Far East Orchard

Far East Orchard (FEO)/ Straits Trading Company (STC): Both companies entered a JV agreement, entails - to pursue and conduct hospitality mgmt and related businesses; - invest in real estate used primarily for hospitality purposes and related assets; FEO and STC will hold 70% and 30% respectively of the issued share capital in the JV company. FEO's contribution: 1) 25 hotel and serviced residence management agreements (18 existing agreements, 7 new); 2) $76.2m cash to STC; 3) $21m cash for initial funding for working capital; STC's contribution: 1) Rendezvous Hotel Perth- 336 rooms; 2) Rendezvous Studio Hotel Perth Central- 103 rooms; 3) Rendezvous Grand Hotel Melbourne- 340 rooms; 4) 13 hotel mgmt contracts under Rendezvous Hotels International; 5) $9.0m for initial funding of working capital; Rationale for FEO: i) stable growth in recurring income; ii) transformation into vertically integrated hospitality operator (develop + manage); iii) international exposure into Australia & New Zealand; iv) potential for cross-selling to FEO's existing portfolio in Singapore; v) in line with FEO's long term objectives of delivering growth and enhancing recurring income stream; STC: i) in line with its strategy of transforming its portfolio of businesses into more effective growth engines, each a leading player with economies of scale; ii) unlocking of capital in hotel assets with $76.2m cash received Both: cost savings from mgmt of hospitality operations globally; combine financial resources in pursuing growth and yield accretive acquisitions; transformed into one of the largest hotel operations in Asia Pac;