# CapitaLand Ascott Trust — Combination of Ascott Reit & Ascendas Hospitality Trust Briefing

- Event: Combination of Ascott Residence Trust & Ascendas Hospitality Trust Presentation & Analyst Q&A
- Date: 3 July 2019
- Kind: automated speech recognition (ASR) transcript, unverified, no speaker labels
- Source webcast: https://www.youtube.com/watch?v=7Xr49fgexZ4
- Duration: 00:42:36 (~5,636 words)
- Management: Ms. Beh Siew Kim — Chief Executive Officer, Ascott Residence Trust Management Limited; Ms. Kang Siew Fong — Chief Financial Officer, Ascott Residence Trust Management Limited; Mr. Tan Juay Hiang — Chief Executive Officer, Ascendas Hospitality Trust; Ms. Wong Yan Yan — Chief Financial Officer, Ascendas Hospitality Trust; Ms. Kang Wei Ling — Vice President, Investor Relations and Asset Management, Ascott Residence Trust

Unofficial machine transcript. Prepared by SMID Research from the issuer's public webcast recording by automated speech recognition, without a full manual check: expect mis-heard names and figures. No speaker labels are given; timestamps refer to the recording. Not a company publication. CapitaLand Ascott Trust's own investor relations page (https://investor.capitalandascotttrust.com/) is the authoritative record. Copyright in the briefing rests with CapitaLand Ascott Trust; contact contact@smidresearch.com for corrections or removal.

---

## Opening & Transaction Overview

[00:00:01] Thank you everyone. Good morning Very excited to be here to announce the transformational deal the combination of escort residence trust and Ascender's hospitality read So let me take you through what this transaction is about and I know you're all very excited So am I I didn't sleep last night So let me start the presentation right now first. I'll give you an overview of the transaction I'll give you an overview of the transaction, the rationale of the proposed combination, then I'll hand the time over to Jay, the CEO of the Ascender Hospitality Trust, to also

[00:00:49] give you an overview of the transaction from the AHT perspective. I'll wrap up on the administrative requirements on the combination in terms of approval and timeline and we'll both wrap up together on the recap of the transaction. So let me start right now. Overview of this transaction, this slide tells it all, is a proposed 1.9 billion deal to combine Askert REIT and Asender's hospitality trust. Askert REIT will acquire all the the Ascenders Trust units through a trust scheme. So through this combination, we are going to create the largest hospitality trust

[00:01:34] in Asia pack with a total assets of 7.6 billion. This combination is also DPU-accretive to our unit holders and more importantly, it will strengthen our position to grow for our unit holders. These are very important slide. I know it's a bit busy, but it is the essence of the transaction, the scheme consideration. This transaction results in a combination of 1.2 billion consideration. The offer price is 1.0868 per AHT stapled units. be part set in 5% cash and 95% units of ARRT at $130. So it's important to

[00:02:27] understand how we come up with a construct of this offer and issue price. The exchange ratio arising from this offer and issue price is 0.836 times which is derived from the NAV of both audited at an AHT. So in essence, this is a NEF to NEF transaction and represents a fair deal for both unit holders using an exchange ratio of 0.836 time which is based on NEF to NEF and apply Ascot-Ritz latest trading price of $130, which is the issue price, it gives us the offer price

[00:03:13] of a sender's hospitality trust per unit of 1.0868. This consideration represents a fair deal for both unit holders. In terms of distribution, unit holders continue to receive distributions from the Ritz until the completion of this transaction. This is a combined entity structure. Escort-read will establish a business trust which will be stapled with the read and a sender's hospitality read and trust will then become a sub-trust of escort-read and business trust.

## Strategic Rationale & Scale Expansion

[00:04:02] From the transaction, Eskeret RIT will now be a business trust as well, will be a stake put RIT. The investment mandate of the RIT has not changed. We have a global mandate, investments in service apartments, rental housing, hospitality, assets. So we are in the lodging space. Next, I will very quickly tell you the rationale and key benefits of this proposed combination. Three key highlights and benefits of this transaction. We will be the proxy hospitality trust in Asia pack and what that means anyone who wants invest in hospitality real estate

[00:04:51] in Asia pack, they will come to us. To this combination, we have an enhanced portfolio, diversification and resilience. More importantly, we also strengthen our presence in Asia pack where the travel for leisure and business remains robust. Most importantly, of course, is DPU accretive to our unit holders. So next, let me take you through a few slides to explain further on the benefits and rationale of this transaction. This slide tells it all, we will consolidate our position as the largest hospitality trust in Asia PAC. So the two green bar here, AHT and ART, combined total assets will be 7.6 billion.

[00:05:43] We will be 1.6 times larger than the next hospitality trust in Asia PAC and 2.5 times larger than and the next hospitality trust in SREIT. With this gives us scale and size and what that means to our unit holders. We expect there will be increase in terms of coverage, in terms of investors following and community, which will then drive trading volume and liquidity and further lower cost of capital. If you look across the spectrum of all the hospitality, There's no other hospitality trust like RRT. We are truly diversified.

[00:06:29] We are global. We have 88 properties that's resilient and truly diversified. Next. What else in terms of proxy hospitality trust? With this combination, you have firstly let us to in the inclusion of the FTSE narrative index. There are two key criteria in terms of inclusion, contribution from the developed markets, more than 75%, and can see post combination, the developed market contribution is 82%. So we have met one of the criteria. The next in terms of free float on the right-hand side, post the combination, our free float will increase by 50% to 2.4 billion.

[00:07:17] And based on June, the index inclusion threshold is 1.7 billion. So we have clearly met the eligibility criteria for inclusion in the index. So with the inclusion index, we expect positive re-rating on the stock, wider investor base, and higher trading liquidity as well. So what does Proxy Hospitality Trust do to our unit holders? This allows us to have greater access to growth opportunities globally, being the largest people come to you. It increases our capacity to undertake more development activities, and more importantly, increase our debt headroom,

[00:08:04] financial flexibility to fund our accretive acquisition. Our pro forma gearing post, The combination is 36.9% that gives us a debt-tape room of 1 billion to find our acquisition. And I'm sure you have received the MAS consultation paper that may allow us to increase our gearing to 50% and that means we have a debt-tape room of 1.8 billion. We are in a stronger financial position to increase growth for our unit holders. Next I'm going to talk about how this combination will actually enhance the portfolio for or Ascot residents trust. Through the combination, we are adding 14 quality properties

[00:08:53] from the Ascenders Hospitality portfolio. These are properties in Asia pack, in key gateway cities. More than 82% of the properties are freehold, and they have a very balanced income in terms of master lease and measurement contract. With this inclusion, the combined portfolio of Ascenders and Asker Reed. We are building a bigger hospitality portfolio. We will now have 88 properties in our portfolio. Food truly diversified, 16,000 units, 15 countries and 39 cities.

[00:09:40] We will grow our revenue and gross profit by more than 30%.

[00:09:48] Next, I will take you through this combined portfolio. What does it mean for our unit holders from clockwise? We'll strengthen our presence in Asia pack. We'll increase our presence in Asia pack by 11% to 71%. We will also increase our freehold component by 8% to 61%. We'll reduce our concentration risk less than 20% per country in terms of exposure. And most importantly, we will continue to have a balanced income from the Master Lease and Management Contract. So you can see the combined portfolio and hands of our diversification and continue to deliver stable returns to our unit holders.

[00:10:38] As you can see, through the combination, we have increased our presence in Asia Pack and we're very excited because Asia PAC is the fastest economic growth region in terms of GDP, in terms of consumer spending, in terms of tourism, and this is underpinned by the rising middle income. And what does this mean to the REIT? Through the enhanced portfolio, we are then well positioned to capture the rising fastest hospitality growth in this region. And last but not least, I'm sure our unit holders are very pleased that this deal is DPU-accretive to our unit holders and NAV-neutral.

[00:11:32] I will now hand the time to Jay, the CEO of Sanders Hospitality Trust, to take you through the benefits from AHG. Thank you, Biki. Before I start, good morning, ladies and gentlemen. I'd just like to acknowledge your presence for taking time to come here on the last minute to attend this marriage of two A company, a Sanders Hospitality Trust and Escort Re. So two A come together can only give you triple A. So with that quick introduction, I'd like to take you through the slides. Okay, regarding the combination of the two company as some of my colleagues Miss Bay has explained, we will naturally come to a conclusion

## AHT Perspective & Scheme Consideration

[00:12:15] that this can only be good for unit holders, giving the end result being the largest hospitality trust in Asia pack. Now this is true a scheme trust arrangement. The ART will buy 100% of the shares of each trust. And this is an offer price that was articulated at $1.30 with a breakdown of 5% cash and the rest in units in the new combined entity, the new escort read. Next. The scheme consideration that was affected through the negotiation basically would comprise, like I mentioned, the cache component will be 0.0543

[00:13:04] and then the units for every single unit of AH trust, you'll get 0.7942 of the new escort read. Now, this combination is definitely interesting for unit holders because this is a DPU-accretive on the pro-forma basis. At the same time, the unit holders will continue to enjoy the income distribution until the completion of transaction. Next. Now, what does that mean to the shareholders of both entities? Effectively, when we come together, we will form the largest hospitality trust in Asia Bank and from the standpoint of number of assets, we are quite large at 88 number of properties

[00:13:53] spanning across 15 countries. And from the diversification standpoint, you will see from the pie chart here, post-transsection the combination business will allow unit holders and investors to enjoy take out in developed countries at the same time emerging market where the growth is. Number two, in terms of the land tenure, you will see that the majority of the hotels will be sitting on the freehold basis. And in terms of the diversification of the income stream, it will be very balanced. fixed income coming from the master leases and also the variable income coming from the management contract as you can see on the right hand side of

[00:14:37] the pie chart. So this is a good diversification stable with growth. Next. I'd like to take you through some of the key benefits next page. There are five key benefits that I'd like to share with you moving forward post transaction. One Clearly, the unit holders of AH trust would be able to unlock the value was created for them. Number two, the enlarged entity, which we will explain to enhance the resilience of the portfolio for unit holders. And number three, the participation in the proxy hospitality trust in Asia pack. And fourth, the increased flexibility and ability to drive as a result of enlarged entity.

[00:15:26] And lastly, benefit from the sponsor, Escort, being the owner-operator platform across the region. I'll take you through the details of the five benefits. Next page. From the unit holder perspective, this acquisition of shares can only create value for them. They can unlock the 5% cash and you can see the offer price is a premium to NAV at least 7%. We work close to about 28% on a 12 month basis and if you were to compare on the IPO back seven years ago it's about 24% premium. So clearly this is very, very effective for unit holders of AH Trust. Next page. The offer price will also imply

[00:16:12] if you look at the historical chart it's above the historical high. So this is beneficial for the unit holders of AH Trust. Next page. This transaction clearly is a DPU equity close to about 1.8 percent on the proforma basis. At the same time, it is NAV neutral on the proforma basis. So there's no dilution in terms of creation of value to unit holders and the unit holders will continue to enjoy the upside if they stay on with the new shares in the new combined entity. which second benefits is the enlarged portfolio which I believe that will create

[00:17:00] more resilience for the end up. Why? If you look at this pie chart, the Sanders Hospitality Trust, AH Trust in short, bring four markets, 100% develop presence combining with ART will give you exposure in developed market with a small percentage gross about 18% emerging market where the growth is and this diversification will allow unit holders to enjoy no single market exposure more than 20% at the same time no single property that will have an exposure more than 7% of the portfolio and this is important.

[00:17:46] The balance developed market and the emerging market will give you both stability and at the same time upside. Next page. The diversification of this portfolio will also enhance resilience on two front. One would be the financial side of things. As you can see AH Trust today from the top line perspective we are doing about $190 million post transaction. This will increase at the revenue up to close to about 700 and at the MPI level we are doing about 85 and you can only go up close to about 300 over million so this is good and large sized clearly will enhance the resilience of a nut what is more important

[00:18:29] is that this portfolio comes with long stay and short stay. ART most of the hotels are service department it means they do weekly, monthly and yearly contracts, unlike the hotel on the daily rates. If this combination of business, you will see that this balance of portfolio will bring and enhance the resilience of enough for unit holders. Next page. The third benefit that was articulated, the end result of this combination of business clearly will put us in a spotlight where we potentially could be included into the index stock. If you want to invest in the hospitality stock, This is a stock that you have to watch out for post transaction.

## Combined Portfolio Profile & Approvals Timeline

[00:19:16] Clearly we are far ahead against our peer in the S3 in the hospitality segment. The next higher will be at least we are about 2.5 times to the next higher hospitality rate that is CDL. Next. The market cap where A-H Trust is trading today, we are slightly above a billion. post transaction, we should be heading towards a 4 billion. So clearly at the larger cap stock, you will create more liquidity, right? If you have more liquidity, we hope that the cost of capital will be lower and this will facilitate the index stock inclusion. At the same time, we will attract more analysts, more investor base,

[00:20:01] and clearly we hope in the days to come, the new stock of Escort would be rerated. Next. The fourth benefit, the combination business will allow us to enjoy more hit room. At present, AH Trust is doing close to about 400 hit rooms in terms of that ability to do things, but post the transaction will be a billion. Clearly, for larger capacity, we should be able to grow more aggressively and we should be able to do things like development projects, conversion projects. So clearly this will allow the new combination business to grow and to even expand further where they are next.

[00:20:55] The last benefit, the fifth benefit would be for us to enjoy from the sponsor which is an owner operator that has brand across the world. And this is important because there will be new pipeline that we can enjoy from the rover. At the same time, the combined entity will be only the platform for capital land to scale up next. Okay, lastly, I will just touch on next slide. What are the approval needed for this transaction? There are only two things from AH trust perspective. One would be to go to EGM to ask for approval from unit holders, each the sponsor can participate to amend the trusted and to

[00:21:42] amend the to facilitate the implementation of the scheme. And secondly, the next approval is to implement the scheme that has been put on the table. The sponsor will have to abstain from this and for this particular resolution 75% votes is required and a 50 plus 1 majority present in voting. And like I say the sponsor will abstain from this particular resolution. Before I hand over to Seul Kim to finish, I will come back later to wrap up. It's definitely a win-win transaction from the ART perspective and also from the AHT perspective and just very quickly we'll wrap up this

[00:22:28] presentation. I'm sure you all have questions for us. Very quickly in terms from ART perspective, what we are looking for from our unit holders is to approve the following resolution. Item 1 and 2 is largely administrative in nature in terms of creating the stapling did. Item 3 and 4 to seek our unit holders' approval for this acquisition and also issue new units in relation to this transaction. In terms of timeline, I think the key timeline is really the EGM. We are expecting to have our EGM October where we seek our unit holders' approval on this transaction. and we will target the completion of the combination

[00:23:14] by end of the year. Very quickly, I'll wrap up. In terms of conclusion, we kept all the transaction benefits very clear in these slides. I'm sure you agree with us. What are the key benefits and how you benefit our unit holders? Then more importantly, I'd like to emphasize this point about a NAF to NAF transaction for both unit holders. You represent a fair deal for both unit holders and also arising from this combination, our unit holders will be able to reap the benefits. So if you are watching this webcast right now and you are a unit holder, thank you very much for your support and look forward to your continued support for Escort Read and to vote

[00:24:02] in favour of this transaction so that you can reap the benefit of this proposed combination. So, media analyst, thank you also. Hand over to Jay to kind of wrap up his slide and then we'll do the Q&A. Thank you, Suki. Okay, just to recap on this transaction, clearly there are a few key things that you want to take away from this briefing. Number one will be the largest in Asia, but in terms of the hospitality segment, and that's important. Number two, there'll be additional heat room created out of this for AHT-stapered security holders. Number four, the offer price does present a premium

[00:24:48] 28% over the trauma view work, and that's really attractive. And lastly, in terms of DPU accretion, this is about 1.8%. So we have greater value for the stapered security holders of AHT trust, and that's very good. And the five benefits that I've just articulated will be given to the unit holders if you continue to participate in the combined entity. With that, I thank you and we're happy to take Q&A. Thanks, Jay, and thanks to Seokim. Hi, everyone, my name is Weiling. I'm the VP of the Investor Relations and Asset Management of Eskert-Wied. Yeah, so, okay, the panel is there. So let me just introduce to the right of Seokim,

## Analyst Q&A Session

[00:25:35] that is Ms. Kang Su-Fong, the CFO of Eskert-Wied, To the left of Mr. Jue, that is Miss Wong Yan Yan. She's the CFO of the Ascenders Hospitality Trust. Dear everyone, if you do have a question, please do raise your hand and our colleagues will pass you the mic. Okay, please do state your name, where you are from, and which question that you want to pose to any of the audience here, oh sorry, any of the panel there. Please speak into the mic so that our participants from the webcast can hear your questions. Participants from the webcast, you can also ask questions by clicking on the Ask a Question button

[00:26:13] that is found on the right-hand side, bottom page of the page link that you will have. First question, yes, Mervin. Hi, I'm Mervin from DBS. Maybe starting off with a question to Sue Kim. I guess the market is expecting this to happen, but not so soon, so must get menu for your decisiveness and getting it done. But maybe I can start with a cheeky question. My question is why now? In particular, the sentence hospitality, 40 to 50% earnings coming from Australia. We know Sydney and Melbourne is facing some supply pressures over the next few years. Economy is softening, Aussie dollar may remain weak or the further depreciate.

[00:26:56] That's what I think your thought process on increasing your exposure to Australia at this point in time. Thanks, Mervin. To answer your first question, why now? Then I'll say, why not? We're very excited. This is definitely the right time for us to do this combination. Portfolio of Sanders Hospitality Trust comprise of not just Australia portfolio, it also have a very strong group quality assets in Singapore, in Japan, and in Korea. So with this portfolio, it actually enhances the portfolio diversification for escort wheat. And if you look at the performance of the Australia

[00:27:42] portfolio, well, there is a short term immediate impact. But if you look at the longer term and where the properties are located in Australia, Sydney, Melbourne, and Brisbane, this are where in the longer, medium, and longer term, there will be continuous repair growth in this city. So given where the location of this asset are, this immediate short-term impact will not affect the transaction. We have to look at it from the longer term perspective. I think this acquisition will enhance the portfolio of escurries. Can I try to help my colleague? Hello, can you hear me? I think from the perspective of Australia, if we look at the inbound coming from China, it's very, very small.

[00:28:33] is slightly above a million. Compare what you see in Japan and Korea. So clearly the upside for Australia as a destination is there. Sydney being the the business commercial destination will be clearly continue to enjoy the benefits of business travelers and Melbourne being the city where a lot of events are taking place both the sports, musical and cultural will continue to be the destination. So I think long term these two cities will continue to look interesting and Brisbane as a city if you if you track the Queensland government has been putting a lot of investment to create that vibe and the attractiveness as a destination

[00:29:15] the new IR and also the live Concept place that is very near to our hotel Clearly in the days to come you'll see a lot of people coming to Brisbane It is now, I think, it may not be that strong, but clearly in the years to come, Brisbane is a city that you need to watch out for. Thank you. Thank you. David from Daiwa. One question and a follow-up. The first question is, after the merger, what is your growth strategy? Are there low-hang fruit from the AHT assets? Are there value-added

[00:30:00] opportunities to rebrand into Ask God Brands. So that's the first question. And the follow up is, from now until December, is this business as usual or will you continue to pursue acquisitions and are there incentives to pursue acquisitions before the merger? David, yep, okay. So on the Ascenders Hospitality Trust portfolio, currently is of course encumbered. There are management contracts master leases in this portfolio. If you look at Australia portfolio, the master lease will, the measurement contract will expire in the next three years. I think this gives us opportunity

[00:30:48] to look at how we can enhance the value of these assets. The location of these assets are in city centre, very very good location. The opportunities for us to do enhancements, we always look at it on a portfolio basis and how we can improve returns to our unit holders to activities like asset management, asset enhancements or capital recycling. The next question is whether it's business as usual. Yes, there is business as usual. Of course, under the scheme agreement, there are of course certain activities that we need to be confined to prior to the completion, but largely it's business as usual.

[00:31:35] You came from CLSA. My question is to Sue Kim, who still looks very fresh despite not sleeping. Three questions from me. First is on gearing. You mentioned that you become a business trust. So will it still be subjected to the 45% gearing limit? Second question is on synergies. I know it's a bit sensitive, but can we expect some kind of cost synergies with the merger? Lastly, on management fee structures, is there a similarity in terms of management fee structures and which one should we be looking at? Thank you very much for your question. First on the gearing, so technically business trials do not have gearing limit, but as being

[00:32:24] a state-perg unit, we will continue to ascribe to the MAS gearing limit in terms of 45%. In terms of synergies, I think we are combining two very strong portfolio and also arising from this combination, we are also combining the very strong management team or the measurement team, the proven track record together to grow the read together. In terms of synergies, I think it will be experienced at the measurement level, but at the portfolio level you can see that arising from the combination, Ascenders Hospitality Trust who previously doesn't have owner operator sponsor will now be able to enjoy this benefits arising from having a sponsor

[00:33:13] that has their lodging management capabilities. Management fee structure management fee structure are largely similar so the new combined entity will adopt a rich structure, the management fee structure of ART. Vijay from RHP, just a two questions, is there an acquisition fee charged on this transaction and how much is the acquisition fee for this transaction and how will it be paid? And on the management structure post the transaction,

[00:33:58] what would be the management structure of Ascot Street, meaning will all Ascenta hospitality trust people be absorbed under Ascot Street as a part of the transaction and how will the structure be? There will be acquisition fee charged on the transaction. In accordance with the trust deed, we are allowed to charge 1% of the enterprise value. But because out of Grille, the sponsor have weighed 50% of the fees. And so only 50% of fees will be charged on this transaction. In terms of management structure, the two management team will be combined.

[00:34:44] As in this hospitality trust management team, will you either join the LRT measurement team or the sponsor team? And the purpose is really to combine the two teams to continue to grow the wheat. Jonathan from UOB. So just one question. The new mandate says that the combined company will focus on service residents and other hospitality asset. But you know, service resident is a very unique asset, very differentiated. And so my question is whether that focus on a very unique asset, which is service resident, continue for the combined company.

[00:35:32] Certainly in terms of scale, in terms of effectiveness as a company, one other thing that the combined company should focus on service resident. So I just want to understand if over time that focus on work continue, and I believe there will be cost synergy to sort of convert all assets into service residents. Thank you. Just want to clarify your point on the mandate. Actually, we did not change our mandate. So the Escort Residence Trust mandate has always been service residents, rental housing and hospitality asset. So there's no change in mandate. And if you look at the ascenders, you look at the ARRT portfolio now, actually, we have a wide

[00:36:15] spectrum of the properties that are catered towards the service residents long stay, short stay. We have also properties that rental housing and limited service were skated towards a short stay. So we are not limited in terms of just the service residence properties. Going forward, I think every acquisition will be a case by case basis. If you look at our acquisition criteria, it's always you were creative. We look at the micro and micro indicators of each of the countries before we decide on an acquisition. Brandon? Hi, morning, I'm Brandon from Citi. Just a couple of questions, I think a bit directed more at the Capital line as well because I

[00:37:02] realize Chiquin and Andrew are here. I think basically Capital line hasn't been really been doing much pure leisure hotel services that Raffles holding say. So does this transaction mean that the group as a whole, including Ascot-Reed, will be looking a bit more at hotels going forward and if so what kind of synergies does it bring to both shareholders of Capital Land and unit holders of Ascot Re? Yeah, that's my first question. The second question is does this transaction change your stance on the US multi-family portfiller that was bought by Capital Land late last year? Maybe Kevin will take the question first. Maybe I'll take the first question on the hotels.

[00:37:50] I think as a sponsor, we are very positive on the overall travel demand, whether it's leisure or corporate. I think Sukhim has put up the point to say that, you know, about two-thirds of the world's middle class are gonna be in this part of the world in Asia-Pacific. We see very robust growth in GDPs. We see very robust growth in our travel demand. So in order to extend, or to capture this demand, We're actually looking at various aspects of accommodation. I mean, you look at service apartment, the underlying building blocks are fairly similar. There are rooms, you know, whether it's housekeeping or there's security or there's front office,

[00:38:28] these are all common blocks that we have to service, whether it's a service apartment or a hotel. So in effect, we have actually launched a new brand called the Citizens Connect, which is a limited service hotel brand. And that widens our product offering, allows us to grow and scale a lot better going forward. So yes, we'll be looking at more products, but it may not be full service products where you have a very high component of mines and F&B. We're just focused on what we're good at is really selling rooms and making sure that we are able to make a good margin on the products that we're offering.

[00:39:07] Question on multifamily. Chikun, you are gonna take the question on multifamily. The US multifamily portfolio is being, I mean, we bought it last year. going through as enhancement the numbers are better than what we had anticipated. I mean we're still looking at the various options to secure. That's not something that's immediate and urgent at this point in time. Yeah, I mean the important thing is to make sure that we deliver the as enhancement plans. Thanks. Do we have any more questions regarding the transaction? Still not the US portfolio enhancement. Can you remind us when will it and when

[00:40:09] When I look at our exposure in Asia pack, it seems to have increased a lot and previously you have been very diversified. So when can we expect the Asia pack percentage to fall progressively down? So your question on the asset enhancement is for the multi-family portfolio. Oh, but maybe this is not a very relevant question at this point in time. Could we maybe just focus questions on this particular deal that we have? It's a very exciting mergers that we have. So in terms of increase in present Asia pack, I think with the combination we have increased our present Asia pack is 71%. I've clearly demonstrated to you why we're excited about this increase.

[00:40:52] I think it's the Asia pack being the fastest growing in terms of GDP growth, economic growth, leisure, business travelling. This will all drive demand in terms of the accommodation space. So we are happy with the current portfolio allocation and we'll continue to drive the performance of these properties through asset management. But bearing in mind also of course we remain diversified. We still have a global mandate. We are still diversified where each country is not more than 20% those are portfolio allocation. Okay, seems like there's not much questions. So our presentation has been very clear, I take it. If that's the case maybe we'll get Sukeem

[00:41:37] to give a closing speech. Okay, so thank you all again once again for attending this briefing. I know you're all very excited with this transaction, so are we. As you can see, this proposed combination is a win-win for both unit holders. It's a price at left to left, and it's fair for both unit holders. More importantly, the unit holders will be able to participate in the benefits arising from this combination. Escort Ridge has been listed for more than 12 years now, and we have proven track record. Since IPO to now we have generated more than 300% in total shareholders return to our unit holders. We will continue to do that for our unit holders

## Closing Remarks & Adjournment

[00:42:21] for post combination. And with this proposed combination, we'll be bigger, stronger to deliver returns to our unit holders. So thank you very much for continue to support Escalade. Thanks.