(Unless stated otherwise, abbreviations and definitions used throughout this announcement shall be the same as the circular to the shareholders of the Company in relation to the Proposed Repayment dated 15 June 2020 (“Circular”))

We refer to the following:-

(i) The announcements made by the Company on the following dates:-

    (a) 30 January 2020; and

    (b) 5 February 2020; and

    (c) 22 April 2020; and

    (d) 8 May 2020; and

    (e) 18 May 2020; and

    (f) 3 June 2020; and

   (g) 12 June 2020; and

   (h) 30 June 2020; and

   (i) 6 August 2020; and

(ii) The Circular dated 15 June 2020.

On behalf of the Company, KAF IB wishes to announce that the Property Valuer had, vide its valuation letters dated 17 December 2020 (“Valuation Letters”), provided updates on the market values of the Property Assets as at 30 September 2020 (“Updated Valuation”) pursuant to the terms of the Repayment Agreements.

The details of the Updated Valuation are as stated in the table below.

Notes:-

(1) The market values of the Property Assets as at 30 September 2020 are the same as the market values of the Property Assets as stated in the Valuation Reports dated 24 January 2020 and the Circular dated 15 June 2020.

(2)     The cost approach was adopted as the primary method of valuation.  The income approach by way of investment method was adopted as a countercheck on the result derived from the cost approach.  Cost approach is defined as the aggregate amount of the value of the land component and the gross replacement cost of the buildings and other site improvements, allowing for depreciation.  The land component is arrived at using the comparison approach whereby comparison is made of the property asset under valuation with sales of other similar property assets.  Where dissimilarities exist, adjustments are made.  Income approach by way of investment method is the capitalisation of net rent from a property asset.  Net rent is the residue of gross annual rent less annual expenses (outgoings) required to sustain the rent with allowance for void and management fees.

Copies of the Valuation Letters will be made available for inspection at the registered office of the Company at Lot 712, Block 7, Demak Laut Industrial Park, 93050 Kuching, Sarawak, during normal business hours from Monday to Friday (except public holidays) for a period of three months from the date of this announcement.

This announcement is dated 17 December 2020.