Name of fund

:

Sunway REIT

Category of fund

:

REIT

Type of fund

:

Income and growth

The Manager

:

Sunway REIT Management Sdn Bhd

The Trustee

:

OSK Trustees Berhad

Investment objective

:

To provide the Unitholders with an exposure to a diverse portfolio of Authorised Investments that will provide stable cash distributions with the potential for sustainable growth in Net Asset Value per Unit

Investment policies

:

The principal investment policy of Sunway REIT is to invest in commercial, office, industrial and other Real Estate Assets. This investment policy will be subject to the REIT Guidelines, which guides its limitations and restrictions in investments. Please refer to Section 15.14 of the Prospectus for more details

Investors’ profile

:

Sunway REIT is most suitable for investors who:

1. have funds but do not have the time or expertise to find, select, negotiate, purchase and manage real estate properties;
2. have limited funds and wish to, but cannot, finance investment in real estate property for their own account;
3. have a long-term investment horizon; and
4. seek long-term capital growth on a portfolio of Real Estate and/or Real Estate-Related Assets.

Distribution policy

:

Distributions will be made at the election of the Manager on a quarterly basis or at such other times as the Manager in its sole discretion may determine. Currently, the Manager intends to distribute at least 100% of Distributable Income for each of the first two Financial Years and at least 90% for each subsequent Financial Year. Please refer to Section 4.4.4 of the Prospectus for more details

Revaluation policy

:

The Properties will be subject to a full revaluation at least once every three years from the last valuation date or more frequently as the REIT Guidelines may stipulate. Such full revaluations will be conducted on the basis and methods which are in accordance with the Securities Commission Guidelines on Asset Valuation issued by the Securities Commission. In addition, in interim years the Manager intends to subject the Properties to an annual condensed valuation as required by prevailing accounting standards, which may affect the fair value of the Properties.

Gearing policy

:

The total borrowings of Sunway REIT shall not exceed 50% of the Total Asset Value (or such other level permitted by the Securities Commission) at the time the borrowings are incurred unless prior approval of the Unitholders has been obtained

Performance benchmark

:

The following performance indicators can be considered in reviewing the performance of Sunway REIT:

1. Management expense ratio: the ratio of expenses incurred in operating Sunway REIT to the NAV of Sunway REIT;
2. Total returns: the change in value of Sunway REIT over a period of time plus any distributions received during that time;
3. Average annual return: the sum of the return rates of Sunway REIT over a given number of years divided by that number of years;
4. Distribution yield: the annual distribution per Unit paid by Sunway REIT divided by its current market price; and
5. NAV per Unit: net asset value of Sunway REIT as determined by deducting the value of all Sunway REIT’s liabilities from the Gross Asset Value, divided by total issued Units

Deed

:

The Deed dated 20 May 2010 made between the Trustee and the Manager constituting Sunway REIT and any supplemental deed thereto

Board Lot

:

100 Units per board lot
Investors may buy and/or sell the minimum of one board lot (i.e. a minimum of 100 Units). Any additional investment in Sunway REIT will be in board lot incrementals