AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 43 Existing Use College Building GFA (sq. ft.) 92,157 sq ft NLA (sq. ft.) 87,178 sq ft Number of Car Park Bays 131 Market Value RM30,000,000 Occupancy Rate 100% Operational Review F & B Non-Restaurant Malaysian College of Hospitality & Management The table below sets out a summary on MCHM as at 31 December 2018. LEASE EXPIRY The lease for MCHM is for 9 years of which the third rental term will expire on 31 October 2019. Major Asset Enhancement Initiative There will be no major expansion or renovation on the property since the building is still in good condition and there is no requirement from the existing tenant to expand their operation which will necessitate a major asset enhancement initiative. Overview Of Property Malaysian College of Hospitality & Management —formerly known as KFC International College— is a 4-storey building located in Bandar Dato Onn, Johor. The building erected upon the 87,123 sq. ft land comprise of 4-storey administrative cum academic block, 2 guard houses, bin centre and a pump room. The slightly curved in shaped building currently accommodating two tenants namely KPJ Education (M) Sdn Bhd and KPJ Healthcare University College Sdn Bhd. Strategically located, this area is easily accessible from several directions from the city and the neighbourhood. The area also is an important growth corridor with several major residential, commercial and industrial developments in the vicinity that still being developed in phases.