OTHERS SUNWAY REAL ESTATE INVESTMENT TRUST ("SUNREIT") - VARIATION TO THE MASTER LEASE AGREEMENT DATED 9 OCTOBER 2012 IN RELATION TO THE 7-STOREY PURPOSE BUILT HOSPITAL BUILDING WITH LOWER GROUND FLOOR ANNEXED WITH A MULTI-STOREY CAR PARK BLOCK AND A CONVENTION CENTRE SITUATED ON ALL THOSE PARCELS OF LEASEHOLD LANDS HELD UNDER PN12549 LOT 38160 AND PN12550 LOT 45 OF BANDAR SUNWAY, DAERAH PETALING, NEGERI SELANGOR (“THE SUNMED PROPERTY”) BETWEEN RHB TRUSTEES BERHAD (FORMERLY KNOWN AS OSK TRUSTEES BERHAD) (AS TRUSTEE FOR SUNWAY REAL ESTATE INVESTMENT TRUST), SUNWAY REIT MANAGEMENT SDN BHD AND SUNWAY MEDICAL CENTRE SDN BHD
SUNWAY REAL ESTATE INVESTMENT TRUST |
Type | Announcement |
Subject | OTHERS |
Description | SUNWAY REAL ESTATE INVESTMENT TRUST ("SUNREIT") - VARIATION TO THE MASTER LEASE AGREEMENT DATED 9 OCTOBER 2012 IN RELATION TO THE 7-STOREY PURPOSE BUILT HOSPITAL BUILDING WITH LOWER GROUND FLOOR ANNEXED WITH A MULTI-STOREY CAR PARK BLOCK AND A CONVENTION CENTRE SITUATED ON ALL THOSE PARCELS OF LEASEHOLD LANDS HELD UNDER PN12549 LOT 38160 AND PN12550 LOT 45 OF BANDAR SUNWAY, DAERAH PETALING, NEGERI SELANGOR (“THE SUNMED PROPERTY”) BETWEEN RHB TRUSTEES BERHAD (FORMERLY KNOWN AS OSK TRUSTEES BERHAD) (AS TRUSTEE FOR SUNWAY REAL ESTATE INVESTMENT TRUST), SUNWAY REIT MANAGEMENT SDN BHD AND SUNWAY MEDICAL CENTRE SDN BHD |
1. INTRODUCTION
Subsequently, the Lessee had on 16 May 2013, accepted the conditions as set out in the Letter of Approval and the parties have agreed to document the variations required pursuant to Clause 22.7 of the MLA to reflect the new terms and conditions in relation to the Renovation Works subject to the terms and conditions of the Letter of Approval (“Supplemental Letter to the MLA”). 2. SALIENT TERMS OF THE SUPPLEMENTAL LETTER TO THE MLA
As such, additional rent will be charged to the Lessor from the Completion Date or any other date as may be agreed by the parties in writing as follows:- (a) the amount of the additional rent shall be calculated at the rate of 6.13% of the Final Total Cost and Expense. (b) the additional rent shall be added to the existing Rent which in aggregate shall constitute the new rent payable by the Lessee to the Lessor and shall therefore be subject to the agreed 3.5% annual rental increase for Year 2 onwards of the Principal Lease Period. The new Rent payable shall be reflected in an amended Schedule 3 of the MLA to be signed by the Parties by way of a supplemental agreement to the MLA. 3. INFORMATION ON SUNWAY, SUNCITY, SMC, THE MANAGER, THE TRUSTEE AND SUNREIT 3.1 Sunway Sunway 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 Sunway are RM10,000,000,000/- and RM1,723,489,001/- respectively. The principal activities of Sunway are investment holding and provision of management services. 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 RM251,354.14 respectively. The principal activity of SunCity is investment holding. 3.3 SMC
3.4 The Manager The Manager, a wholly-owned subsidiary of Sunway, 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 Level 10, Tower One, RHB Centre, Jalan Tun Razak, 50400 Kuala Lumpur. It is registered as a trust company under the Trust Companies Act, 1949. The principal activity of the Trustee is providing professional retail and corporate trustee services.
3.6 SUNREIT 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. 4. RATIONALE
5.2 On Net Asset Value (“NAV”) The Supplemental Letter to the MLA will have no material impact or changes to the unaudited NAV of SUNREIT at the time of completion. 5.3 On Earnings The Supplemental Letter to the MLA is not expected to have any material effect on the earnings of SUNREIT for the financial year ending 30 June 2014. 6. APPROVALS REQUIRED Pursuant to the Securities Commission’s Guidelines on Real Estate Investment Trusts, the Supplemental Letter to the MLA does not require approvals from the Securities Commission or the unitholders of SUNREIT. Tan Sri Dato' Seri Dr Jeffrey Cheah Fook Ling and Sarena Cheah Yean Tih are Directors of Sunway as well as the Manager. Dato’ Ngeow Voon Yean is Director of the Manager and has 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 and Active Equity Sdn Bhd are major shareholders of Sunway and major unitholders of SUNREIT. 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 Supplemental Letter to the MLA.
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 Supplemental Letter to the MLA 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 | 7 Aug 2013 |
Category | General Announcement |
Reference No | SR-130807-44641 |