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REAL GLOBAL MALAYSIA CORPORATION

Our Ref: VR/01-12/0053 (A)

DATE: 01 NOVEMBER 2016

Real Global Malaysia Corporation
Level 32, The Gardens South Tower, Mid Valley City
Lingkaran Syed Putra
59200 Kuala Lumpur.

Dear Sirs
CERTIFICATE OF VALUATION OF A 5 LEVEL RETAIL MALL WITH 1 MEZZANINE
FLOOR, 2 LEVELS OF BASEMENT CAR PARK AND 4 LEVELS OF ELEVATED CAR
PARK KNOWN AS MID VALLEY MEGAMALL

We were instructed by Real Global Malaysia to conduct a valuation of the Subject Property.
The full details of the valuation are included in our Valuation Report dated November 1,
2012.
This certificate has been prepared for inclusion in the prospectus in conjuction with the
proposed establishment and listing of Real Global Malaysia on the Main Market of Bursa
Malaysia Securities Berhad (“Bursa Securities”).
The Subject Property was inspected on October 15, 2016. The relevant date of valuation for
this valuation exercise is at October 15, 2016..
We confirm that we have valued the Subject Property based on the valuation basis stated
below. The valuation has been carried out in accordance with the Asset Valuation Guidelines
issued by the Securities Commission and the Malaysian Valuation Standards issued by the
Board of Valuers, Appraisers and Estate Agents, Malaysia.
The basis of valuation adopted is the Market Value which is defined as the estimated amount
for which a property should exchange on the date of valuation between a willing buyer and a
willing seller in an arm’s length transaction after proper marketing wherein the parties had
each acted knowledgeably, prudently and without compulsion.

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which also serve as the foundation for the abovementioned office towers and hotels. The 2 . Generally. with waterproof reinforced concrete flat roof concealed behind parapet walls. South Court and Centre Court. Age of Building 30 years Building Description The building is generally constructed on reinforced concrete framework resting on deep piled foundation with brick infill rendered externally and plastered internally. and also by Jalan Maarof. 59200 Kuala Lumpur. Mid Valley City. Each section has its own entry point to the mall which is generally fitted with frameless automatic sliding glass door further secured with roller shutter. the Subject Property is also accessible from Petaling Jaya via Federal Highway or Sprint Highway heading west towards Kuala Lumpur. Name and Address of the Subject Property Mid Valley Megamall forms part of the Phase 1 development of the prestigious scheme known as Mid Valley City. It is linked by major arterial roads such as Jalan Syed Putra which connects to the Federal Highway.REAL GLOBAL MALAYSIA CORPORATION Property Description Property Type/ Interests Valued A 5 level retail mall (from Level LG to 3) with 1 mezzanine floor. connect to Jalan Kuching and head south towards Jalan Kinabalu. It bears official address as Mid Valley Megamall. Jalan Tun Sambathan. Location It is situated approximately 6 kilometres west of Kuala Lumpur City Centre and 4 kilometres east of Petaling Jaya. The Subject Property is easily accessible from Kuala Lumpur City Centre by using Jalan Tun Razak. East – West Link Highway and Sprint Highway. 2 levels of basement car park (Basement 1 & 2) and 4 levels of elevated car park (from Level 1 to 3 & Mezzanine Floor) known as Mid Valley Megamall. Lingkaran Syed Putra. Futher. the Subject Property is segmented into three sections. thence turn onto Jalan Syed Putra and exit onto Mid Valley City. From there. namely North Court.

ft. as well as through the lower ground level which is occupied by individual tenants along the passageway.04% Centre Court has two main entrances patrons’ 100. The Subject Property is also well connected to The Gardens Mall via an air-conditioned pedestrian bridge located on Level 1 and Level 2. are the (near and the East Coffee West Entrance.86 y rate (Source: The management team of MVC) 100.00% % which Entrance Bean) for convenience. Existing Use of the Subject Property Retail mall Averange Current Base Rental RM9.81 per sq. per month Occupancy rate Terms of Tenancy The typical terms of tenancy is 3 years with the option of renewal option between 1 to 3 years.REAL GLOBAL MALAYSIA CORPORATION Year As at the 2015 date 2014 2013 of valuation Occcupanc 99.00% 99. 3 . located near Starbucks Café.

(567.REAL GLOBAL MALAYSIA CORPORATION Title Particulars Master Title No. ft. m. 2012) Bays Registered Owner Express Condition *Restriction Mid Valley City Sdn Bhd (“MVC”) This land shall be used for commercial building only (Tanah ini hendaklah hanya untuk bangunan perdangan sahaja) In This land shall not be transferred. our valuation is on the basis that the written consent from the Federal Territory Land Executive Committee Secretariat in respect of the aforesaid restriction in interest will not be unreasonable withheld. Seksyen 95A.729.103 sq. Daerah Tenure Kuala Lumpur. of Car Park 6. ft. Building (Bangunan) 1. ft.319 square metre “sq.532 square feet (“sq. Wilayah Persekutuan Kuala Lumpur Leasehold for 99 years expiring on June 6. (based on rental roll as at March (“NLA”) 26.092 bays (as at March 26. PN37075. Lot 80. 2103 thus leaving an unexpired term of approximately 91 years as at the date of this Category of land use Land Area Gross Floor Area Net Lettable Area certificate. In this regard. leased. INDIVIDUAL BLOCK STRATA TITLES IN RESPECT OF THE SUBJECT PROPERTY HAS NOT BEEN ISSUED BY THE RELEVANT AUTHORITY.) Approximately 1.2012) No. OUR 4 . secured or charged except Interest with the consent of the Federal Territory Land Executive Committee Secretariat (Tanah ini tidak boleh dipindah milik.369 sq. dipajak.”) Approximately 6. Bandar Kuala Lumpur.”) (97.108 sq.047. dicagar atau digadai melainkan dengan kebenaran Jawatankuasa Kerja Tanah Wilayah Persekutuan Kuala Lumpur) * We wish to draw your attention that the Subject Property carries a restriction in interest the consent of the Federal Territory Land Executive Committee Secretariat. m.107.

statutory outgoings. of retail space.REAL GLOBAL MALAYSIA CORPORATION VALUATION IS ON THE BASIS/ASSUMPTION THAT INDIVIDUAL BLOCK STRATA TITLES IN RESPECT OF THE SUBJECT PROPERTY WILL BE ISSUED BY THE RELEVANT AUTHORITY AND WHEN ISSUED.1 6. WILL BE FREE FROM ALL ENCUMBRANCES OVER THE RESPECTIVE FLOOR AREAS. Health & Wellness Exhibition Centre Home and Gifts Discounters Timepiece and Jewellery Total (Source: The management team of MVC) Percentage Occupied NLA (%) 41. ft. Planning Approvals Planning Approval The subject property is located within an area designated for commercial purposes.1 30. MPH Tenancy Term Bookstore.4 1. the tenant mix of the Subject Property can be summarised as follows:Trade sector Departmental Store/ Supermarket Entertainment and Leisure Fashion Apparel Food and Beverage Sundry and Services Beauty.3 6.1 4.307 sq. Kamdar and Toy ‘R’ Us. service charges (if any) and building insurance for the property.04% as at the date of valuation The Subject Property has three major anchor tenants.7 15.3 4.1 100.2 3. Metrojaya and Carrefour which occupy approximately 713. Occupancy Details & Tenancy Profile Occupancy Rate Tenancy Profile 99.0 of Percentage of Gross Rental Income (%) 14. Overall.7 11.3 3. namely AEON.1 11.6 16.4 11.8 1. The landlord is assumed to be responsible for all external and structural repairs.1 1.0 1.7 11.0 5 .9 3. Mega Kidz.1 100. There are also 18 others junior anchor tenants such as Golden Screen Cinema.

30% 14.07% 82.37% Kiosk 0.63% 2. Investment Method 6 .86% Normal Tenant 51.REAL GLOBAL MALAYSIA CORPORATION The table below illustrates the tenant mix table of the Subject Property:Type of Tenant Area Occupied of Rental Income on NLA base rental Key Tenant 48.76% We have adopted the “Investment Method” and “Comparison Approach” in formulating our opinion of the Market Value of the Subject Property.

The reversionary rental is the expected rental that the Subject Property is expected to achieve upon expiry of term rental.240. insurance and management are then deducted from the annual rental income. Outgoings.000 2013 23. ft. Kiosks 1) Gross Rental Gross rental is divided into 2 categories which is term rental and reversionary rental. Uniqlo. Averange current base rental Averange reversionary base rental RM 9.REAL GLOBAL MALAYSIA CORPORATION In the “Investment Method”. some of the term rental is on the low side as compared to the prevailing term rental rate of its neighbouring lots on the 2 nd and 3rd floor of Mid Valley Megamall and therefore.81 per sq.000 2012 23. per month 2) Other Income Revenue 2015 Rental income-percentage rent 31. per month RM 10.823. However.00 (RM) 2014 26. Metrojaya.20 per sq. such as property taxes. Kamdar. Oasis Food Court and Golden Screen Cinema) ii. Normal Tenant (tenant other than the Key Tenant) iii. AEON.0006.e. Toys ‘R’ Us. ft. Key Rental (i.329. we have adjusted the reversionary rental upwards. Carrefour. we have categorised the tenancy into 3 categories:i. We have use the average term tenancy rental as a benchmark to arrive at our reversionary rental. The net annual rental income is the capitalized at an appropriate current market yield to arrive at its indicative capital value. The term rental is the expected rental that the Subject Property is expected to achieve and is derived from the current tenancy.000 0 7 . The term rental rate for key tenants has been increased 10% upon the reversionary period as it is stipulated in the tenancy agreements that rental increase upon expiry will be in the range of about 10% to 20% and we have adopted a 10% increment upon reversionary. repairs and maintenance. Rental evidence may be obtained from actual passing rents commanded by the building itself if it tenanted. For our calculation purpose. the capital value of the Subject Property is derived from an estimate of the Market Rental which the Subject Property can reasonably be let for.

505.76 2012 59.980. advertising and promotion costs.000 4.641 sq.848. 3) Operating Expenses (Outgoings) These are the expenses incurred in maintaining the Subject Property. headquarters support expenses and property upgrade expenses for retail.Leasing (ATM. 8 .000 5.068. which is designated as part of the Subject Property are currently under the management of Mid Valley City Garden Sdn Bhd.258. property cost. Interior. Cart. We have been informed by the client that the tenants of the Subject Property are currently paying RM 1.378.481.000 6.000 19.000 7.)** (Source: The management team of MVC) *This outgoing covers staff cost.000 Storage.693.000 2. Signage. **Based on NLA of 1703.680. general expenses.988.79 2014 54.000 20. RM22.900.200.50 per sq. headquarters support expenses and maintenance cost.467sq. ft. per month for service charge.000 2.69 2013 56. ft. It should be noted that the historical operating costs exclude part of lower ground floor with the NLA of approximately 25.000 for leasing and advertisement and promotion. Website) (RM) Advertisement and Promotion/ 7.372.000 Outgoings (RM/ per sq. 7.802.810.000 5. ft. ft.000 20.000 2.92 ft.744.000 for percentage rent.911.467 sq. operational costs of the Subject Property.098.REAL GLOBAL MALAYSIA CORPORATION Other Income:. The historical operating cost is presented as follows:Outgoings 2015 Outgoings (RM)* 57.454.000 (Source: The management team of MVC) We have adopted an average gross annual income for year 2012 and 2013 of RM28.000 for car park income and RM 14.000 Mailbox/ Paid Phone/ Sundry Income (RM) Car park income (RM) 24. which comprise staff costs. general expenses. 2. the owner and operator of The Gardens Mall.000 6. which excludes 25.

0% for void allowance for vacancy periods. advertisement and promotion income as it considered to be stable while 8% was for turnover rent income is to reflect its more flunctuating nature.057. we have adopted RM 2.25% (upon (Normal Rates(Key tenant) 5.75 per sq.75% 6. ft.00% 6. 5) Voids We have adopted 3.REAL GLOBAL MALAYSIA CORPORATION The average historical operating expenses excluding the major capital expenditure of property upgrading over the past 4 years is approximately RM57.00% tenancy expiry) We have adopted 6% yield for car park.70 per sq.00% 5. The overall analysed average yield of the subject property is 6. We have adopted the following capitalisation rate for the subject property Period Rates Tenancy period Reversionary period tenant) 6. marketing and rent free periods offered to new tenants as the subject property has recorded an occupancy rate of more than 96% over past years. which is similar to operating expenses in year 2014 in our valuation computation. leasing. Therefore.11% taking into consideration the lower rentals as compared to the comparables.). ft.500 per annum (RM 2.25% Rates(kiosks) 5. 4) Yield This yield is used to capitalise the annual net rental to arrive at the capital value. In comparing. due consideration is given the factors such as 9 . Comparison Method This approach is the market approach of comparing the subject property with the similar properties that were either transacted recently of listed for sale within the same location or other comparable localities.

000. ft area Consideratio RM3. Ministry of Finance. ft 297. 2076 Approximately 34 Approximately 15 Approximately 20 years years years date) Net lettable 1.000.335. size.119 sq.470 sq. ft. building differences.115 Global trustee of Starhill Global REIT RM1. Comparables Property 1 Pavilion 2 Kuala Sungei Wang Plaza Source Lumpur Mall Prospectus of Prospectus Pavilion REIT Tenure Leasehold 99 Age(as of Bursa 4 Lot 10 Shopping Centre Securities Bursa Securities Capitamalls Malaysia Annoncement Trust for Freehold Annoncement Freehold Leasehold for 99 years expiring on October 26.000 n Vendor 00 Urusharta Vast Winner Sdn Bhd Maybank Cemerlang Sdn Trustee Maybank Trustee Berhad Berhad Bhd Purchaser AmTrustee Am Trustee Berhad. For the purpose of this valuation. ft 256.the the trustee Pavilion REIT trustee of Trust Trust of CapitaMalls Malaysia Services(Singapore) Trust(CMMT) RM1.000 RM629.0 RM 724.000 RM401. 450. we have adopted the following comparables. HSBC Berhad. and amenities.300.811 sq.190. Malaysia revealed that there are a few transactions involving retail malls within the vicinity. Our findings from the data of the Valuation and Property Service Department. the of Value per sq.390 Intitutional HSBC Intitutional Starhill REIT RM2.REAL GLOBAL MALAYSIA CORPORATION location. 2109 at Approximately transaction 3 Starhill Gallery 5 years years expiring on July 29.561 10 .607 Services(Singapor Limited. the trustee e) Limited.000. time element and other relevant factors to arrive at our opinion of value. improvements. Rm 2.354 sq.

000.REAL GLOBAL MALAYSIA CORPORATION ft - Locatio - n Accessib - ility Income - Time Location Condition Accessibility Tenure Size - Time Location Accessibility Tenure Size Master Lease Agreement - Time - Location - Accessibil ity - Tenure - Size - Master Lease Agreemen t Final RM 1912 RM1. Opinion Value The value summaries from both methods of valuation and the reconciliation rational are as follows:Investment Method Rm 3.000 11 . ft) After final adjustment. Having taken the above into consideration.640 adjusted value(per sq.798 RM1.440. It is therefore our opinion that RM1. Pavilion Kuala Lumpur Mall is the best comparable to the subject property due to its similarities. ft to RM1.000 Comparison Method Rm 3.912 per sq.306. ft. ft reflects the fair and reasonable current market value for the subject property. we have arrived at a range of RM1. we are saying the opinion that comparable No.1.527 RM1.527 per sq.912 per sq.000.

000. Therefore. Real Global Malaysia Corporation Nur Nazihah binti Muhammad Azlan Jefre. qualitative and quantitative adjustments are more difficult to compute to reflect the differences of the comparable and the property being valued. However. 2016. as at November 1.440. is RM 3. with Temporary Certificate of fitness for occupation issued. subject to the existing tenancies and individual block strata titles being issued free from encumbrances. We are of the opinion that this is the best method to be used in this instance as the subject property as an income generating commercial property. for a more complex property and other income generating or investment properties. The Comparison approach is the most appropriate method of valuation as there are less adjustments and analysis on comparable.REAL GLOBAL MALAYSIA CORPORATION In arriving the market value for homogeneous property such as vacant lands and residential properties. Yours faithfully. we have adopted The Investment Method as the main method in arriving at our opinion of the current market value. It is our opinion that the current market value of the subject property with the remaining unexpired term of approximately 70 years. Registered Valuer(V-241) 12 .000.

Formula To calculate amount of stamp duty. 13 .000 will be charged 2%. this is stamp duty computation for Mid Valley Shopping Center.REAL GLOBAL MALAYSIA CORPORATION Stamp Duty In Malaysia.000 will be charged with 1%. and the next RM400. In general term. for exceed RM500. commercial and financial instruments. Stamp duty is a tax levied on a variety of written instruments specifies in the First Schedule of Stamp Duty Act 1949.000 is charged 3%. Lastly. Computation of stamp duty By using formula above. stamp duty will be imposed to legal. formula to be use is as below : - Table above shows that the first RM100.

REAL GLOBAL MALAYSIA CORPORATION Since market value of Mid Valley Shopping Center is RM3.000.194. 14 .000. Therefore. total payable stamp duty payable is RM103.440.000.

The total payable stamp duty is RM 103. Starhill Gallery and Lot 10 Shopping Centre.532 square feet. Its really a benefit for Permata Holding to expand their business here.000. However. The building itself been age of 30 years.047. We had been calculate the market value of Mid Valley Megamall based on investment method and comparison method. 15 .000. All information provided by the client and others is thought to be accurate. This report is to ensure all the process that are designed run smoothly.194. Mid Valley Megamall is a 5 level of retail mall with land area of 1. As we know that. we offer no assurance as to its accuracy. Sungai Wang Plaza. Mid Valley Megamall has been able to attract shoppers from Kuala Lumpur and across Klang Valley mainly due to its standing as one of the largest mixed-use developments in Malaysia.000. Its strategic location and popularity of the entire development facilitated strong shopper traffic historically and this trend is expected to continue in the future.440. our valuation company Real Global Malaysia Corporation that hired by Permata Holding have come out a valuation report of commercial complex for them to expand its business. we offer no assurance as to its accuracy. The market value of Mid Valley Megamall is RM 3. All information provided by the client and others is thought to be accurate. However.REAL GLOBAL MALAYSIA CORPORATION CONCLUSION In conclusion. Based on the report. For the limiting condition. We compare Mid Valley Megamall with competitor such as Pavillion.

Property Market Overview and Outlook. and performance analysis. Malaysia Economic Overview and Outlook. as well as SWOT and comparative analysis. Review on REIT Portfolio and Outlook. outlook commentary on the assets is also provided based on market findings. A review on a portfolio under the REIT from the perspectives of location. Subsequently.REAL GLOBAL MALAYSIA CORPORATION REFERENCE Real Global Malaysia Corporation provide an Valuation report for the purpose of Permata Holdings on its expandsion business. An overview of demand and supply as well as outlook of the retail property markets in general. An overview of Malaysian and Kuala Lumpur economy focusing on macroeconomic indicators will be presented in this section. trade area. 16 .