TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS): RELATED PARTY TRANSACTIONS SUNWAY REAL ESTATE INVESTMENT TRUST (“SUNREIT”) - HOTEL MASTER LEASE BETWEEN OSK TRUSTEES BERHAD (AS TRUSTEE FOR SUNWAY REAL ESTATE INVESTMENT TRUST), SUNWAY REIT MANAGEMENT SDN BHD AND SUNWAY PUTRA HOTEL SDN BHD (FORMERLY KNOWN AS WISDOM ACHIEVERS SDN BHD)
SUNWAY REAL ESTATE INVESTMENT TRUST |
Type | Announcement | ||||||||||||
Subject | TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) RELATED PARTY TRANSACTIONS | ||||||||||||
Description | SUNWAY REAL ESTATE INVESTMENT TRUST (“SUNREIT”) - HOTEL MASTER LEASE BETWEEN OSK TRUSTEES BERHAD (AS TRUSTEE FOR SUNWAY REAL ESTATE INVESTMENT TRUST), SUNWAY REIT MANAGEMENT SDN BHD AND SUNWAY PUTRA HOTEL SDN BHD (FORMERLY KNOWN AS WISDOM ACHIEVERS SDN BHD) | ||||||||||||
1. INTRODUCTION We wish to inform that OSK Trustees Berhad as Trustee for SUNREIT (“the Trustee”) and Sunway REIT Management Sdn Bhd as the Manager for SUNREIT (”the Manager”) has on 29 June 2011, entered into an agreement (“Hotel Master Lease”) with Sunway Putra Hotel Sdn Bhd (formerly known as Wisdom Achievers Sdn Bhd) (“SPHSB”), a wholly-owned subsidiary of Sunway City Berhad (“SunCity”), whereby the Trustee will lease out to SPHSB, a hotel consisting of 458 hotel rooms, 170 serviced apartments and 3 penthouses located at 100 Jalan Putra, Kuala Lumpur (“Hotel”) for a term of 10 years at a total rent in accordance with the formula as stipulated in the Hotel Master Lease. The Hotel is part of the property built on that piece of land held under Geran 10012, No Lot 38, Seksyen 51, Mukim Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur (“Land”) which was acquired by the Trustee, on behalf of SUNREIT, at a public auction conducted on 30 March 2011 pursuant to an order of sale obtained by Commerce International Merchant Bankers Berhad. The acquisition was completed upon the registration of the Certificate of Sale (National Land Code Form 16F) with the Kuala Lumpur Land Registry on 19 April 2011. SunCity is a company incorporated in Malaysia and having its registered office at Level 16, Menara Sunway, Jalan Lagoon Timur, Bandar Sunway, 46150 Petaling Jaya, Selangor Darul Ehsan. The authorised and paid-up share capital of SunCity are RM3,500,000,000/- and RM470,017,432/- respectively. The principal activities of SunCity are property development and investment, and investment holding. SPHSB, a wholly-owned subsidiary of SunCity, is a company incorporated in Malaysia and having its registered office at Level 16, Menara Sunway, Jalan Lagoon Timur, Bandar Sunway, 46150 Petaling Jaya, Selangor Darul Ehsan. The authorised and paid-up share capital of SPHSB are RM100,000/- and RM2/- respectively. The principal activity of SPHSB is hotel business. Dewan Bandaraya Kuala Lumpur has issued a licence to SPHSB to operate the Hotel effective from 1 July 2011. 2.3 The Manager The Manager, a wholly-owned subsidiary of SunCity, is a company incorporated in Malaysia and having its registered office at Level 16, Menara Sunway, Jalan Lagoon Timur, Bandar Sunway, 46150 Petaling Jaya, Selangor Darul Ehsan. The authorised and paid-up share capital of the Manager are RM1,000,000/- respectively. The principal activity of the Manager is managing and administering a real estate investment fund. The Trustee is a company incorporated in Malaysia and having its registered office at 20th Floor, Plaza OSK, Jalan Ampang, 50450 Kuala Lumpur. It is registered as a trust company under the Trust Companies Act, 1949 and is also registered with the Securities Commission to conduct unit trust business. The principal activity of the Trustee is providing private and corporate trustee services. The present authorised share capital of the Trustee is RM25,000,000/- comprising 2,500,000 ordinary shares of RM10.00 each, of which RM6,000,000/- comprising 1,200,000 ordinary shares of RM5.00 each are issued and partially paid-up. SUNREIT was established pursuant to a Deed dated 20 May 2010 (as amended by a Supplementary Deed dated 10 June 2010) entered into between the Manager and the Trustee. The principal investment policy of SUNREIT is to invest in commercial, office, industrial and other real estate assets. The salient terms of the Hotel Master Lease are as follows:-
This lease arrangement with SPHSB would ensure that SUNREIT benefits from any upside to the hotel business operated by SPHSB through the profit sharing mechanism of the variable rent whilst having protection from downside risk via the guaranteed rent.
5.2 On Net Asset Value (“NAV”) The Hotel Master Lease will have no material impact or changes to the unaudited NAV of SUNREIT at the time of completion. 5.3 On Earnings The Hotel Master Lease is not expected to have any material effect on the earnings of SUNREIT for the financial year ending 30 June 2011. 6. APPROVALS REQUIRED Pursuant to the Securities Commission’s Guidelines on Real Estate Investment Trusts, the Hotel Master Lease does not require approvals from the Securities Commission or the unitholders of SUNREIT. Tan Sri Dato' Seri Dr Jeffrey Cheah Fook Ling and Dato’ Ngeow Voon Yean are Directors of SunCity and the Manager. Dato’ Ngeow Voon Yean has direct interest in SunCity and deemed interest in SUNREIT. Tan Sri Dato’ Seri Dr Jeffrey Cheah Fook Ling, Puan Sri Datin Seri (Dr) Susan Cheah Seok Cheng, Sarena Cheah Yean Tih, Sungei Way Corporation Sdn Bhd, Timah Dunia Dredging Sdn Bhd, Active Equity Sdn Bhd and Government of Singapore Investment Corporation Pte Ltd are major shareholders of SunCity and major unitholders of SUNREIT. Sarena Cheah Yean Tih is also a Director of the Manager. Accordingly, Tan Sri Dato' Seri Dr Jeffrey Cheah Fook Ling, Dato’ Ngeow Voon Yean and Sarena Cheah Yean Tih have abstained from deliberation and voting in the Board of the Manager in respect of the Hotel Master Lease.
Save and except for Tan Sri Dato' Seri Dr Jeffrey Cheah Fook Ling, Dato’ Ngeow Voon Yean and Sarena Cheah Yean Tih, the Board of Directors of the Manager is of the opinion that the Hotel Master Lease is in the best interests of SUNREIT.
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Announcement Info
Company Name | SUNWAY REAL ESTATE INVESTMENT TRUST |
Stock Name | SUNREIT |
Date Announced | 29 Jun 2011 |
Category | General Announcement |
Reference No | SR-110629-587B7 |