliant REIT In The Press It is rare for the global mutual fund operator (Fidelity) to come in as a cornerstone in IPOs, both in Asia and globally...the strong interest among Islamic investors was not surprising FinanceAsia, 22 Nov 10 Sabana REIT has advantage over conventional REITs, with access to investors from both Shari ah and conventional markets. The growth in the Islamic finance industry globally...will translate to an increase in demand for Shari ah compliant financial products. Bloomberg, 22 Nov 10 A template for Islamic REITs The Asset, Jan 11 page 3

4 1st Shari ah compliant REIT listed in Singapore Islamic financing is on the rise, leading to potential additional source of capital and increased liquidity. The current volume of Islamic banking is USD 1.2 trillion 1st Conventional REIT investors attracted by quality portfolio, strong management and attractive distribution yield 1 st fully certified Shari ah compliant REIT in Singapore Demand + Additional source of capital Only opportunity for Shari ah investors to gain exposure to the S-REIT sector to potentially underpin ongoing demand Sabana REIT will maintain its Shari ah compliance without incurring significant compliance costs attractive distribution yield is maintained Due to its widening acceptance and its appeal as a means for ethical investment, the industry is expected to continue growing at twice the pace of its conventional counterpart. As such, surveys estimate that the industry will soon cross the US$1 trillion mark in total assets. Mr Lim Hng Kiang Minister for Trade and Industry and Deputy Chairman, Monetary Authority of Singapore 14 Jun 2010 (2) Notes: 1. Islamic Finance and Banking : 17th Commonwealth Law Conference 2. Opening address at the first Annual World Islamic Banking Conference: Asia Summit 2010 page 4

5 Rationale for a Shari ah Compliant REIT Unprecedented access to unique investor base New source of capital Key differentiator Most industrial assets are inherently Shari ah Compliant IPO demand by geography IPO cornerstone investors Asia 65% Middle East 25% Europe 10% Conventional 53% Middle East 47% page 5

6 Why Invest in Singapore s 1 st Certified Shari ah Compliant REIT Attractive and stable distribution yield Compelling >9% distribution yield (1) comparable to best-in-class peers Carefully selected premium quality portfolio Carefully selected premium portfolio with focus in specialty high-tech industrial and scarce chemical logistics sub-sectors Experienced and professional management team True independent management team with true performance-based management fee to align unitholder interests Future growth Proven acquisition track record through carefully cultivated vendor relationships Flexible capital structure Optimal capital structure with ample debt headroom to fund future acquisitions Note: (1)Based on 1QFY2011 results as at 31 March 2011 page 6

7 Experienced Management with Demonstrated Acquisition Ability Experienced management team with substantial experience in the industrial property market and demonstrated track record of sourcing and securing quality 3rd party assets Sabana s initial portfolio filtering process... 4Q 2009 Incorporation of Blackwood Investment Pte. Ltd. Commenced sourcing of properties Initial market review...resulted in the following key vendors and lessees City Developments Limited 1Q Q 2010 Establishment of Sabana Real Estate Investment Management Pte. Ltd. Identified portfolio of assets with value of S$300m Commenced negotiations and due diligence Commenced signing of option agreements Identified portfolio of assets with value ofs$600m 800m Screening Due diligence Freight Links Express Holdings Limited Utraco Greentech Pte. Ltd. Soilbuild Group Holdings Ltd. Sim Lian Group Limited Ho Bee Investment Limited Oxley & Hume Builders Pte. Ltd. Premier G & U Districenters Pte. Ltd. Yenom Industries Pte Ltd 3Q 2010 Secured portfolio of 15 assets valued at S$851.2m Future acquisition assets identified and negotiations commenced Selected 15 properties Fong Tat Motor Co. Pte. Ltd. page 7

8 1QFY2011 Financial Highlights

9 Key Highlights Maiden Results (1) Distribution Per Unit ( DPU ) of 3.04 cents for the period from 26 November 2010 to 31 March 2011 Annualised DPU of 8.81 cents exceeds forecast by 2.1% Net Property Income of S$23.0 million is in line with IPO forecast Sabana on track to deliver the forecast DPU as announced in its IPO Prospectus (1) Sabana Shari ah Compliant REIT was a dormant private trust from the date of constitution on 29 October 2010 until the Properties were acquired on 26 November Sabana Shari ah Compliant REIT was officially listed on the same day ( Listing Date ) on the Singapore Exchange Securities Trading Limited ( SGX-ST ). Consequently the operations of Sabana Shari ah Compliant REIT commenced from 26 November page 9

10 World s Largest & Singapore s First Shari ah Compliant REIT Listing Portfolio Total Portfolio GFA Portfolio Occupancy Total Assets Under Management Market Cap Summary of 1QFY11 Financial Performance 26 November 2010 on Singapore Exchange Securities Trading Limited 15 quality industrial properties spread across Singapore 5 Hi-tech Industrial properties 3 Chemical Warehouse & Logistics properties 5 Warehouse & Logistics properties 2 General Industrial properties Over 3.28 million sq ft 14 triple net master leased properties: 100% 1 multi-tenanted property (9 Tai Seng Drive): 96.1% S$850.7 million S$589.7 million Based on Sabana REIT s closing price of S$0.93 on 31 March 2011 and total units on issue 634,117,085 Gross Revenue: S$24.1 million Net Property Income: S$23.0 million Income available for distribution: S$19.3 million Financials are based on Sabana REIT s performance for the period 26 Nov 2010 to 31 Mar 2011 Distribution yield DPU for the period 26 Nov 2010 to 31 Mar 2011: Annualised DPU: 3.04 cents 8.81 cents page 10

11 Income Stability Stable source of income from long-term rentals Ideal for investors diversifying away from Sukuks without foregoing stability Sabana forecast DPU yield at IPO Income stability 8.22% 8.25% c.100.0% occupancy WALE: 3.5 years Annual step-up: up to 2.0% Gearing: 24.9% Debt headroom: S$122.6m (based on 34% gearing) FY2011 FY2012 Page 11

12 Management Strategy page 12

13 Portfolio Update

14 Quality Portfolio Strategically Located Properties are located in hi-tech industrial and logistics hubs spread across Singapore and in close proximity to expressways and public transportation page 14

15 Portfolio Highlights Lorong Chuan and Tai Seng Clusters The portfolio enjoys suitable a wide range from uses from high-tech industrial and warehousing to ancillary office space Highlights Ideally situated at the outskirts of CDB area High profile tenants including high-tech MNCs and R&D companies Tenants tend to be sticky due to large initial capital invested during set up Suitable for large range of uses Notes: 1. Includes an aggregate rental support of S$6.3m provided by the Vendor for 9 Tai Seng Drive which can be drawn down over 5 years from listing date 2. Conducted by independent property valuers Little India Boon Keng Lavander Lorong Chuan 151 Lorong Chuan Master Tenancy Potong Type: High-tech Pasir Industrial GFA: 810,710 sqft NLA: 605,499 sqft Value (2) : S$305.9m Tenants:33 Sub-tenants Kallang Serangoon 123 Genting Lane Master Tenancy Type: General Industrial GFA: 158,907 sqft NLA: 132,488 sqft Value (2) : S$24.5m Tenants:11 Sub-tenants Aljunied Tai Seng Dakota Mountbatten MacPherson Payer Lebar Eunos 9 Tai Seng Drive Multi-tenanted Lease Type: High-tech Industrial GFA: 218,905 sqft NLA: 176,535 sqft Value (2) : S$46.3m (1) Tenants:9 Tenants Kembangan 3 Kallang Way 2A Master Tenancy Type: Warehouse & Logistics GFA: 83,646 sqft NLA: 66,241 sqft Value (2) : S$15.0m Tenants:1 Sub-tenant page 15

16 Portfolio Highlights Queenstown Cluster A substantial portion of the portfolio is located in high-tech clusters with easy access to major transportation networks and public transportation Dover Buona Vista Highlights one-north Commonwealth Centrally located and close proximity to R&D hub like one-north and education institutions such as NUS and Singapore Polytechnic Ideally placed as laboratories and ancillary office location for big corporations NUS NUH Queenstown 15 Jalan Kilang Barat Master Tenancy Type: High-tech Industrial GFA: 73,928 sqft NLA: 58,543 sqft Value (1) : S$34.5m Tenants:19 Sub-tenants Lack of available land for new industrial development in the area Notes: 1. Conducted by independent property valuers 8 Commonwealth Lane Master Tenancy Type: High-tech Industrial GFA: 161,815 sqft NLA: 141,179 sqft Value (1) : S$70.5m Tenants:1 Sub-tenant page 16

17 Portfolio Highlights Penjuru Cluster Close proximity to the F&B industry cluster and Singapore s port provides healthy and sustained support for warehousing and logistics facilities Highlights 34 Penjuru Lane Master Tenancy Type: Warehouse & Logistics GFA: 414,270 sqft NLA: 367,461 sqft Value (1) : S$60.0m Chinese Tenants:5 Sub-tenants Garden 51 Penjuru Road Master Tenancy Type: Warehouse & Logistics GFA: 246,376 sqft NLA: 212,275 sqft Value (1) : S$42.5m Tenants:1 Sub-tenant 218 Pandan Loop Master Tenancy Type: Warehouse & Logistics GFA: 50,374 sqft NLA: 43,103 sqft Value (1) : S$13.5m Tenants:1 Sub-tenant Strategically located in the heart of Singapore s warehousing and logistics hub Jurong East Close proximity to Pasir Panjang Terminal Clementi Ideal for data centres as well as dry and wet laboratories Notes: 1. Conducted by independent property valuers 33 & 35 Penjuru Lane Master Tenancy Type: Chemical Warehouse & Logistics GFA: 286,192 sqft NLA: 214,776 sqft Value (1) : S$78.9m Tenants:- Jurong Island 200 Pandan Loop Master Tenancy Type: High-tech Industrial GFA: 180,186 sqft NLA: 139,033 sqft Value (1) : S$41.5m Tenants:12 Sub-tenants page 17

18 Portfolio Highlights Tuas Cluster The Tuas cluster is in close proximity to Jurong Island and is likely to benefit from the demand for chemical storage facilities from more than 90 leading chemicals companies located in this region Second Link Lakeside Highlights Close proximity to Jurong Island, the centrepiece of Singapore s chemicals industry 30 & 32 Tuas Avenue 8 Master Tenancy Type: General Industrial GFA: 158,846 sqft NLA: 121,958 sqft Value (1) : S$24.0m Tenants:1 Sub-tenant Pioneer Boon Lay Sticky tenants due to specialised warehouse and logistics space that is highly regulated Easy access to major transportation networks, Second Link and ports Notes: 1. Conducted by independent property valuers 1 Tuas Avenue 4 Master Tenancy Type: Chemical Warehouse & Logistics GFA: 160,361 sqft NLA: 120,340 sqft Value (1) : S$28.0m Tenants:1 Sub-tenant 18 Gul Drive Master Tenancy Type: Chemical Warehouse & Logistics GFA: 132,878 sqft NLA: 116,781 sqft Value (1) : S$34.1m Tenants:1 Sub-tenant Jurong Island page 18

19 Portfolio Highlights Loyang Cluster The Loyang cluster enjoys close proximity to the airport and generally caters to higher valueadding aerospace & aviation and electronics industries Highlights Close proximity to Airport Logistics Park of Singapore and the Changi International LogisPark Pasir Ris 26 Loyang Drive Master Tenancy Type: Warehouse & Logistics GFA: 149,166 sqft NLA: 120,329 sqft Value (1) : S$32.0m Tenants:1 Sub-tenant Changi Airport Attracts tenants who deal with higher value-added and time sensitive products Tampines Simei Notes: 1. Conducted by independent property valuers Expo page 19

20 High Occupancy Rates As at 31 March 2011 Total Portfolio GFA (sq ft) 3,286,560 Portfolio Occupancy 14 properties, triple net master lease 1 property, multi tenanted (9 Tai Seng Drive) 100% 96.1% Weighted average lease term to expiry (yrs) (1) 3.5 Weight average unexpired lease term for the underlying 40.9 land (yrs) (2) (1) Based on Gross Revenue (2) Based on GFA area page 20

21 Diverse Asset Types Portfolio Asset Type: High-tech Industrial Chemical Warehouse & Logistics Warehouse & Logistics General Industrial Portfolio GFA Distribution by Asset Type Total GFA: 3,286,560 sq ft. Portfolio Gross Revenue Distribution by Asset Type Total Gross Revenue: S$24.1 million page 21

22 Diverse Sub-Tenant Base Sub-tenants Industry Diversification by NLA: No concentration in any single trade sector page 22

23 Shari ah Update

24 Shari ah Structuring Activity Conventional Shari ah compliant Sabana REIT Income from real estate All legal income from underlying real estate permissible Only income from Shari ah compliant activities can be distributed. Income from non-shari ah activities allowed up to 5%. Net income from non-permissible and non-core activities are cleansed Due diligence performed on portfolio assets. Less than 0.3% of revenue from non-compliant income Permissible activities at premises All authorised activities at premises permissible Certain activities e.g. gambling not permitted Debt financing Any type of debt financing allowed Shari ah preferred. If not available or viable, conventional debt to comprise up to 1/3 of NAV or market capitalisation 100.0% Shari ah compliant commodity Murabaha facility Insurance Any type of insurance allowed Takaful preferred for REIT related insurance. Conventional, if not available or viable Conventional insurance structured to replicate Takaful Deposits Risk management Any type of deposit instruments permissible Non-speculative hedging permissible Shari ah preferred. Conventional, if not available or commercially viable Shari ah preferred. Conventional, if not available or viable Shari ah compliant product selected Corporate governance Governance structure comprising Board and related committees Shari ah advisory panel in addition to conventional REIT governance structures Formation of Shari ah Committee Shari ah compliance has been achieved and will be maintained without incurring significant ongoing compliance expenses page 24

25 GCC-aligned Shari ah compliance Sabana REIT has deliberately adopted a Shari ah compliance policy that is aligned with GCC standards Regulation Malaysia REIT Sabana REIT Non-Shari ah income contribution 20% 5% Proportion of non- Shari ah debt 0% Up to 1/3 of NAV or market capitalisation page 25

26 REIT Shari ah Entities Sabana REIT will receive its certification of Shari ah compliance at listing from the Shari ah Committee The Shari ah Committee consists of a panel of qualified scholars recommended by the Shari ah Adviser Shari ah reporting structure REIT Manager Authorised officer Officer appointed to interface with adviser Can be same person as compliance officer Issues: - Certificates - Guidelines Shari ah Committee Post listing, the Shari ah Committee will renew the Shari ah certification annually Appoints adviser to advise on Shari ah matters and to recommend committee Recommends scholars to company Serves as company s interface with committee Shari ah adviser page 26

27 Donation to Shari ah Approved Charities Sabana REIT Net Property Income Donation 0.2% Shari ah Compliant Net Property Income of 99.8% Shari ah Compliant Net Property Income 99.8% Non Shari ah Compliant Net Property Income of S$47k to be donated to the Embassy of Japan for the relief and reconstruction efforts in Japan, and the Straits Times School Pocket Money Fund No impact to DPU page 27

28 Market Outlook

29 Singapore Market s Growth Moderated in 2Q First quarter of 2011 started on a healthy note with manufacturing output growing by 10.5% y-o-y in January this year. Growth momentum in 2Q2011 eased as expected, given the strong economic expansion in Based on MTI s advance estimates (1) released on the 14 July 2011, the economy expanded by 0.5 per cent on a y-o-y basis. The moderation in growth reflected a slowdown across many sectors, including manufacturing. MTI s GDP growth projection for 2011 ranges between 5% and 7% as at 19 May Source: MTI & The Business Times Report dated 15 July 2011 (1) The advance GDP estimates for the second quarter of 2011 are computed largely from data in the first two months of the quarter (i.e. April and May 2011). They are intended as an early indication of the GDP growth in the quarter, and are subject to revision when more comprehensive data become available. page 29

30 Singapore Industrial Sector Performance Source: Bloomberg page 30

31 Industrial Rents Expected to Rise Moderately According to a report by DTZ Research, rentals for high-tech industrial space grew at a faster pace in 2Q2011 on the back of strong demand. Hi-tech industrial space, which is highly correlated to office rents benefited from the high rentals in the CBD as companies relocated operations to qualifying hi-specs industrial space in 2Q2011. Despite the slowing economic growth, demand for factory and warehouse space remains healthy and rentals continue to grow steadily. Based on a report by CBRE, the outlook for industrial property sector is still optimistic and some rental upside in the 2H2011 can be expected. Source: DTZ Research Q & CBRE Report Q page 31

32 Benchmarking Against Peers

33 Impact On Industry Prior to Sabana, none of the existing listed Shari'ah compliant REITs had : asset size >US$400m GCC Shari ah compliance standards a sizeable investor base outside Malaysia Assets (US$m) Listing Asset type Industrial Healthcare Plantation Mixed Shari ah compliance Mkt cap (US$m) Float (%) Sources: Company reports, Bloomberg (23 May 2011) page 33

34 Sabana REIT - Benchmarking Against Peers 12-mth forward DPU yield (%) (4) 9.5% 6.5% 7.5% 9.7% 8.4% 8.3% 7.0% No. of properties at IPO No. of properties currently Assets at IPO (S$m) (3) , Assets currently (S$m) (3) 893 5,420 2, ,709 Free float at IPO (S$m) GFA at IPO ( 000 sqft) 3,286 2,639 (1) 16,368 2,474 3,857 4,593 2,993 (1)(2) GFA ( 000 sqft) 3,286 26,508 16,368 4,359 4,093 6,984 26,260 (1)(2) Occupancy rate (%) 100.0% 96.0% 93.2% 99.0% 100.0% 98.8% 98.3% Sources: Bloomberg, Company annual reports Notes: 1. GFA data not available. Represents net lettable area 2. Excludes Pulau Sebarok as this property comprises land only 3. Including property values provided by Independent property valuers 4. As at most recent filing period 31 March 2011 page 34

35 Sabana REIT - Benchmarking Against Peers Weighted average lease term to expiry 3.5 years (1) 4.8 years 2.6 years 4.4 years 6.1 years 4.7 years 5.0 years Weighted average unexpired lease term 41 years (1) 53 years (2) 49 years 47 years (2) 37 years 41 years 60 years Current cost of debt 4.8% (1) 3.5% 2.4% 3.4% 4.4% 3.9% 2.6% Current gearing (3) 24.9% 35.1% 36.1% 31.9% 23.7% 32.5% 39.1% Mgmt fee % distributable income 8.2% (1) 10.0% 14.5% 10.1% 9.4% 10.4% 17.8% P / NAV (4) 0.89x 1.25x 1.18x 0.81x 1.04x 0.91x 1.05x Investment focus Asia Singapore Singapore Asia Asia Asia Asia Manager s mgmt base fee 0.5% p.a. of deposited property 0.5% p.a. of deposited property 0.5% p.a. of deposited property 0.5% p.a. of deposited property 0.5% p.a. of deposited property 0.5% p.a. of deposited property 0.5% p.a. of deposited property Manager s mgmt performance fee 0.5% p.a. of NPI (DPU growth>10%) 0.1% p.a. of deposited property (DPU growth>2.5%) 3.6% p.a. of NPI 0.1% p.a. of deposited property (DPU growth>2.5%) 1.5% p.a. of NPI Capped at 0.8% p.a. of deposited property 3.6% p.a. of NPI 19% 56% 24% 21% 1% 14% 8% Asset type breakdown by valuation 58% 17% 3% 26% 60% 100% 44% 52% 6% 17% 78% 4% 92% Sources: Bloomberg, Company annual reports Notes: 1. As at listing date 2. A-REIT is weighted by NLA; AA-REIT is weighted by land area 3. Based on debt, net of transaction costs 4. Updated as of 23 May 2011 High-tech Industrial Chemical Warehousing & Logistics Warehousing & Logistics General Industrial Others page 35

36 Q&A

37 Executive Officers Kevin Xayaraj - Co-Founder, Chief Executive Officer and Executive Director Mr Xayaraj has more than 19 years of experience in real estate investment, development and asset management in the many property markets. Before joining the Manager, Mr Xayaraj was the Director, Real Estate Investments of TCP (formerly known as Emirates Tarian Capital (S) Pte. Ltd.) from October 2009 to August Prior to that he was the Senior Manager, Marketing at Cambridge Industrial Property Management Pte. Ltd. from January 2009 to August Mr Xayaraj was with Cambridge Industrial Trust Management Limited from December 2005 to December 2008 as an Assistant Vice President (Investment). From January 2004 to December 2005, he was involved in business development and asset management at Ascendas Land (Singapore) Pte Ltd for two years. Mr Xayaraj was also Vice President, Research and Finance at Pacific Star Asset Management Pte. Ltd. from January 2003 to December He was Assistant Manager, Project & Financial Analysis at Pacific Star Property Management Pte Ltd from July 2002 to December Prior to that, he also held other positions such as Senior Manager (Research) with Jones Lang LaSalle Property Consultants Pte Ltd from January 2002 to April 2002, Equities Research Analyst with OUB Securities Pte Ltd from July 1999 to March 2001, UOB Investment Research Pte Ltd from December 1997 to July 1999 and Tsang & Ong Research (Pte) Ltd from January 1997 to December 1997, and Property Analyst/Valuer at Stewart, Young, Hillesheim & Atlin Ltd in Toronto (Canada) from February 1988 to December Mr Xayaraj holds a Bachelor of Applied Science (Honours) degree from the University of Windsor and a Master of Business Administration from the Imperial College, University of London. Tan Chiew Kian - Chief Financial Officer Before joining SABANA, Ms Tan Chiew Kian was the Chief Financial Officer of Singapore Medical Group Limited from February 2008 till March 2011, where she was responsible for the Group's finance, tax, treasury, audit, investments and other matters that relate to the Group's listing on the Singapore Exchange (SGX). From 2006 to 2008, Ms Tan served as the Chief Financial Officer of Sembawang Kimtrans Ltd where she held a similar portfolio. From 2001 to 2005, she was a Finance Manager at CapitaLand Commercial Limited, a wholly-owned subsidiary of property developer, CapitaLand Limited. Prior to that, she worked at Jurong Town Council (JTC) as an Accountant. Ms Tan holds a Master of Business Administration from Nanyang Technological University. She is a Certified Public Accountant and Accredited Tax Practitioner (Income Tax) of Singapore. page 37

38 Executive Officers Bobby Tay Chiew Sheng - Co-Founder, Chief Strategy Officer and Head of Investor Relations Mr Tay has more than six years of experience in investor relations. Prior to joining the Manager, Mr Tay was the Director, Business Development at TCP (formerly known as Emirates Tarian Capital (S) Pte. Ltd.) from October 2009 to August From August 2007 to September 2009, Mr Tay worked with Cambridge Industrial Trust Management Limited as the Manager of the Investor Relations Department. Mr Tay was the Manager of Investor Relations at Aztech Group Ltd from April 2007 to August From April 2004 to April 2007, Mr Tay was a Manager of Magnecomp International Limited where he handled media, investor and analyst relations for the company. He worked closely with the company's CEO and CFO for the quarterly reporting of results to the board of directors and the financial market, and produced collateral for investor relations, presentations for analyst briefings and press releases. He also performed market research for mergers and acquisitions and joint venture opportunities, conducted statistical analysis on industry trends and competitors, and business analysis of the company's performance. Mr Tay began his career working as an operations executive for the People's Action Party at its headquarters from January 2000 to April Mr Tay holds a Bachelor of Commerce degree in Management from the University of Western Sydney and a Master of Business Systems degree from Monash University. Aw Wei Been - Chief Operating Officer & Head of Asset Management Mr Aw brings with him 14 years of experience in the real estate industry, having been involved in lease management, land and building development and the marketing of industrial facilities during his tenure in JTC Corporation. He was also a Principal Planner with Jurong Consultants Pte Ltd where he led and co-led overseas consultancy projects. Following his tenure with Jurong Consultants Pte Ltd, Mr Aw joined Cambridge Industrial Trust Management Limited as Senior Manager of Investment, where his responsibilities included sourcing and negotiating industrial real estate sale and leaseback deals, strategizing proposals and carrying out property legal and technical due diligences.. Thereafter he joined the Agency for Science, Technology and Research (A*STAR) as Head, Infrastructure Planning and Facilities Management where he played an instrumental role in the development planning of Fusionopolis Phase 2A. Before joining Sabana Real Estate Investment Management, he was the Head of Asset Management at Tarian Capital Partners Pte. Ltd. (formerly known as Emirates Tarian Capital (S) Pte. Ltd.). Mr Aw holds a Bachelor of Science (Honours) degree in Estate Management from the National University of Singapore and a Master of Science in Real Estate from the National University of Singapore. page 38

39 Sabana Real Estate Investment Management Pte Ltd 151 Lorong Chuan, #02-03 New Tech Park, Singapore Tel: Fax: For enquires, please contact: Mr Bobby Tay Chief Strategy Officer & Head of Investor Relations Tel: page 39

40 Disclaimers This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses, including employee wages, benefits and training, property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events. Any discrepancies in the tables included in this presentation between the listed amounts and total thereof are due to rounding. Important Notice This presentation is for information only and does not constitute an offer, invitation or solicitation of securities in Singapore or any other jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. The value of the Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager, HSBC Institutional Trust Services (Singapore) Limited, as trustee of Sabana Shari ah Compliant Industrial Real Estate Investment Trust, Freight Links Express Holdings Limited, the Joint Bookrunners or any of their respective affiliates. An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request that the Manager redeem or purchase their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. This presentation is not an offer or sale of the Units in the United States. The Units have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration except pursuant to an exemption from, or in a transaction not subject to, registration under the Securities Act. Any public offering of the Units to be made in the United States will be made by means of a prospectus that may be obtained from the Manager or Sabana Shari ah Compliant Industrial Real Estate Investment Trust and that will contain detailed information about Sabana Shari ah Compliant Industrial Real Estate Investment Trust, the Manager and its management, as well as financial statements. Sabana Shari ah Compliant Industrial Real Estate Investment Trust does not intend to register any portion of the offering in the United States or to conduct a public offering of securities in the United States. Accordingly, the Units are being offered and sold outside the United States (including to institutional and other investors in Singapore) in reliance on Regulation S under the Securities Act. This presentation is not to be distributed or circulated outside of Singapore. Any failure to comply with this restriction may constitute a violation of United States securities laws or the laws of any other jurisdiction. page 40