#1Ermenegildo QUE OUE COMMERCIAL REIT Investor Presentation for Tokyo Non-Deal Roadshow 26 September 2017#2OUE COMMERCIAL RET Important Notice This presentation shall be read in conjunction with OUE Commercial REIT's Financial Results announcement for 2Q 2017 dated 2 August 2017. This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in OUE Commercial REIT ("Units"). The value of Units and the income from them, if any, may fall or rise. The Units are not obligations of, deposits in, or guaranteed by, OUE Commercial REIT Management Pte. Ltd. as the Manager of OUE Commercial REIT (the "Manager"), or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. The past performance of OUE Commercial REIT is not necessarily indicative of the future performance of OUE Commercial REIT. This presentation may contain forward-looking statements that involve risks and uncertainties. All statements regarding future financial position, operating results, business strategies, plans and future prospects of OUE Commercial REIT are forward-looking statements. 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. These forward-looking statements speak only as at the date of this presentation. No assurance can be given that future events will occur, that projections will be achieved, or that assumptions are correct. 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. costs), property expenses and governmental and public policy changes. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager's current view of future events. Investors should note that they will have no right to request the Manager to redeem or purchase their Units while the Units are listed on the Singapore Exchange Securities Trading Limited (the "SGX-ST"). 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. 2#3OUE COMMERCIAL REIT Agenda Overview Financial Performance and Capital Management Portfolio Performance Appendices 3#4OUE COMMERCIAL Overview of OUE C-REIT About OUE C-REIT Quality Portfolio Strong Sponsor ■ OUE C-REIT is a Singapore real estate investment trust listed on the Mainboard of Singapore Exchange Securities Trading Limited with the principal investment strategy of investing, directly or indirectly, in a portfolio of income-producing real estate which is used primarily for commercial purposes ■ OUE C-REIT is managed by OUE Commercial REIT Management Pte. Ltd., a wholly-owned subsidiary of OUE Limited OUE C-REIT's portfolio comprises: ■ OUE Bayfront, a premium Grade A office building located at Collyer Quay between the Marina Bay downtown and Raffles Place in Singapore; ■ One Raffles Place, an integrated commercial development comprising two Grade A office towers and a retail mall located in the heart of the Singapore's central business district at Raffles Place; and ■ Lippo Plaza, a Grade A commercial building located in Huangpu, one of Shanghai's established core CBD locations ■Committed Sponsor in OUE Group which has a 55.5% stake in OUE C-REIT Right of First Refusal over 1 million sq ft NLA of commercial space ■ Sponsor has proven track record in real estate ownership and operations Leverage on Sponsor's asset enhancement and redevelopment expertise 4#5QUE RE COMMERCIAL REIT QUE Premium Portfolio of Assets OUE Bayfront DUE GFA (sq m) NLA (sq m) 46,774.6 Office: 35,342.7; Retail: 1,830.0; Overall: 37,172.7 Committed Occupancy (@ 30 Jun 2017) Office: 98.9%; Retail: 100.0%; Overall: 98.9% Valuation (@ 31 Dec 2016) Valuation Cap Rate (Office): Land Use Right Expiry Completion Year S$1,146.0 m (S$2,864 psf) 3.75% OUE Bayfront & OUE Tower: 99 yrs from 12 November 2007 OUE Link: 15 yrs from 26 March 2010 Underpass: 99 yrs from 7 January 2002 2011 5#6OUE COMMERCIAL Premium Portfolio of Assets OUE Bayfront - Tenants by Trade Sector Food & Beverage 3.1% Business Consultancy` Manufacturing & Distribution 3.4% Energy, Commodities, Maritime & Logistics 4.0% 3.2% Retail & Services 0.9% IT, Media & Telecommunications 5.7% Real Estate & Property Services 7.1% Legal 18.3% Banking, Insurance & Financial Services 54.3% As at June 2017 6#7OUE COMMERCIAL REIT Premium Portfolio of Assets One Raffles Place GFA (sq m) Attributable NLA (sq m) 119,626.3 Office: 56,090.0; Retail: 9,500.0; Overall: 65,590.0 Committed Occupancy (@ 30 Jun 2017) Office: 95.0%; Retail: 87.7%; Overall: 93.8% (1) Valuation (@ 31 Dec 2016) Valuation Cap Rate (Office): Land Use Right Expiry Completion Year S$1,738.3 m (S$2,462 psf) 3.65% -4.00% Office Tower 1: 841 yrs from 1 Nov 1985; Office Tower 2: 99 yrs from 26 May 1983; Retail: ~75% of NLA is on 99 yrs from 1 Nov 1985 Office Tower 1: 1986; Office Tower 2: 2012; Retail (major refurbishment): 2014 7 (1) Based on OUB Centre Limited's 81.54% interest in One Raffles Place. OUE C-REIT has an 83.33% indirect interest in OUB Centre Limited held via its wholly-owned subsidiaries#8OUE COMMERCIAL Premium Portfolio of Assets One Raffles Place - Tenants by Trade Sector Manufacturing & Legal Distribution 4.2% Real Estate & Property Services 4.8% Others 0.7% 2.5% Food & Beverage 7.7% IT, Media and Telecommunications 12.7% Business Consultancy 12.8% Energy, Commodities, Maritime & Logistics 14.2% Banking, Insurance & Financial Services 25.5% Retail & Services 14.4% As at June 2017 8#9OUE COMMERCIAL REIT Premium Portfolio of Assets Lippo Plaza PACT AFFLE GFA (sq m) Attributable NLA (sq m) 58,521.5 Office: 33,538.6; Retail: 5,685.9; Overall: 39,224.5 Committed Occupancy (@ 30 Jun 2017) Office: 100.0%; Retail: 90.4%; Overall: 98.6% (1) Valuation (@ 31 Dec 2016) Land Use Right Expiry Completion Year (1) Based on 91.2% strata ownership of Lippo Plaza RMB2,524.0 m / RMB43,129 psm (S$514.5m) (2) 50 yrs from 2 July 1994 1999 (2) Based on SGD:CNY exchange rate of 14.909 as at 30 June 2017 6#10OUE COMMERCIAL Premium Portfolio of Assets Lippo Plaza - Tenants by Trade Sector Food & Beverage 1.2% Legal 0.2% Energy, Commodities, Others Maritime & Logistics 2.5% 2.5% Real Estate & Property Services 7.5% Pharmaceuticals & Healthcare 7.6% IT, Media and Telecommunications 10.1% Business Consultancy 13.2% Banking, Insurance & Financial Services 13.9% Retail & Services 27.3% Manufacturing & Distribution 14.0% As at June 2017 10#11COMMERCIAL QUE RE By Asset Value (1) Lippo Plaza 16.5% Portfolio Composition One Raffles Place 46.6% By Revenue Contribution (2) By Segment Income (2) Lippo Plaza 19.6% OUE Bayfront 36.9% OUE Bayfront 35.8% (1) (2) One Raffles Place 44.6% Retail 16.9% Based on independent valuations as at 31 December 2016 and OUE C-REIT's proportionate interest in One Raffles Place For 2Q 2017 and based on OUE C-REIT's attributable interest in One Raffles Place 11 Office 83.1%#12OUE COMMERCIAL Well-Diversified Portfolio Tenant Base Pharmaceuticals Food & Beverage Manufacturing & Distribution 5.9% 5.0% & Healthcare Others 1.7% 0.8% Real Estate & Property Services 6.1% Legal 7.1% Energy, Commodities, Maritime & Logistics 8.6% Business Consultancy 9.9% IT, Media & Telecommunications 10.0% Banking, Insurance & Financial Services 32.3% Retail & Services 12.6% As at June 2017 12#13COMMERCIAL Quality and Diversified Tenant Base QUE REIT • Top 10 tenants contribute approximately 28.4% of gross rental income 8.9% Bank of America Merrill Lynch 3.8% WALE by NLA 3.8 years 2.6% 2.4% 2.2% 2.0% 1.8% 1.8% 1.5% 1.4% L Brands Hogan Lovells OUE Limited Allen & Overy Lee & Lee LLP Virgin Active Akamai Dentsu Aegis Singapore Pte Technologies Network Asia Ltd Singapore Pte Pacific Pte Ltd Suites Pte Ltd Raffles Business Citrix Systems Singapore Pte Ltd Ltd As at 30 Jun 2017 13#14Financial Performance & Capital Management oneRafflespiace SPA#15OUE COMMERCIAL RET Delivered Sustainable Distribution Delivered sustainable distribution to Unitholders since IPO Distribution Since IPO In S$ million 16.8% CAGR(2) 67.4 45.9 FY2014(¹) 56.1 FY2015 FY 2016 34.5 1H 2017 (1) Period commencing from OUE C-REIT's listing date of 27 January 2014 to 31 December 2014 (2) FY2014-FY2016 compound annual growth rate (CAGR) computed on the basis of annualised amount available for distribution for the period from OUE C- REIT's listing date of 27 January 2014 to 31 December 2014 15#16COMMERCIAL 2Q 2017 vs 2Q 2016 QUE RET 2Q 2017 2Q 2016 Change Revenue (S$m) 44.2 45.7 -3.2% Net Property Income (S$m) 34.8 35.2 -1.3% Amount Available for Distribution 17.8 17.7 +0.6% to Unitholders (S$m) DPU (cents) 1.15 1.36 -15.4% Pro forma DPU (cents) 1.15(1) In 2Q 2017, OUE C-REIT's property portfolio achieved stronger operational performance. Revenue however was 3.2% lower YoY due to lower one-off income recognised during the quarter With lower operating expenses and lower borrowings costs, 2Q 2017 amount available for distribution was S$17.8 million, 0.6% higher YoY (1) 2Q 2016 pro form a DPU has been calculated based on 2Q 2016 amount available for distribution of S$17.7 million and the number of units in issue and to 16 be issued as at 30 June 2017 which included the 233.3 million new units issued pursuant to the private placement in March 2017#17OUE COMMERCIAL RET 2Q 2017 vs 2Q 2016 S$'000 Revenue Property operating expenses Net property income Other income Amortisation of intangible asset Manager's management fees Other expenses 2Q 2017 2Q 2016 Change (%) 44,214 45,688 (3.2) (9,445) (10,460) (9.7) 34,769 35,228 (1.3) 756 759 (0.4) (1,113) (1,118) (0.4) (2,367) (3,528) (32.9) (583) (462) 26.2 Interest income 180 29 NM (1) Interest expense (9,423) (9,873) (4.6) Amortisation of debt establishment costs (1,353) (1,989) (32.0) Net fair value movement of financial derivatives 655 (1,929) NM Foreign exchange differences (112) (276) (59.4) Total return before tax 21,409 16,841 27.1 Tax expense (4,489) (4,460) 0.7 Total return for period 16,920 12,381 36.7 Non-controlling interests (1,969) (1,732) 13.7 CPPU holder distribution (1,371) (1,368) 0.2 Distribution adjustments 4,253 8,453 (49.7) Amount available for distribution to Unitholders 17,833 17,734 0.6 17 (1) NM: Not meaningful#18OUE COMMERCIAL Healthy Balance Sheet S$ million Investment Properties Total Assets As at 30 Jun 2017 3,398.9 3,457.6 1,185.7 1,378.5 Net Assets Attributable to Unitholders 1,320.9 Loans and borrowings Total Liabilities Units in issue and to be issued ('000) NAV per Unit (S$) 1,541,257 0.86 18#19COMMERCIAL Capital Management OUE RET • • With 80.7% of debt on fixed rate basis, earnings are mitigated against fluctuations in interest. rates. Every 25bps increase in floating interest rates is expected to reduce distribution by S$0.6 million per annum, or 0.04 cents in DPU In September 2017, diversified OUE C-REIT's sources of funding with the debut issue of S$150 million 3.03% fixed rate notes due 2020, largely for partial refinancing of debt due in 2018 Aggregate Leverage Total debt As at 30 Jun 2017 36.4% As at 31 Mar 2017 36.2% S$1,151m (1) S$1,145m (2) Weighted average cost of debt 3.4% p.a. 3.4% p.a. Average term of debt 3.1 years 3.3 years % fixed rate debt 80.7% 81.2% Average term of fixed rate debt 2.3 years 2.5 years Interest service ratio 3.3x 3.2x (1) Based on SGD:CNY exchange rate of 1:4.909 as at 30 June 2017 and includes OUE C-REIT's share of OUB Centre Limited's loan (2) Based on SGD:CNY exchange rate of 1:4.919 as at 31 March 2017 and includes OUE C-REIT's share of OUB Centre Limited's loan 19#20OUE COMMERCIAL RET • Debt Maturity Profile as at 30 Jun 2017 No refinancing requirement in 2017 In September 2017, extended debt maturity profile with the debut issuance of S$150 million fixed rate notes due 2020 for partial refinancing of 2018 borrowings S$ million 241 295 2017 2018 2019 2020 ■SGD Term Loan ■RMB Term Loan 2021 580 2022 Share of OUB Centre Limited's Loan 29 2023 2024 Medium Term Note 20#21Portfolio Performance#22OUE COMMERCIAL Resilient and Stable Portfolio • (1) One Raffles Place achieved six consecutive quarters of increase in committed occupancy since acquisition in October 2015 Lippo Plaza achieved 100% committed office occupancy in 2Q 2017 OUE C-REIT's Portfolio Committed Occupancy 100% 98.0% 96.4% 94.8% 92.0% 94.3% 94.5% 94.4% 94.8% 95.8% 95% 90% 85% 80% 75% 70% 2013(1) 2014 OUE Bayfront 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 Lippo Plaza One Raffles Place Portfolio Proform a committed occupancy as at 30 September 2013 as disclosed in OUE C-REIT's Prospectus dated 17 January 2014 22#23OUE COMMERCIAL RET Singapore Shanghai Average Passing Office Rents S$ psf/mth 11.82 11.84 11.85 11.85 11.75 11.67 11.42 10.58 10.40 10.26 10.27 10.33 10.36 10.28 10.21 10.14 2013(1) 2014 2015 RMB psm/day 1Q16 2Q16 3Q16 ■OUE Bayfront ■One Raffles Place 4Q16 1Q17 2Q17 9.89 9.88 9.84 9.78 9.67 9.55 9.45 9.14 9.06 2013(1) 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Lippo Plaza (1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REIT's Prospectus dated 17 January 2014 23#24OUE COMMERCIAL RET Office Occupancy Higher Than Market Singapore Shanghai 4.2 ppt 1.1 ppt 98.9% 100.0% 2.0 ppt 95.0% 1.5 ppt 94.1% 0.5 ppt 87.1% III OUE Bayfront One Raffles Place Singapore Market Occupancy (1) Lippo Plaza Shanghai Market Occupancy (1) (1) Singapore Market Occupancy refers to Core CBD office occupancy for 2Q 2017 according to CBRE Research. Shanghai Market Occupancy refers to Shanghai Grade A office occupancy as at 2Q 2017 according to Colliers International Shanghai 24#25OUE COMMERCIAL REIT Committed Office Rents In Line with Market Average Expired 2Q 2017 Committed Rents (1) Market Rents Rents Average Passing Rents in Jun 2017 OUE Bayfront S$15.50 psf/mth S$10.85 S$14.00 psf/mth S$8.95 psf/mth (2) S$11.42 psf/mth One Raffles Place S$10.66 psf/mth S$8.00 S$11.80 psf/mth S$8.95 psf/mth (2) S$10.14 psf/mth Lippo Plaza RMB9.37 psm/day - RMB8.60 RMB11.00 psm/day RMB9.30 psm/day (3) RMB9.84 psm/day The average of new and renewal office rents committed at OUE Bayfront and One Raffles. Place in 2Q 2017 were at a premium to the market office rent of S$8.95 psf per month (2), although some renewals were committed at rents below expiring rates. Average passing office rent for Lippo Plaza in June 2017 of RMB9.84 psm per day was 1.8% higher Yo Y (1) Committed rents for renewals, rent reviews (if any) and new leases (2) Refers to Grade A CBD Core office rents in Singapore. Source: CBRE Singapore MarketView 2Q 2017 (3) Refers to CBD Grade A office rents in Puxi. Source: Colliers International Shanghai Research and Forecast Report, 2Q 2017 25#26COMMERCIAL QUE RET New Tenants at One Raffles Place Shopping Mall New tenants signed to-date include existing brands as well as new-to-market concepts. Management is focused on rebalancing the retail tenant mix at One Raffles Place Shopping Mall for a more sustainable tenant profile given the competitive environment JEWAL COFFEE foodjunction 福将坊 Twelve CUPCAKES 亞坤 R Ya Kun Kaya Toast Coffeestall since 1944 APRIL'S BAKERY SEATTLE PIKE Chowder amamoto cafe Japanese fermented rice drink HAPPY TUMMY Salad & Wrap urban mix taste the world in a bowl Giovanni L. GELATO DE LUXE P PhillipCapital Your Partner In Finance // parallel THE DENTAL IMPLANT CENTRE OneCare Medical 26#27OUE COMMERCIAL Lease Expiry Profile - Portfolio ■By NLA By Gross Rental Income Completed (Year-to-date) 25.7% 26.5% 25.9% 24.3% 14.9% 16.3% 4.6% 19.1% 17.6% 13.3% 12.7% 8.2% 5.9% 4.5% 4.0% 4.2% 2017 2018 2019 2020 2021 2022 2023 and beyond WALE (1) of 2.6 years by NLA (2) and 2.8 years by Gross Rental Income (1) "WALE" refers to the weighted average lease term to expiry (2) "NLA" refers to net lettable area As at 30 Jun 2017 27#28COMMERCIAL QUE RET Lease Expiry Profile - OUE Bayfront Close to 80% of OUE Bayfront's gross rental income is due only in 2019 and beyond In 2Q 2017, forward renewed 4.8% of 2018 lease expiry by gross rental income By NLA By Gross Rental Income Completed (Year-to-date) 36.2% 33.6% 12.9% 12.0% 9.0% 9.8% 2.4% 2.9% 2017 2018 25.0% 25.6% 20.5% 18.7% 4.6% 4.5% 2019 2020 2021 WALE of 3.0 years by NLA and Gross Rental Income 2022 As at 30 Jun 2017 28#29OUE COMMERCIAL Lease Expiry Profile - One Raffles Place ■ By NLA By Gross Rental Income Completed (Year-to-date) 30.7% 34.3% 21.8% 21.6% 21.2% 18.6% 14.1% 19.0% 6.1% 2017 8.6% 8.0% 4.0% 3.9% 4.2% 3.9% 6.9% 2018 2019 2020 2021 2022 2023 and beyond WALE of 2.4 years by NLA and 2.3 years by Gross Rental Income As at 30 Jun 2017 29#30COMMERCIAL QUE RET • Lease Expiry Profile - Lippo Plaza Substantially renewed 2017 lease expiry by gross rental income ■By NLA By Gross Rental Income Completed (Year-to-date) 34.0% 30.5% 29.2% 28.0% 22.1% 19.2% 20.9% 15.0% 11.9% 7.0% 4.8% 4.8% 4.3% 3.7% 2.0% 2.8% 2017 2018 2019 2020 2021 2022 2023 and beyond WALE of 2.6 years by NLA and 3.5 years by Gross Rental Income As at 30 Jun 2017 30#31Appendices Singapore Office Market Shanghai Office Market QUE#32COMMERCIAL Overview of Singapore Office Sector QUE REIT Singapore's CBD - Comprises traditional areas of Raffles Place, Shenton Way/Robinson Road/Cecil Street as well as Marina Bay - Many established global financial institutions and headquarters of MNCs are located in Marina Bay and Raffles Place, while Shenton Way/Robinson Road/Cecil Street is popular with professional services companies and other financial, insurance and real estate companies ✓Historical supply-demand conditions - Annual average island-wide demand for office space from 2007 - 2016 was about 1.1 million sq ft, compared to annual average supply of 1.4 million sq ft over the same period. For 1H 2017, island-wide net absorption was 876,000 sq ft, compared to net new supply of 1.2 million sq ft. CBD Office Locations (Singapore) Breakdown of Office Stock in Singapore (million sq ft)(¹) River Valley/ Singapore River Shenton Way/ Rabimon Road/ Cedi Street: 0.5 million sq m Arson Road Tanjong Pagar (1) CBRE Pte Ltd, 2Q 2017 CBD Marina Bay Bras Bras Selegle Road Raffles Place: 11mon sqm Beach Road North Bridge Hood QUE Bayfint DUE Tower and QUE Link Ruffles Face (CD Decentralised Area 13.0 23.4% Marina Centre CBD Fringe 15.2 27.2% Marina Bay (CBD) Shenton Way/Robinson Road/Street (CB0) - Fringe CBD Locations Core CBD 27.6 49.4% 22 32#33OUE COMMERCIAL ■ REIT Singapore Office Market Core CBD office occupancy slipped 1.5 ppt QoQ to 94.1% as at 2Q 2017 with the completion of two new office developments, while Grade A office rents stabilised at S$8.95 psf/mth unchanged from the previous quarter Net absorption was 923,810 sq ft in 2Q 2017, boosted by pre-commitments in the newly completed office buildings. Otherwise, leasing activity remains tepid with mostly small and medium-sized transactions 11.40 11.20 11.06 11.00 11.30 10.95 10.90 10.60 10.60 10.30 10.60 10.25 10.40 10.10 9.80 9.75 9.90 9.58 9.55 9.55 9.55 96.6% 95.7% 95.8% 96.1% 96.2% 9.50 9.30 9.10 95.8% 8.95 8.95 95.9% 95.0% 95.2% 95.2% 95.7% 95.2% 95.8% 94.4% 95.6% 95.1% 93.2% 93.5% 93.1% 93.2% 92.3% 92.2% 91.6% 91.2% 90.7% 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 Grade A rents (S$ psf/mth) Core CBD Occupancy Source: CBRE 94.1% 33#34OUE COMMERCIAL RET Demand and Supply vs Office Rental Island-wide Office Demand, Supply vs Office Rental ('000 sq ft) 7,000 6,000 5,000 4,000 (S$ psf/mth) 20 18 16 14 12 3,000 10 2,000 1,000 0 -1,000 86420 -2,000 -3,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Demand (LHS) Supply (LHS) Prime Office Rental (RHS) Prime Grade A Office Rental (RHS) Source: URA statistics, CBRE Research 2Q11 was the last period where CBRE provided Prime office Rental data. Prime Grade A office rental data not available prior to 1Q02 34#35COMMERCIAL Known Office Supply Pipeline QUE RET Office Supply Pipeline in Singapore's CBD and Fringe CBD '000 sq ft 1,200 1,000 800 128 600 984 400 808 654 556 200 0 2017 Note: Excluding strata-titled office Source: CBRE Research, 2Q 2017 2018 2019 2020 Fringe CBD Marina Bay ■Shenton Way / Robinson Road 35#36COMMERCIAL QUE RET Overview of Shanghai Office Sector ✓ Puxi, the traditional business and commercial hub of Shanghai - Key office and commercial districts within Puxi are concentrated in the Jing'an, Huangpu and Xuhui areas, which together form the traditional downtown CBD of Shanghai - Puxi draws international retailers, service providers and MNC headquarters operations due to its good connectivity and excellent amenities, while Pudong's Lujiazui caters to financial institutions due to policy and incentive-driven agglomeration Historical supply-demand conditions - The six main districts that make up Shanghai core CBD provide Grade-A office stock of approximately 6.4 million sq m as at 1Q 2017 - – Average net demand for Shanghai CBD Grade A office from 2012-2016 was 290,000 sq m, compared to average net supply of 340,000 sq m over the same period. In 1H 2017, net absorption rebounded to 381,000 sq m, exceeding the full year net absorption of 79,000 sq m for 2016 Key Districts of Shanghai CBD Breakdown of CBD Grade-A office stock ( million sq m) (1) Legend: Cone CBD Decentralised Area New Jiangwan City Hongkou Zhabei Zhuyuan 0.7 10.4% Xuhui 0.5 7.4% Putuo Lujiazui” Hongqiao Transportation Jingan Zhuyuan Huangpu Changning Huamu Changning 0.9 13.3% Xuhus Xuhui Binjiang Post Expo Yaohua FQiantan (1) Colliers International Research, 2Q17 Lujiazui 2.2 32.6% Jing'an 1.1 16.3% Huangpu 1.4 20.0% 36#37OUE COMMERCIAL REIT ☐ Shanghai Office Market In 2Q 2017, Shanghai CBD Grade A office occupancy edged down 0.5 ppt QoQ to 87.1% due to significant new office completions while CBD Grade A office rents were RMB10.3 psm/day, marginally lower by 0.3% QoQ. In the Puxi area, Grade A office occupancy increased by 0.4 ppt QoQ to 87.6% as at 2Q 2017, with rents 0.7% QoQ lower at RMB9.3 psm/day 8.0 8.2 8.4 8.6 8.7 8.8 8.8 8.8 8.9 8.9 9.0 9.1 9.2 9.3 9.5 9.7 9.9 10.1 10.310.3 10.510.410.410.3 96.0% 95.0% 94.4% 93.8% 93.3% 92.8% 92.6% 92.2% 92.2% 94.0% 91 91.7% 90.8% 92.8% 92.6% 92.8% 90.9% 92.1% 90.9% 90.5% 89.8% 90.2% 87.6% 87.1% 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 Source: Colliers International CBD Grade A Rents (RMB psm/day) Shanghai CBD Grade A Occupancy 37#38OUE COMMERCIAL RET Demand, Supply and Vacancy Shanghai CBD Grade A Net Absorption, New Supply and Vacancy Rate ('000 sq m) 700 600 500 400 300 200 100 Source: Colliers International 16.0% 14.0% abour 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2009 2010 2011 2012 2013 2014 2015 2016 Net Demand (LHS) New Supply (LHS) Vacancy rate (RHS) 38#39COMMERCIAL QUE RET Source: JLL '000 sq m 800 CBD Grade A Office Supply Pipeline Office Supply Pipeline in Shanghai CBD 739 700 600 500 400 400 300 200 100 0 2017 2018 247 211 140 2019 2020 ■Lujiazui ■Zhuyuan ■Changning Xuhui Jing'an Huangpu 2021 39#40Ermenegildo QUE OUE COMMERCIAL REIT Thank you