#1CapitaLand 凯德 SE KFC 肯德基 CapÅtaLand 凯德七宝 购物广场 劉德 KTV HAOLEDIO 3. 贝 I 莜 西贝 19 莜面村 莜面村 POLYMAKERS 5F 七宝物 优衣库 1-212 UNI QLO EPHORA ZARA F PULLS BEAR faiz CapitaLand Retail China Trust CapitaLand Retail China Trust Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal 1 February 2019#21 ✓ Disclaimer This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. 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. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other developments or companies, shifts in expected levels of occupancy rate, property rental income, charge out collections, changes in operating expenses (including employee wages, benefits and training costs), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither CapitaLand Retail China Trust Management Limited (the "Manager") or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation. The past performance of CapitaLand Retail China Trust ("CRCT") is not indicative of the future performance of CRCT. Similarly, the past performance of the Manager is not indicative of the future performance of the Manager. The value of units in CRCT ("Units") and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, 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. Investors should note that they will have no right to request that the Manager redeem or purchase their Units for as long as the Units are listed on Singapore Exchange Securities Trading Limited (the "SGX-ST"). It is intended that holders of Units ("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. This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for Units. Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal#3✓ Contents Overview Investment Rationale Transaction Details Funding of the Acquisition 2 Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal CapitaLand Retail China Trust#43 ✓ Transaction Overview • CapitaLand Retail China Trust ("CRCT") has entered into a co-operative framework agreement ("FA") in relation to a bundle deal to Acquire a property located in Yuquan District, Hohhot, China ("Yuquan Mall") and Divest CapitaMall Saihan in Hohhot, China In accordance with terms of the FA, ➤ CRCT shall acquire Yuquan Mall at a consideration of RMB 808.3 million (RMB 8,079 psm GFA) ➤ CRCT shall divest the company holding CapitaMall Saihan, with an agreed value of RMB 460.0 million (RMB 10,969 psm GFA) Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal CapitaLand Retail China Trust#5✓ Transaction Overview i Divestment of CapitaMall Saihan Rejuvenate portfolio with higher quality asset Acquisition of Yuquan Mall 4 Capitaland KFC Gross Floor Area Capitaland) on HOURS 41,938 sqm 41,938 sqm Value creation through proactive portfolio reconstitution strategy Gross Floor Area 100,047 sqm Gross Floor Area 76,309 sqm (excl. car park) Land Use Right Expiry 2049 MRT Connection Yes¹ Carpark Yes Anchor space (by Net Lettable Area) 28% (estimated) Gross Floor Area (excl. car park) Land Use Right Expiry 2041 MRT Connection No Carpark No Anchor space 45% (by Net Lettable Area) Notes: 1. Basement expected to be directly connected to Metro Line 2 which is slated to commence operation by end of 2020. Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal CapitaLand Retail China Trust#6✓ Overview of Yuquan Mall Location Description E' Er Duo Si Street, Yuquan District, Hohhot, Inner Mongolia Autonomous Region An eight-storey shopping mall comprising seven levels above ground and one basement level In phases since 2016 Year of Completion Land Use Expiry 2049 Site Area 82,508 sqm¹ GFA 100,047 sqm GFA Agreed Property Price 76,309 sqm (excl. car park) Property Valuation³ Car Park 408 lots (B2 - B3) Direct link to Nuo HeMule Connectivity Station on Metro Line 22 肌肤缺的水 TA们补给你 10 肌肤肤的水 TA们补给你 RMB 808.3 million (RMB 8,079 psm GFA) RMB 856.0 million (RMB 8,556 psm GFA) 5 Notes: 1. Consists of the entire mixed-use development which Yuquan Mall is located on. 2. Slated to commence operation by end 2020. 3. Valuation as at 31 December 2018 by Cushman & Wakefield International Property Advisers (Shanghai) Co., Ltd.#7i Hohhot, Capital Of Inner Mongolia • • Important gateway connecting north China with Mongolia and Russia Important portal in the "Belt & Road Initiative" due to its strategic position Benefit from growth opportunities within the region Inner Mongolia's foreign trade with countries participating in the "Belt & Road Initiative" reached RMB 69.9 billion in 2018, up by 14.6% year-on-year¹ Construction of metro lines and high speed railways to improve city's attractiveness First high-speed railway connecting Hohhot, Zhangjiakou and Beijing expected to commence operations by end 2019 Metro travel time between Beijing and Hohhot shorten to less than three hours Nepal Novosibirsk Новосибирск Krasnoyarsk Красноярск Bhutan Bangladesh Russia Mongolia China Inner Mongolia North Korea Beijing 北京 Seoul 서울 Hong Kong South Korea Yellow Sea Shanghai 上海 East China Sea Taipei Taiwan Notes: 1. Source: Xinhua News 6 Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal INNER MONGOLIA O Hohhot -400km Beijing 北京 HEBEI Tianjin 天津 CapitaLand Retail China Trust#87 内蒙古少数民族群众 文化体育运动中心 ✓ Development Of Hohhot City Capturing opportunities from continuous urbanisation Growing retail spending power Urban disposable income per capita grew by 8.2% to RMB 43,518 in 20171, above national's average² Increasing entry entry of of better quality international and domestic retail brands E.g. Innisfree, Kiehl's, Michael Kors, Pandora, FILA, Calvin Klein, Xiabu Xiabu Participating with new catchment growth as the city expands southwards Meeting greater demand for better quality shopping malls due to rising middle-class consumer base and sophisticated -白菜沟山 西沟 主蕊梁 小东沟 Mountainous Region 召歌沟 红格里沟 灯笼树沟 【营子沟 「京鐵高速 内蒙古医科大学 (南校区 内蒙古能源 学院 内蒙古商贸 △职业学院 外语职业学院 「大青山野生 动物园 成吉思汗公园 新城区” 乌素图国家, -森林公园 Airport City 呼和浩特市 Center SEE 科尔沁南立交桥 青城公园 Yuquan RETO Mall 甲兰言站 金 呼和浩特南站 三间房。 4 南湖湿地公园 Southwards Expansion 金河立交 ④ 蒙古风情园、 DAL 昭君立交桥 G0601 黒板 Notes: 1. Source: Hohhot Bureau of Statistics 2. Source: National Bureau of Statistics Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal CapitaLand Retail China Trust#9Investment Rationale 65306 A239 CELINE HOCANO JIN YU XING TIAN DE SHOPPING GEOFFDET DEEME M Artist's Impression AIDC#10✓ Investment Rationale 9 1 Expand presence in city with good track record 2 Redeploy capital to secure a higher quality and more strategically located asset with excellent connectivity 3 Enlarging CRCT portfolio and extension of land tenure 4 Leverage on new building specifications to capture market opportunities Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal CapitaLand Retail China Trust#111 Expand Presence In City With Good Track Record Leverage on experienced management team on the ground Strong retail mall expertise and local network provide competitive edge CapitaMall Saihan displayed healthy performance over the years despite limitations ➤ Well-established CapitaMall brand name within Hohhot Ability to tap on city's growth and attract higher quality brands with new mall's better specifications 49,474 Healthy performance over the last 5 years Gross Revenue (RMB' 000) Net Property Income (RMB' 000) CAGR: 7% 62,670 64,061 60,824 55,663 CAGR: 11% 38,730 35,805 31,585 29,909 25,681 2013 2014 2015 10 2016 2017 2013 Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal 2014 2015 2016 2017#12. 2 Higher Quality And More Strategically Located Asset With Excellent Connectivity Newer and larger asset with better specifications increase competitiveness Brand new asset more than double the size of CapitaMall Saihan • 2 basement levels of car park • Direct link to upcoming metro line • Enjoys excellent frontage linked to 2 main arterial roads Arterial Road Yuquan Mall Arterial Road CapitaMall Saihan 11 Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal CapitaLand Retail China Trust#1312 2 Higher Quality And More Strategically Located Asset With Excellent Connectivity Located within a well-established and growing commercial hub ② 内蒙古财经大学 新城区 乌素图国家 ②森林公园 赛马场北路 乌素图村 海拉尔西街 光明大街 回民区 「孔家营村 ·鄂尔多斯西街 县府街 兴安北路 成吉思汗公园 ●阿尔泰游乐园 蒙牛二桥 方燕路 ⑦ 呼和浩特 青山村 5km ③ 内蒙古博物院 XO 蒙牛四桥 呼和浩特站 @内蒙古展览馆 攸攸板村 ④ 西场站 新华大街- 金内蒙古清 将军衙署 乌兰察布东街 (西 内蒙古国际 会展中心 中山路 5km 呼和浩特市 植物园 ③ 内蒙古大学 青城公园 鄂尔多斯东街 (黄大召无量寺 学府花园社区 (月) 皇家演艺广场。 [起点 当浪土牧村 后八里庄村 5km 南二环快速路 南二环快速路 分 南 赛罕区 路 Yuquan 高校生活圈 西鼓楼村 Mall 滨河北地 ( 东喇嘛营村剧场 正喇嘛营村 云中路 ● 水上公园 ②内范学 金桥生活圈 玉泉区 5km® 南生活圈金桥 0 东黑河村 格尔图村 西二道河 章盖营 姜家营村 • Located directly opposite CapitaMall Saihan Part of a mixed-used development including residential, SOHO, office and retail >700,000 residents within 5km radius • Potential additional catchment ➤ Residential and office population from the mixed-use development completed recently Targeted at mid-income workers, families and students Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal CapitaLand Retail China Trust#1413 2 Higher Quality And More Strategically Located Asset With Excellent Connectivity Excellent connectivity and accessibility *生动物园 (under construction) 京新高速公路 3001 4年生态园 宽心品坍 G7 G110 S104 ▲元山圪旦 角大崀山野 Metro Line 2 职业学院 -内蒙古警察 S101 北二环路 Existing G110 Airport ZAR 县滨河公 我阿尔泰游乐园 1012 呼和浩特 白塔机场 乌素图国家 西森林公园 美安养院 《苏雅拉公园 东营子 G110 德国际学院 #比郊么 Railway Interchange Station Station 1 构件街立交桥 Metro Line 1 厂库伦村 (under construction) G7 乌素图召 典 攸攸板乡 1805 鼓•豆交桥 • O Inner Ring 刀刀板村 《满都海公司 Rd ● 呼和浩特 锌市植物园 OP 挂件 或公园 小厂库伦村 NuoHeMele 美五塔寺 Station |赛罕区 当浪出牧村 仕 公园 ·达尔架大东营村 Zhongshan Rd Yuquan Mall CapitaMall Saihan 助传培址: 合林村 辛家营村 六牛村 西古楼村 Seamlessly connected to NuoHeMule station (Metro Line 2) 3 stops away from interchange station, Xinhua Square Metro Line 2 expected completion 2H 2020, Metro Line 1 expected completion end of 2019 At intersection of Inner Ring Road and a north-south thoroughfare Located within 5km from Hohhot Railway Station Gateway to the southern Hohhot expansion Southwards Expansion Opening of metro lines will further enhance accessibility and boost traffic Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal CapitaLand Retail China Trust#15• 3 Enlarging CRCT Portfolio And Extension Of Land Tenure Boosts long term growth and resilience • Portfolio gross floor area to grow by 7% • Enlarges portfolio by 2% to RMB 16,102 million¹ Refreshes portfolio with asset that has an additional land tenure of 8 years ➤ Swapped Capita Mall Saihan that has the earliest land tenure expiry among CRCT's assets Gross Floor Area 808,940 Pre-Transaction Notes: (sqm) +7% 867,049 Post-Transaction Investment Properties (RMB million) 16,102 +2% 15,754 T Pre-Transaction Post-Transaction 14 1. Based on 100% stake in all CRCT's properties as at 31 December 2018. Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal Land Use Right Expiry 2041 +8 years 2049 CapitaMall Saihan Yuquan Mall CapitaLand Retail China Trust#1615 • 4 Leverage On New Building Specifications Opportunity to broaden trade offerings and introduce new concepts Proportion of anchor tenants reduced to -28% Examples of New Brands Targeted TOYSЯUS Newer and bigger mall provide opportunity to: ➤Bring in new retail concepts Attract higher quality tenants Strengthen exposure towards higher demand trades (eg. F&B, children and experiential) Enhances CRCT's overall tenant diversification and creates synergy across portfolio SiSYPHE 西西弗书店 PARK BOOKS & UP COFFEE PUMA 玩具苔斗城 innisfree (Hi) BURGER 海底捞火锅 KING 満记 DESSERT 甜品 HONEYMOON Häagen-Dazs LEGO Mini Peace 免運脯 AJISEN RAMEN 味千拉麵 Anchor¹ occupies ~45% of space at CapitaMall Saihan CapitaMall Saihan Anchor¹ expected to occupy only -28% of space at Yuquan Mall Yuquan Mall Anchor By NLA 45% Non- Anchor 55% Notes: 1. Consists of Supermarket and Cinema Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal By NLA Non- Anchor 72% Anchor 28% CapitaLand Retail China Trust#17Transaction Details 03259333 峰上 整体装修 全屋定制 活动立省 50% 400 888 4775 Yuquan Mall, Hohhot, China#1817 ✓ Transaction Steps 1 Takeover Yuquan Mall (Expected 2H 2019) 2 Commence fit-out works and pre-leasing 3 Official opening of Yuquan Mall (Expected 2H 2020) CapitaMall Saihan continues to operate and contribute NPI to CRCT Manager to bring selective tenants over to Yuquan Mall 4 Complete divestment of CapitaMall Saihan (Expected 2H 2020) Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal CapitaLand Retail China Trust#19120 Funding of the Acquisition Artist's Impression#20✓ Funding Structure 19 Optimal funding through capital recycling • Purchase consideration of RMB 808.3 million • To be funded by a combination of existing cash, debt and proceeds from CapitaMall Saihan sale Cash and debt 41% Funding Structure Proceeds from Sale 59% CapitaLand Acquisition of Yuquan Mall in Hohhot, China and Divestment of CapitaMall Saihan in a Bundle Deal Retail China Trust#21CapitaLand 凯德 SE KFC 肯德基 CapÅtaLand 凯德七宝 购物广场 劉德 KTV HAOLEDIO 3. 贝 I 莜 西贝 19 莜面村 莜面村 POLYMAKERS 5F 优衣库 七宝物 1-212 UNI QLO EPHORA ZARA F PULLS BEAR faiz CapitaLand Retail China Trust Thank You For enquiries, please contact: (Ms) Nicole Chen, Investor Relations Direct: (65) 6713 1648, Email: [email protected] 168 Robinson Road, #30-01 Capital Tower, Singapore 068912 Tel: (65) 6713 2888, Fax: (65) 6713 2999