AL-SALAM REIT ANNUAL REPORT 2019

42 ANNUAL REPORT 2019 Non-F&B Restaurant Malaysian College of Hospitality & Management OPERATIONAL REVIEW OVERVIEW OF PROPERTY The property is a 4-storey building known as Malaysian College of Hospitality & Management (MCHM) — formerly known as KFCH International College — located in Bandar Dato’ Onn, a residential township located 12 km from Johor Bahru. The 597-hectare (1,474 acre) township of Bandar Dato’ Onn will be self-contained township and home to more than 90,000 residents when completed. LEASE EXPIRY MCHM is currently rented by two tenants. The tenancies for MCHM are for a term of 3 years subject to compulsory renewal for further 2 terms of 3 years each term. The current first term will expire on 31 October 2022. 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. The table below sets out a summary on MCHM as at 31 December 2019 Existing Use College Building GFA (sq ft) 92,157 NLA (sq ft) 87,178 Number of Car Park Bays 131 bays Market Value RM30 million Number of Tenancies 2 Occupancy Rate 100% AL-SALĀM REIT •