Straits Trading / Far East Orchard

Straits Trading / Far East Orchard: reference announcement dated 15 Apr 2013, in relation to the 30/ 70 JV between Straits Trading Company (STC) and Far East Orchard (FEO) to: i) pursue and conduct hospitality mgt and hospitality-related businesses and ii) invest in real estate used primarily for hospitality purposes and hospitality-related assets. The JVCo will receive the following assets from FEO, valued at a combined $236.2m: o 25 hotel and serviced residence mgt agreements (comprising 18 existing agreements and 7 new and pipeline agreements), o One property mgt agreement, o All other assets related to conducting the hospitality mgt business associated with the above, o $76.2m cash The JVCo will receive the following assets from STC, valued at a combined $177.4m: o Three 4 to 4.5 star hotels being, i) Rendezvous Hotel Perth (to be rebranded as Rendezvous Grand Hotel Perth” upon completion of its renovation programme due in 2H13), ii) Rendezvous Studio Hotel Perth Central, and iii) Rendezvous Grand Hotel Melbourne, and o Rendezvous Hotels International Pte Ltd, which operates a network of 13 hotels under the “rendezvous” umbrella brand, located in key countries across the Asia-Pacific region incl Australia, China, New Zealand and Singapore. Based on a paper analysis, the transaction slightly favors Straits Trading, as FEO takes a small haircut on the value of its asset contributions. As such, based on FY12 numbers, FEO’s NTA/sh drops slightly from $2.57 to $2.54.