ARA ASSET MANAGEMENT LIMITED A - listed companyara.listedcompany.com/misc/ar/ar2011.pdf · ARA ASSET MANAGEMENT LIMITED A n n uAl R ep oRt 2 01 1 ... ARA Asset Management Limited

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A R A A S SE T M A N AG EMEN T LIMIT ED

A n n u A l R e p o R t 2 0 1 1

www.ara-asia.com

Singapore

6 temasek Boulevard#16-02, Suntec tower Four Singapore 038986tel: 65 6835 9232Fax: 65 6835 9672

Hong Kong unit 5508 - 10, 55th Floor, the Center99 Queen’s Road CentralHong Kongtel: 852 2169 0928Fax: 852 2169 0968

MalaySia penthouse, Menara AmFirstno. 1, Jalan 19/3 46300 petaling Jaya Selangor Darul ehsan Malaysia tel: 603 7955 8780/5 Fax: 603 7955 8360

ARA ASSET MANAGEMENT LIMITED

SHangHai

unit 2601 - 260226th Floor, Azia Center1233 lujiazui Ring Road, pudongShanghai 200120Chinatel: 8621 6859 1088 Fax: 8621 6859 1290

International Capital plaza 1318 Sichuan north Road Shanghai 200080 China tel: 8621 6307 9000 Fax: 8621 6307 9050

Beijing

unit 1901, l19, tower e2the towers, oriental plazano 1, east Chang An AvenueDong Cheng DistrictBeijing 100738Chinatel: 8610 8520 0187Fax: 8610 8520 0177

guangzHou

161 linhexi Road Block B46/F tianhe DistrictGuangzhou 510620China tel: 8620 3831 0876Fax: 8620 3825 1658

Dalian

no. 139-1Xi’an RoadShahekou DistrictDalian 116021Chinatel: 86411 8389 8255

nanjing

50-A, nanjing International Finance Center1 Hanzhong RoadBaixia Districtnanjing 210029Chinatel: 8625 8477 5566Fax: 8625 8477 5567

Tianjin

unit 201, Block 8ChaoYang liHou pu ChunDa Huang pu XiangtianjinChina

10 YEARS oF ACHIEVEMENTS十年辛勤筑辉煌

CONTENTS

Corporate Profile

Our Core Values

Celebrating 10 Years of Achievements

Letter to Shareholders

Year in Review

Highlights of the Year

Financial Highlights

Performance Review

Our Business

Business Segments

Funds and Services

Real Estate Investment Trusts

Private Real Estate Funds

Real Estate Management Services

Corporate Finance Advisory Services

Our People

Board of Directors

Management Team Structure

Management Team

Investor Relations and Awards

Corporate Information

Report on Corporate Governance

Financial Statements

Supplementary Information

Shareholders’ Information

Notice of Annual General Meeting

Notice of Books Closure

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ANNUAL REPORT 2011 1

CORPORATE PROFILEARA Asset Management Limited (“ARA” or the “Company” and together with its subsidiaries , the “Group”) is an Asian real estate fund management company focused on the management of public– listed real estate investment trusts (“REITs”) and private real estate funds. ARA was incorporated on 1 July 2002 and was admitted to the official lis t of the Main Board of the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 2 November 2007.

ARA currently manages REITs lis ted in Singapore, Hong Kong and Malaysia with a diversified portfolio spanning the office / retail ( commercial ) , industrial /of fice and logistics sectors ; private real estate funds investing in Asia ; and provides real estate management services , including property management and convention & exhibition services ; and corporate finance advisory services .

ARA is one of the largest real estate fund managers in the region and has total assets under management (“AUM”) of S$20.2 billion (approximately US$15.6 billion) as at 31 December 2011.

ARA ASSET MANAGEMENT L IMITED2

OUR CORE VALUES

INTEGRITY

EXCELLENCE

RESpECT

TEAMWORK


CELEBRATING 10 YEARS OF ACHIEVEMENTS

2002 2003

2004

• EstablishmentofARA • InitialPublicOffering(“IPO”)ofFortuneREITin Singapore – the first cross-border REIT in Asia

• Establishment of the Al-Islami Far Eastern Real Estate Fund (“AIFEREF”) – the first Shariah- compliant fund in Asia

• IPO of Suntec REIT – the first composite REIT in Singapore

ARA was founded ten years ago as a joint venture between our Group CEO, Mr John Lim and Cheung Kong Group. Over the past decade, ARA has grown to become a leading Asian real estate fund manager, with a capable management team at the helm and employs over 800 people across 11 cities in the Asia-Pacific region.

On the 10th anniversary of ARA, we have reached a significant milestone in achieving over S$20 billion of AUM as at 31 December 2011. We will continue to pursue our vision of becoming the premier integrated real estate fund manager in Asia.


2005

2006

2007

2010

2011

• IPOof ProsperityREIT– thefirstprivate sector REIT in Hong Kong

• IPO of AmFIRST REIT – one of the largest commercial REITs in Malaysia

• Establishment of ARA Corporate Finance Advisory Services

• IPO of ARA Asset Management Limited – the first real estate fund manager listed in Singapore

• First closing of the ARA Asia Dragon Fund – ARA’s flagship private real estate fund with committed capital of US$716 million

• AIFEREFdivestedwithaninternalrateofreturn (“IRR”)(unlevered)of23.7%

• Dual primary listing of Fortune REIT in Hong Kong

• IPO of Cache Logistics Trust (“Cache”) – the first REIT IPO in Singapore since the global financial crisis

• Acquired strategic stake in APN Property Group Limited, a listed Australian boutique real estate fund manager

• ARA’s revenue crosses the S$100 million mark

• ARA’s market capitalisation crosses the S$1 billion mark for the first time

• ARA was accorded Forbes Asia’s “200 Best UnderaBillion”

• IPO of Hui Xian REIT – the first offshore RMB-denominated public equity offering listed in Hong Kong and the first RMB-denominated REIT in the world

• The ARA Harmony Fund achieves an IRR of 64.8%forinvestors

• TheARAAsiaDragonFundIIwasestablishedand achieved its first closing of US$300 million

• ARA was accorded Forbes Asia’s “200 Best UnderaBillion”forthesecondyearrunning

2008

• FinalclosingoftheARAAsiaDragonFundwith totalcommittedcapitalofUS$1.1billion

2009

• Establishment of the ARA Harmony Fund – a single asset private real estate fund invested in the Suntec Singapore International Convention & Exhibition Centre

• EstablishmentofSuntecSingapore–aconvention & exhibition services provider

• AcquisitionofAPMPropertyManagementPte. Ltd.–thepropertymanagerofSuntecCity

celebrating 10 years of achievements


LETTER TO SHAREHOLDERS




For the financial year ended 31 December 2011 (“FY2011”), the Group posted a record net profit of S$68.2 million, a 7% jump from the S$63.8 million achieved in the previous year. Earnings per share(1) were 8.9 cents (FY2010 – 8.3 cents).


letter to shareholders

Becoming the premier Integrated Real Estate Fund Manager in Asia

ARA celebrates its 10th anniversary this year and we are very pleased to be on track to realise our objective of becoming the

premierintegratedrealestatefundmanagerinAsia.Overthedecade,wehaveexpandedourportfolioandnowmanage

sixREITsinthreejurisdictions,aswellasthreeprivaterealestatefundsthatinvestintheAsianregion.Asat31December

2011,ARAhasaccumulatedassetsundermanagement(“AUM”)ofS$20.2billion,animpressivecompoundedannualgrowth

rateof56%from2002.Today,ARAmanagesover35millionsquarefeetofrealestatespaceacrossAsiathroughREITsand

privaterealestatefundsplatforms,makingARAoneofthelargestrealestatefundmanagersintheregion.Withmultiple

platforms and an excellent track record, ARA is well positioned to ride on the Asian growth story to continue growing its

AUMandextendingitspresenceintheregion.

Dividend

TheDirectorsarepleased toproposeafinaldividendof2.7Singaporecentsper share forFY2011. Including the interim

dividendof2.3Singaporecentspersharepaidouton8September2011, thetotaldividendforFY2011amounts to5.0

Singaporecentspershare.Withtheone-for-tenbonusissueinJune2011,theproposeddividendpayoutinFY2011represents

aneffective15%increasefromFY2010.Theproposedfinaldividendissubjecttoshareholders’approvalattheCompany’s

AnnualGeneralMeetingtobeheldon26April2012.

Delivering results amid an uncertain environment

FY2011 started off with uncertainty as the slow recovery of the US was weighed down by unresolved and expanding

sovereign debt issues in Europe. There were also fears that Asian economies might overheat due to accommodative

monetarypolicies.

As the year continued, a slow but discernable pattern emerged – the US and the weaker European Union countries continued

tobestymiedbyeconomicslowdownandthepersistentsovereigndebtcrisis.ThedevastatingcatastropheinJapan,political

upheavals in the Middle East and floods in Thailand exacerbated the economic uncertainties and Asian economies experienced

slowergrowthandrisinginflation.

Amid this uncertain environment, ARA continues to deliver consistent earnings based on strong fundamentals and this has

positionedARAto rideout thevolatilityof themarketandmaintainsustainable results. InFY2011,our revenue jumped

9%toS$122.8millionandournetprofit increasedtoS$68.2million,an increaseof7%year-on-year.Theoutstanding

performancewasduemainlytoourtwingrowthdriversofREITmanagementandprivaterealestatefundsplatforms.

ARAwascommendedforitsachievementsinbranding,strongcorporategovernancepoliciesandinternalcontrolsinFY2011.

Affirmingourstrongperformance,ARAwasincludedinAsia’s“200BestUnderaBillion”listinSeptember2011’sedition

ofForbesAsiaMagazineforthesecondyearrunning.ARAwastheonlyoneofeightSingaporecompaniesinthe2010list

tobeawardedin2011.ARAhasalsobeenrecognisedasaBusinessSuperbrandsinSingapore,astrongtestamenttoARA’s

excellentbrandingandrecognition locallyandabroad.At the Investors’ChoiceAwards2011organisedby theSecurities

InvestorsAssociation(Singapore),ARAreceivedtheinaugural“InternalAuditExcellenceAward”(Merit,OverallCategory).

Wevaluetherecognitionaccordedbyindustrypeersforourstrengthindeliveringconsistentperformancethroughbusiness

cycles.Wecontinuetooutperformthemarketatlargeandourmajorrevenuelinesincludingmanagementfees,acquisition

andperformancefeespostedrecordresults.

(1) Based on enlarged share capital of 768,319,189 shares



REIT Management

ARAhadanotherbusybanneryearintermsofREITmanagement,withthelistingofHuiXianREITinHongKong.OurREITs

werealsoactiveontheacquisitionfront,makingseveralacquisitionsduringtheyear.

In April 2011, ARA, together with our joint venture partners Cheung Kong Group and CITIC Securities Group, jointly listed

HuiXianREITontheStockExchangeofHongKong.AsthefirstRMB-denominatedREITlistedinHongKong,HuiXianREIT

waslistedwithBeijingOrientalPlaza,oneofthelargestandmosticoniccommercialcomplexesinChina.HuiXianREIThas

sinceannouncedtheacquisitionoftheSheratonShenyangLidoHotelinShenyang,oneofthelargestinternationalfive-star

hotelsinNorth-easternChinainNovember2011.

InAugust2011,SuntecREITacquiredmajoritycontrolofSuntecSingapore,apremierconventionandexhibitioncentrewhich

is integratedwiththe iconicSuntecCity.Asaresult,SuntecREIT’seffective interest inSuntecSingapore increasedfrom

20.0%to60.8%.InOctober2011,SuntecREITannouncedthedivestmentofChijmesata23%premiumovervaluation

and the S$410 million remaking of Suntec City into a more exciting shopping and Meetings, Incentives, Conventions and

Exhibitions(“MICE”)destination.Theassetenhancementinitiative(“AEI”),whichisscheduledtostartinmid-2012,comprises

S$230millionincapitalexpendituretoremakeSuntecCityMallandS$180milliontomoderniseSuntecSingapore.When

completedinmid-2015,SuntecCitywillofferalmost1millionsquarefeetofshoppingexperience.

InDecember2011,FortuneREITannouncedtheacquisitionofTheBelvedereGardenPropertyandTheProvidentCentre

PropertyforatotalpurchaseconsiderationofHK$1,900million.Uponcompletion,theacquisitionofthesetwoproperties

willadd457,100squarefeetor23%ofgrossrentablearea(“GRA”)toFortuneREIT’sportfolio,bringingitstotalportfolio

GRAto2.4millionsquarefeet.

CacheLogisticsTrustmadeitsmaidenacquisitioninSingaporebyacquiringtwologisticsproperties,andmarkeditsforay

intoChinawith the acquisitionof JinshanChemicalWarehouse in Shanghai.Capitalisingon the economicgrowth and

vibrancyofCyberjaya’scommercialofficesegment,AmFIRSTREITmadeitsfirstinvestmentinCyberjayawiththeacquisition

ofPrima9andPrima10propertiesforatotalconsiderationofRM133millioninNovember2011.

The outlook for the Singapore and Hong Kong markets may be uncertain given their relatively open economies, which

aremoreexposedtoexternalfactors.However,wenotethatthefundamentalsinAsia,andinparticularthesetwocities,

remainstrongastheregion’seconomiescontinuetogrow.Lookingahead,wewillcontinuetogrowourREITmanagement

platform,proactivelymanageourassets,undertakeAEIsaswellaslistnewREITsinnewjurisdictions.

private Real Estate Funds

Ourflagshipprivate realestate fund, theARAAsiaDragonFund (“ADF”),completed its investmentperiod in2011and

shifted its focus to assetmanagement anddivestment.Over thenext three years, theADFwill bedivesting its assets,

afterhavingsuccessfullydeployedall itscapital.ARAhasofficially launchedtheARAAsiaDragonFund IIandwasable

toraiseUS$300millionat itsfirstclosingwiththefinalclosingscheduledfor2012.Despitethechallengingfundraising

environment,weareheartenedbythegoodsupportreceivedfrominvestors.

WeareindeedpleasedwiththeperformanceoftheARAHarmonyFundwhichheldamajoritystakeinSuntecSingapore.

InAugust2011,theARAHarmonyFundachievedanoverallinternalrateofreturnof64.8%whentheprivateinvestorsin

thefunddivestedtheirinterests.

Real Estate Management Services

Our real estate management services division continues to deliver steady results as it manages Suntec City in Singapore and

propertiesinMalaysia.Ourrealestatemanagementservicesdivisionplaysacrucialroleinenhancingtheperformanceof

theassetsofourREITsandprivatefundsinthesetwocountries.Therealestatemanagementservicesdivisionwillbenefit


letter to shareholders

fromtheAEIinthelongertermastherejuvenatedSuntecCitywillbeamoreexcitingshoppingandMICEdestination.We

willcontinuetodevelopAPMPropertyManagementPte.Ltd.asapremiumbrandinpropertymanagementinAsia.

Ourexpertise inpropertymanagementwas recognisedwhenSuntecSingaporewon the“Asia’s LeadingMeetingsand

Conference Centre” title at the World Travel Awards for the sixth year, beating strong competition from seven other

establishments across leading Asian cities. We are also proud that Suntec Singapore’s efforts at internationalising its

operations is bearing fruit as Suntec International has been appointed the sales and marketing representative for both

Vancouver Convention Centre as well as Adelaide Convention Centre to spearhead efforts in drawing more meetings and

eventsfromAsiatotherespectivecontinentsofNorthAmericaandAustralia.

prospects

WithconcernsthatgrowthinAsiacouldbeadverselyaffectedbytheslowdownintheUSandEuropeaneconomies,itis

vitalforARAtoproactivelymanagetherisksthatariseandtofocusonmanagingourfundsprudently.

Although the uncertain economic environment poses challenges, it also offers opportunities for ARA to expand our existing

platformsandstrengthenourorganisation.Wehaveandwillalwayskeeptoourcorevaluesofintegrity,excellence,respect

andteamwork.Thesehavebeenourguidingprinciplesinallourdealingswithourstakeholdersandbusinesspartners,and

wewillcontinuetoinculcatethesecorevalueswithintheorganisation.

Acknowledgement

WewouldliketothankourBoardofDirectorsfortheirguidanceinthepastyear,aswellasouremployeesfortheirhard

workincontributingtothesuccessofARAduringourfoundingdecade.ThereisaChinesewisdomthata journeyofa

thousandmilesstartswithafirststep.Wewouldalsoliketothankourinvestorsandbusinesspartnersfortheirsupport,

manyofwhomhavebeenwithussincetenyearsago.Welookforwardtotheirsupportformanydecadestocome.

Chiu KwoK hung Justin Lim hwee Chiang JohnChairman Group Chief Executive Officer


YEAR IN REVIEW



HIGHLIGHTS OF THE YEAR

FEBRUARY

JUNE

MARCH

• Cache acquires 6 Changi North Way and 4 PenjuruLaneforS$39.8million

• AmFIRSTREITcompletes theacqusitionofSYF Unit No. S2.140B 2nd Floor The Summit SubangUSJ

• CacheestablishesaS$500millionmulticurrency medium term note programme

APRIL

MAY

• ARAFY2010AnnualGeneralMeeting

• ListingofHuiXianREITontheStockExchange ofHongKong(“SEHK”)

• 1-for-10bonusissueof69,847,192newordinary sharesofS$0.002each

• CacheacquiresJinshanChemicalWarehousein Shanghai,ChinaforRMB71.0million

• Payment of FY2010 final dividend of S$0.025 per share


HIGHLIGHTS OF THE YEAR

JULY

AUGUST

OCTOBER

NOVEMBER

DECEMBER

• The ADF II secures US$300 million of capital commitments

• Fortune REIT announces new “Fortune Malls” asset branding exercise for 14 malls

• Suntec REIT announces the establishment of a S$500 million multicurrency medium term note programme

• Suntec REIT acquires majority control of Suntec Singapore International Convention & Exhibition Centre

• The ARA Harmony Fund achieves an IRR of 64.8%forinvestors

• Cacheacquires22LoyangLaneforS$13.0million

• SuntecREITissuesS$150million3.1%fixedrate notes due in 2016

SEPTEMBER

• ProsperityREITcompletestheassetenhancement initiative for Trendy Centre

• PaymentofFY2011interimdividendofS$0.023 per share

• ARA named one of Asia’s “200 Best Under a Billion”byForbesAsiaMagazineforthesecond year running

• ARA conferred the inaugural “Internal Audit Excellence Award” by Securities Investors Association(Singapore)(“SIAS”)

• ARA recognised as a “Business Superbrands 2011/2012”bySuperbrands

• SuntecREITannouncesthedivestmentofChijmes for S$177 million

• SuntecREITannouncestheremakingofSuntecCity

• Suntec REIT conferred the “Most Transparent Company Award 2011” Runner-up Award by SIAS

• Hui Xian REIT announces the acquisition of the Sheraton Shenyang Lido Hotel in Shenyang, China for RMB 980 million

• AmFIRSTREITcompletestheaquisitionofPrima 9 & 10 for RM133 million

• FortuneREITannouncestheproposedacquisition of The Belvedere Garden Property and The Provident Centre Property for HK$1,900 million


FINANCIAL HIGHLIGHTS

• Totalrevenuerose9%toS$122.8million

• Netprofitincreased7%toS$68.2million

• ProposedfinaldividendofS$0.027pershare,totalpayoutofS$0.050pershareforFY2011

• TotalAUMup18%toS$20.2billion(approximatelyUS$15.6billion)

(1) Earnings per share – based on the enlarged share capital of 768,319,189 shares in issue as at 31 December 2011

(2) Based on exchange rates as at 31 December 2011(3) Gross property value of REITs managed by subsidiaries & associated companies(4) Gross value of real estate investments in private real estate funds(5) Unutilised commitments in private real estate funds, excluding capital committed for projects pending completion(6) Revenue base for real estate management services fee computation

KEY FINANCIAL RESULTS FY2011 FY2010 Change (%)

Revenue

Management fees S$’000 90,860 84,630 7%

Acquisition and performance fees S$’000 21,288 17,499 22%

Other income S$’000 10,613 10,382 2%

Total revenue S$’000 122,761 112,511 9%

Net profit S$’000 68,202 63,812 7%

EPS(1) S$ cents 8.9 8.3 7%

Dividend S$ cents 5.0 4.8 4%

TOTAL ASSETS UNDER MANAGEMENT(2) 31 Dec 2011 31 Dec 2010 Change

REITs - Real estate(3) (S$ billion) 14.9 11.4 3.4

Private real estate funds - Real estate(4) (S$ billion) 4.9 5.0 (0.1)

Private real estate funds - Capital(5) (S$ billion) 0.2 0.3 (0.1)

Real estate management services(6) (S$ billion) 0.3 0.3 -

Total AUM (s$ billion) 20.2 17.1 3.1


financial highlights

TOTAL REVENUE & NET PROFIT (S$ MILLION)

TOTAL ASSETS UNDER MANAGEMENT (S$ BILLION)

140

120

100

80

60

40

20

0FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011

LEGEND

LEGEND

OTHER INCOME

REAL ESTATE MANAGEMENTSERVICES

ACqUISITION & PERFORMANCE FEES

PRIVATE FUNDS- CAPITAL

25

20

15

10

5

0

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011

0.8

13.4

31.3

13.5

34.0

62.1

70.0

36.7

48.3

86.3

112.5

63.868.2

122.8

27.6

5.7

MANAGEMENT FEES

PRIVATEFUNDS

NET PROFIT

REITs

0.6

3.5

5.56.3

9.6

11.8

13.1

17.1

20.2


PERFORMANCE REVIEW

performance Overview

TheGroupachievedanotherrecordyearofnetprofitofS$68.2millionforthefinancialyearended31December2011,

a7%jumpfromS$63.8millioninFY2010.Totalrevenuerose9%toS$122.8million,backedbyanincreaseinrecurrent

managementfeeincomeastheGroupbenefittedfromthefullyearmanagementfeescontributionfromtheacquisition

ofaone-thirdinterestintheMarinaBayFinancialCentre(“MBFCProperty”)(1) by Suntec REIT on 9 December 2010 and

thelistingofCacheontheSGX-STon12April2010.Duringtheyear,theGroupalsolistedHuiXianREIT,theworld’sfirst

offshore RMB-denominated REIT on the SEHK, and successfully divested investors’ interest in the ARA Harmony Fund with

anexcellentIRRof64.8%.ThesuccessfulexecutionofthesetransactionscontributedsignificantlytotheGroup’snetprofit

forFY2011,aswellascementedtheGroup’sreputationasaleadingAsianrealestatefundmanager.

Assets Under Management

In line with the Group’s sustained growth since its establishment in 2002, the total AUM as at 31 December 2011 increased

by18%toS$20.2billionfromS$17.1billionasat31December2010.REITrealestateassetsundermanagementclimbed

S$3.4billiontoS$14.9billion,primarilyfromthe listingofHuiXianREITontheSEHKandrevaluationgainsforexisting

properties.FortheGroup’sprivaterealestatefunds,therewasaslightfallinAUMastheARAAsiaDragonFund(“ADF”)

commenceditsdivestmentofsomeofitsassetsandreturnedcapitaltoinvestors.

Revenue

Despitethechallengingmacroeconomicenvironment,theGroup’srevenueclimbed9%toS$122.8millioninFY2011from

S$112.5millioninFY2010.Recurrentmanagementfeeincomegrew7%toS$90.9million,primarilyduetothefullyear

managementfeecontributionfromtheMBFCPropertyacquisitionbySuntecREITandthelistingofCache.

Acquisition and performance fees rose to S$21.3 million from S$17.5 million in the previous year. The acquisition and

performance fees received were primarily from the performance fees received in relation to the divestment of investors’

interest in theARAHarmony Fundand the acquisition fees received in relation to the acquisitionof a51% interest in

HarmonyPartnersInvestmentsLimitedbySuntecREIT.InFY2010,theGroupreceivedacquisitionandperformancefeesof

S$17.5millionprimarilyfromSuntecREIT’sacquisitionoftheMBFCProperty.

Expenses

TheGrouprecordedhighertotaloperatingexpensesofS$48.8millioninFY2011comparedtoS$38.6millioninFY2010,

primary due to a net loss on fair valuation (mark-to-market loss) of S$6.1 million on the Suntec REIT acquisition units

received by the Group for the acquisition of MBFC Property last year, as well as management fee income received in

theformofunits.TheacquisitionunitsweresubjecttoaoneyearmoratoriumasstipulatedintheCollectiveInvestment

SchemesissuedbytheMonetaryAuthorityofSingapore.Theincreasewasalsopartlyduetohigherstaff-relatedexpenses

inlinewiththeGroup’scontinuingbusinessexpansion.

FinancecostinFY2011wasreducedsignificantlytoS$0.4millionfromS$0.9millionasasecuredrevolvingcreditfacility

ofRM44.9million(approximatelyS$18.9million)fromAmInvestmentBankBerhad(“AIBB”)wasfullyrepaidinMay2011.

(1) Refers to Marina Bay Financial Centre Tower 1, Marina Bay Financial Centre Tower 2, the Marina Bay Link Mall and 695 car park lots


PERFORMANCE REVIEW

REVENUE BY SEGMENTS

REAL ESTATE ASSETS UNDER MANAGEMENT BY COUNTRY

9%

17%

10%

46%

18%

TOTAL: S$122.8m

LEGEND

REIT MANAGEMENT FEES

PRIVATE FUND MANAGEMENT FEES

REAL ESTATE MANAGEMENT SERVICES

ACqUISITION & PERFORMANCE FEES

OTHER INCOME

5%

26%

47%

22%

TOTAL: S$19.8b

LEGEND

SINGAPORE

HONG KONG

CHINA

MALAYSIA


PERFORMANCE REVIEW

Earnings

TheGroup’sshareofprofitsofassociatestotalledS$2.8millionforFY2011.TheincreaseofS$2.3millionwasprimarilydue

tothecontributionfromtheGroup’s30%effectiveinterestinHuiXianAssetManagementLimited,themanagerofHuiXian

REIT.Taxexpensedeclined27%toS$6.8millioninFY2011fromS$9.3millioninFY2010despitehigheroperatingprofitsas

partoftheincomewasreceivedoffshoreforFY2011.

NetprofitattributabletoequityholdersoftheCompanyinFY2011wasS$68.2million,a7%jumpfromS$63.8millionin

thepreviousyear.Excludingtheeffectsofthemark-to-marketlossoncertainREITunitsamountingtoS$6.1millionandthe

relatedtaxeffects,theGroup’snetprofitwouldhavebeenS$73.3million,15%higherthanthatachievedinFY2010.While

thesharebaseoftheCompanyincreasedfollowingthe1-for-10bonusissueinJune2011,FY2011earningspersharewas

8.9Singaporecents,higherthanthe8.3SingaporecentspershareachievedinFY2010.

Dividends

TheDirectorsarepleasedtoproposeafinaltax-exemptdividendof2.7Singaporecentspershare.Inclusiveoftheinterim

dividendof2.3SingaporecentspersharepaidoutinSeptember2011,thetotaldividendpershareforFY2011amounted

to5.0Singaporecentspershare,higherthanthe4.8SingaporecentsdeclaredforFY2010.Thetotaldividendpaid/payable

forFY2011amountstoS$38.4million,a15%increasefromthepreviousyear,primarilyduetotheenlargedsharebaseof

theCompanyfollowingthebonusissue.

Assets

The Group has an asset-light but human-capital focused business model of generating fee-based income from real estate

fundmanagementandrelatedservices.Asat31December2011,theGroup’stotalassetswasS$214.6million,comprising

S$57.3millionofcashandcashequivalentsaswellasS$121.7millionoffinancialassets.Financialassets,whichinclude

the Group’s strategic stakes in AmFIRST REIT, Suntec REIT, Cache and seed investments in private funds and associated

securities,decreasedby18%primarilyduetothegeneralsofteningoftheglobalequitymarketsandthepartialsaleof

AmFirstREITunitsheldbytheGroup.

Borrowings

TheGrouphasfullyrepaidthesecuredrevolvingcreditfacilityfromAIBBthatwasusedtopartfinancetheacquisitionofa

12.5%interestinAmFIRSTREIT.Asat31December2011,theGrouphadnooutstandingborrowings.

Shareholders’ Equity

InJune2011,theCompanyundertookabonusshareissueofonesharecreditedasfullypaidforeverytenexistingshares

heldinthecapitaloftheCompany.Thisamountedtotheissuanceof69,847,192newordinaryshares,bringingthetotal

numberofsharesoutstandingto768,319,189.TherewerenooutstandingoptionsorconvertiblesecuritiesoftheCompany

asat31December2011.

TheGroup’stotalreserveswasS$187.4millionasat31December2011whiletotalshareholders’equitystoodatS$189.6

million.NettangibleassetspershareontheCompany’senlargedsharebaseasat31December2011wasS$0.25,unchanged

from31December2010.


PERFORMANCE REVIEW

Cash Flows & Liquidity

The Group’s main sources of operating cashflows are fees from the management of REITs and private real estate funds as

wellastheprovisionofrealestatemanagementservices.Thefeesfortheprovisionoftheseservicesaregenerallyreceived

incash,exceptformanagementfeesinrespectofcertainREITs,whicharereceivedincashand/orREITunits.TheGroup’s

practice for REIT units received as part payment of REIT management fees is to realise them into cash as soon as practicable

andoutsideofthecorrespondingblack-outperiodsfortherespectiveREITs.

Additionally, the Group maintains the following facilities:

• anunutilisedsecuredrevolvingcreditfacilityofS$20.0millionwhichbearsinterestatafloatingrateof1.35%p.a.above

the Association of Banks in Singapore Swap Offer Rate;

• anunutilisedsecuredrevolvingcreditfacilityofRM16.0millionwhichbearsinterestatafloatingrateof1.4%p.a.above

the bank’s cost of funds; and

• unutilisedunsecuredoverdraftfacilitiesofS$6.0millionandHK$3.0millionwhichbearinterestattherespectiveSingapore

andHongKongprimelendingrates.

NetcashgeneratedfromoperatingactivitiesinFY2011decreasedtoS$49.4millionfromS$56.1millioninFY2010,primarily

duetoadecrease inproceedsfromthesaleofREITunits.TheproceedsreceivedfromthesaleofREITunits inFY2010

includedREITunitsreceivedasfeesinpriorfinancialperiods.

NetcashinflowsfrominvestingactivitiesamountedtoS$21.6millioninFY2011,comparedwithanetcashoutflowofS$28.3

million intheprecedingyear.Thenetcash inflowfrominvestingactivities inFY2011wasprimarilyduetonetproceeds

received from the partial sale of AmFIRST REIT units in April 2011 and repayment in relation to the Group’s participation in

amezzanineloantotheARAHarmonyFund.ThenetcashoutflowforinvestingactivitiesinFY2010comprisedmainlyof

theacquisitionofastrategicstakeinCacheduringitsIPOinApril2010,astrategicinvestmentinAPNPropertyGroupand

seedcapitalinvestmentintheADFpursuanttocapitalcallsfromthefundinFY2010.

TherewasanincreaseinnetcashoutflowfromfinancingactivitiesofS$56.1millioninFY2011comparedtoS$31.2million

in FY2010, mainly due to the repayment of the RM 44.9 million revolving credit facility from AIBB and an increase in

dividendpaid.Asaresultoftheabove,theGroup’scashpositionincreasedbyS$15.0millionfromS$42.3millionasat31

December2010toS$57.3millionasat31December2011.



OUR BUSINESS


BUSINESS SEGMENTS

Asarealestatefundmanager,ARAisfocusedonthemanagementofpublic-listedREITsandprivaterealestatefunds.These

investmentvehiclesallowARAtoinvestacrossabroadspectrumofrealestateinvestmentclasses.Supportingthemare

ARA’s real estate management services and corporate finance advisory services divisions which provide in-house expertise

inpropertymanagement,convention&exhibitionservicesandcapitalmarkets.Together,ARA’svariousbusinesssegments

constitute an Asia-focused real estate fund manager with extensive expertise and experience across a wide range of real

estateassetclassescomplementedbyasset-specificskill sets.The revenuescontributedby thesebusinesssegmentsare

summarised as follows:

BUSINESSSEGMENTS

REVENUE (PRIMARYBASIS)

Reits

Base Fees(GrossPropertyValue)

Performance/ Variable Fees (NetPropertyIncome)

acquisition/ Divestment Fees (GrossPropertyValue)

Portfolio management Fees (CommittedCapital/ Contributed Capital / Gross PropertyValue)

Performance Fees (IRRabovehurdle)

Return on seed Capital

Portfolio management Fees (PropertyGrossRevenue)

Convention & exhibition service Fees (GrossRevenue)

Consultancy Fees (ProjectValue)

advisory Fees (PurchaseValue)

CoRPoRate FinanCe

aDVisoRy seRViCes

ReaL estate management

seRViCes

PRiVate ReaL estate FunDs


FUNDS AND SERVICES

Reits

Listing Venue

Focus

Property Value (1)

SGX-ST&SEHK

Suburban retail

properties in

Hong Kong

HK$16,388m

SGX-ST

Prime office &

retail properties

in Singapore

S$7,698m

SEHK

Office &

industrial/ office

properties in

Hong Kong

HK$6,991m

Bursa

Commercial

properties in

Malaysia

RM1,157m

SGX-ST

Logistics

properties in the

Asia Pacific region

S$843m

SEHK

Commercial

properties in the

PRC

RMB 33,190m

DIVERSIFIED AND COMPLEMENTARY FUND PLATFORMS AND SERVICES

PRiVate ReaL

estate FunDs

Description

Fund Size

Flagship strategic and

opportunistic private

real estate fund

investing in Singapore,

Hong Kong, China,

Malaysia and other

emerging economies

in Asia

US$1.1b

(CommittedCapital)

2nd strategic and

opportunistic private

real estate fund

investing in Singapore,

Hong Kong, China,

Malaysia and other

emerging economies

in Asia

US$1.0b

(TargetFundSize)

Single-asset private real

estate fund which owns

the Suntec Singapore

International Convention

& Exhibition Centre

S$400m

(GrossAssetValue)

Strategic alliance with

Australian specialist real

estate investment manager,

APN Property Group (2) for

private funds investing

primarily in Australian

real estate

ReaL estate

management

seRViCes

Description Property management services provider Operations, sales and marketing services provider &

consultant for convention, exhibition, meeting and

event facilities

Notes:(1) Property values as per the latest publicly-announced valuation (2) ARA held a 13.9% interest in APN Property Group as at 31 December 2011


REAL ESTATE INVESTMENT TRUSTS

the Reits managed by aRa are regulated investment vehicles that are freely traded on stock exchanges

in the region. they typically have core strategies – focusing on properties within their respective sectors

or geographical locations that offer stable rental income. Distinguishing features of these Reits include a

requirement to pay out nearly all income to investors through regular distributions and limits on debt and

development or operating activities. aRa currently manages six Reits listed in singapore, hong Kong and

malaysia with a combined floor area of 17 million square feet and an aggregate gross property value of s$14.9

billion (approximately us$11.5 billion) as at 31 December 2011.

SUNTEC REIT

1

FIRST COMPOSITE REIT IN SINGAPORE


real estate investment trusts

Listedon9December2004ontheSGX-STandwithaprimaryfocusonprimecommercialpropertyinSingapore,Suntec

REITwasthefirstcompositeREITinSingaporeowningbothofficeandretailproperties.SuntecREITismanagedbyARA

TrustManagement(Suntec)Limited,awholly-ownedsubsidiaryoftheCompany,andcurrentlyownsaportfolioofoffice

andretailpropertieswithatotalnetlettableareaofapproximately3.5millionsquarefeet.

* Includes Suntec REIT’s 60.8% effective interest in the retail net lettable area in the Suntec Singapore International Convention & Exhibition Centre** Excludes the permissible gross lettable area of 65,454 square feet from the acquired land along Penang Road*** Disposed on 20 January 2012

2

4

3

5

PROPERTY LOCATION NET LETTABLE AREA (Square Feet)

1 Suntec City Marina Bay 2,129,804*

2 Park Mall Orchard 269,959**

3 CHIJMES *** City Hall 79,794

4 One Raffles Quay Marina Bay 445,120 (one-third interest)

5 The MBFC Property Marina Bay 581,653 (one-third interest)

Total 3,506,330



Listedon12August2003ontheSGX-STandwithadualprimarylistingontheSEHKon20April2010,FortuneREITwas

Asia’sfirstcross-borderREITandalsothefirstREITtoholdassetsinHongKong.FortuneREITismanagedbyARAAsset

Management(Fortune)Limited,awholly-ownedsubsidiaryoftheCompany,andcurrentlyownsaportfolioof14private

housingestateretailpropertiesinHongKongwithatotalgrossrentableareaofapproximately2.0millionsquarefeet.

1FORTUNE REITASIA’S FIRST CROSS BORDER AND THE ONLY DUAL-LISTED REIT



3 4

2PROPERTY LOCATION GROSS RENTABLE AREA (Square Feet)

1 Fortune City One Shatin 414,469

2 Ma On Shan Plaza Shatin 310,084

3 Metro Town Tseung Kwan O 180,822

4 Fortune Metropolis Hung Hom 332,168

5 Waldorf Avenue Tuen Mun 80,842

6 Caribbean Square Tung Chung 63,018

7 Smartland Tsuen Wan 123,544

8 Jubilee Square Shatin 170,616

9 Tsing Yi Square Tsing Yi 78,836

10 NOB Hill Square Kwai Chung 91,779

11 Centre de Laguna Kwun Tong 43,000

12 Hampton Loft West Kowloon 74,734

13 Lido Avenue Tsuen Wan 9,836

14 Rhine Avenue Tsuen Wan 14,604

Total 1,988,352



2 3

Listedon16December2005ontheSEHK,ProsperityREITwasthefirstprivatesectorREITinHongKong.ProsperityREITis

managedbyARAAssetManagement(Prosperity)Limited,awholly-ownedsubsidiaryoftheCompany,andcurrentlyowns

adiverseportfolioofsevenhighqualityoffice,industrial/office,andindustrialpropertiesinHongKong,withatotalgross

rentableareaofabout1.2millionsquarefeet.

1PROSPERITY REITFIRST PRIVATE SECTOR REIT IN HONG KONG



6 7

4 5PROPERTY LOCATION GROSS RENTABLE AREA (Square Feet)

1 The Metropolis Tower Hung Hom 271,418

2 Harbourfront Landmark (portion) Hung Hom 77,021

3 Prosperity Millennia Plaza North Point 217,955

4 Trendy Centre Cheung Sha Wan 173,764

5 Prosperity Place Kwun Tong 240,000

6 Prosperity Center (portion) Kwun Tong 149,253

7 New Treasure Centre (portion) San Po Kong 86,168

Total 1,215,579



Listed on 21 December 2006, AmFIRST REIT is one of the largest commercial REITs listed on Bursa Malaysia with eight

propertiesinitsportfoliowithapproximately2.6millionsquarefeetofnetlettablearea.AmFIRSTREITismanagedbyAm

ARAREITManagersSdn.Bhd.andiswholly-ownedbyAmARAREITHoldingsSdn.Bhd.,whichinturnis70%ownedby

AmInvestmentGroupBerhadand30%ownedbyARAAssetManagement(Malaysia)Limited,awholly-ownedsubsidiary

oftheCompany.

1AMFIRST REITCOMMERCIAL REIT IN MALAYSIA



7 8

3 4PROPERTY LOCATION NET LETTABLE AREA (Square Feet)

1 Bangunan AmBank Group Kuala Lumpur Golden Triangle 360,166

2 Menara AmBank Kuala Lumpur Golden Triangle 458,387

3 AmBank Group Leadership Centre Kuala Lumpur Golden Triangle 57,801

4 Kelana Brem Towers Kelana Jaya 286,267

5 Menara AmFIRST Petaling Jaya 159,001

6 The Summit Subang USJ Subang Jaya 1,030,741

7 Prima 9 Cyberjaya 111,224

8 Prima 10 Cyberjaya 100,272

Total 2,563,859



Listedon12April2010ontheSGX-ST,CachehasamandatetoinvestinlogisticspropertiesacrosstheAsiaPacificregion.

Cache ismanagedbyARA-CWTTrustManagement (Cache) Limited, a joint-venturebetweenARA (60% interest) and

CWTLimited(40%interest),thelargestlistedlogisticscompanyinSoutheastAsia.Cachecurrentlyownstenhighquality

logisticswarehousepropertieslocatedintheAsiaPacificRegion,withatotalgrossfloorareaofapproximately4.3million

squarefeet.

1

2

CACHE LOGISTICS TRUSTASIA-PACIFIC FOCUSED LOGISTICS REIT IN SINGAPORE



5 6

3 4PROPERTY LOCATION

GROSS FLOOR AREA (Square Feet)

1 CWT Commodity Hub Penjuru/Pandan, Singapore 2,295,927

2 CWT Cold Hub Penjuru/Pandan, Singapore 341,947

3 Schenker Megahub Airport Logistics Park of Singapore 439,789

4 Hi-Speed Logistics Centre Airport Logistics Park of Singapore 308,632

5 C&P Changi Districentre Changi International LogisPark (South), Singapore 364,361

6 C&P Changi Districentre 2 Changi International LogisPark (South), Singapore 111,359

7 APC Distrihub Changi North Logistics Park, Singapore 176,955

8 Kim Heng Tubulars Penjuru/Pandan, Singapore 54,449

9 Air Market Logistics Centre Loyang Industrial Park, Singapore 63,290

10 Jinshan Chemical Warehouse Shanghai Chemical Industry Park, China 145,815

Total 4,302,524




Listedon29April2011,HuiXianREITisthefirstoffshoreRMB-denominatedequityofferingtobelistedontheSEHK.Hui

XianREITismanagedbyHuiXianAssetManagementLimited,ajointventurebetweenCheungKongGroup(30%interest),

CITICSecuritiesGroupLimited (40%interest)andARA(30%interest).At thetimeof listing,HuiXianREIT’smainreal

estate asset was the Oriental Plaza, one of the largest and most iconic integrated developments in Beijing with a valuation of

RMB33.2billionandacombinedgrossfloorareaofapproximately800,000squaremeters.

HUIXIANREITFIRST RMB-DENOMINATED REIT IN THE WORLD



PROPERTY LOCATION APPROXIMATE GROSS FLOOR AREA (Square Meter)

Oriental Plaza

(The Malls, The Tower Offices,

The Tower Apartments, Grand

Hyatt Beijing)

Beijing, China 800,000

Total 800,000


PRIVATE REAL ESTATE FUNDS

the private real estate funds managed by aRa are generally unlisted closed-end investment vehicles with a

specified lifespan. these funds seek to acquire strategic and opportunistic real estate within their investment

mandate which offer the potential for higher risk-adjusted total returns through development, major

refurbishment or asset repositioning.

aRa currently manages private real estate funds investing in asia with total aum of s$5.1 billion (approximately

us$3.9 billion) as at 31 December 2011.

EstablishedinSeptember2007,theARAAsiaDragonFund(“ADF”)istheGroup’sflagshipprivaterealestatefundwith

aggregatecapitalcommitmentsinexcessofUS$1.1billion.Aclosed-endfund,theADFhasaninitiallifespanofsevenyears,

includinganinvestmentperiodoffouryears.

WithamandatetoinvestacrossAsiawithaprimaryfocusonthemaincitiesofChina,Singapore,HongKongandMalaysia

as well as a secondary focus on other emerging economies in Asia, the ADF attracted a broad range of investors including

public pension funds, foundations and other global institutional investors seeking to invest in a diversified portfolio of real

estateinvestmentsinAsia.LeveragingonARA’sexperienceandintimateknowledgeoftherealestatemarketinAsia,the

ADF seeks to make strategic and opportunistic investments in real estate assets with the goal of optimising total returns

fromacombinationofincomeandcapitalappreciation.

To date, the ADF has made investments in completed and development projects in the residential, retail and office sectors

inSingapore,HongKong,MalaysiaandinvariousmajorcitiesofChina–Nanjing,Dalian,ShanghaiandTianjin.Thefundis

fullyinvestedandhascommencedtherealisationofitsinvestments.

ARA ASIA DRAGON FUNDFLAGSHIP PRIVATE REAL ESTATE FUND INVESTING IN ASIA

ARA ASIA DRAGON FUND IISUCCESSOR FUND TO THE ARA ASIA DRAGON FUND


PRIVATE REAL ESTATE FUNDS

Established in September 2009, the ARA Harmony Fund is a single-asset private real estate fund which owns Suntec

Singapore.InAugust2011,theARAHarmonyFundachievedanoverallIRRof64.8%andanequitymultipleof2.2times

forinvestorswhentheprivateinvestorsinthefunddivestedtheirinterests.SuntecREITcurrentlyholdsaneffective60.8%

interestintheARAHarmonyFund.

Founded in 1996, APN Property Group Limited (“APN”) is one of Australia’s leading boutique real estate investment

managerswithAUMofA$2.5billionasat30September2011.APNcurrentlymanagesrealestatesecuritiesfunds,private

equityrealestatefunds,alistedREITandunlistedpropertyfundsinvestingprimarilyinAustralianrealestate.Asastrategic

shareholder, ARA will collaborate with APN on real estate fund opportunities in Australia, which may include the provision

ofseedcapital,capitalraisingand/orjointmanagementofsuchfunds.

AstheADFapproachedtheendofitsinvestmentperiod,theGroupestablishedtheARAAsiaDragonFundII(“ADFII”)in

July2011whichadoptsthesamesuccessfulandproveninvestmentstrategyofADF.TheADFIIisalsoaclosed-endfund

withaninitiallifespanoftenyears,includinganinvestmentperiodoffiveyears.

ARA HARMONY FUND

APN PROPERTY GROUP

PRIVATE REAL ESTATE FUND INVESTED IN THE SUNTEC SINGAPORE INTERNATIONAL CONVENTION & EXHIBITION CENTRE

STRATEGIC ALLIANCE WITH LEADING BOUTIQUE AUSTRALIAN REAL ESTATE FUND MANAGER



aRa’s real estate management services business division complements and supports the growth of the group’s

core Reits and private real estate funds business divisions through the provision of property management and

other supporting management services.

APMPropertyManagementPte.Ltd. (“APM”) isawholly-ownedsubsidiaryofARAandtheGroup’s in-houseproperty

managementarm.

APM is staffed by a team of experienced professionals with expertise in property and facilities management, leasing and

marketing.APMiscurrentlythepropertymanagerforSuntecREIT’spropertiesinSuntecCityaswellasthemanagingagent

for TheManagementCorporationStrata Title PlanNo.2197, responsible for themanagementandmaintenanceof the

commonpropertyofSuntecCity.APMhasapresenceinMalaysiaviatheprovisionofconsultancyservicestoretailmalls

ownedbytheADF.

SUNTEC SINGAPORE AND SUNTEC INTERNATIONALCONVENTION & EXHIBITION SERVICES PROVIDER

APM PROPERTY MANAGEMENTARA’S PROPERTY MANAGEMENT ARM



Suntec Singapore

Awholly-ownedsubsidiaryofARA,SuntecSingaporeInternationalConvention&ExhibitionServicesPte.Ltd.(“SSICES”)

hasateamofhighlydrivenanddedicatedprofessionalswithextensive local, regionaland internationalexperience.The

management team of SSICES has diverse backgrounds ranging from the airline, hospitality, healthcare, logistics to the

servicesectorindustries.Collectively,theydirectandmanageateamofspecialisedandhighlyprofessionalindividualswho

are well versed in the art and science of providing world-class service to ensure that all events held in Suntec Singapore

aresuccessfullyexecuted.TheSSICESteamhasbeenmanagingSuntecSingaporesinceitsinceptionin1995andoverthe

years, has accumulated extensive experience in hosting a range of events ranging from corporate meetings to mega-events,

including the World Trade Organisation Ministerial Meeting in 1996, the World Economic Forum in 1998, the Annual

MeetingsoftheBoardofGovernorsofthe InternationalMonetaryFundandtheWorldBankGroupin2006,theAPEC

EconomicLeaders’Meetings2009andtheSingapore2010YouthOlympicGames.SuntecSingaporehasalsobeenhome

toITBAsiasince2008aswellasTaxFreeWorldAssociationAsiaPacificsince1999.

Suntec International

SuntecInternationalConvention&ExhibitionServicesPte.Ltd.(“SuntecInternational”),awholly-ownedsubsidiaryofARA,

isheadquarteredinSingapore.LaunchedinMay2010,SuntecInternationalispositionedtoofferawiderangingportfolioof

services that include sales and marketing representation, venue management, franchising and brand transfer opportunities

andconsultancyservicesspeciallydesignedfortheMeetings,Incentives,ConventionsandExhibitions(“MICE”)andvenue

industry.SuntecInternationalofferscustom-designedsolutionsforclientsanddrawsontheexperience,knowledgeand

skillof residentexpertsatSuntecSingapore.Suntec International represents theVancouverConventionCentreand the

AdelaideConventionCentreinsalesandmarketing,andispursuingvenuemanagementopportunitiesintheregion.Suntec

International has signed a venue management as well as a consulting contract with one of Malaysia’s top developers, NAZA

TTDISdnBhd.SuntecInternationalhasalsosuccessfullycompletedanindustrydatabaseprojectthatwascommissioned

by Singapore’s MICE industry-trade association, the Singapore Association for Convention and Exhibition Organisers and

Suppliers(SACEOS)andthatwaslaunchedatITBAsia2011.

aRa Financial Pte. Ltd. (“aRa Financial”) is the group’s in-house corporate finance advisory arm. aRa Financial

currently provides advisory services on asset acquisitions by the Reits managed by the group and advises the

group on the establishment of Reits, partnerships and joint ventures as well as mergers and acquisitions.

CORPORATE FINANCE ADVISORY SERVICES



OUR PEOPLE


BOARD OF DIRECTORS

MrChiuKwokHungJustinistheFounderChairmanandNon-

ExecutiveDirectoroftheCompany.Heisalsothechairman

and non-executive director of ARA Asset Management

(Fortune)Limited(themanagerofFortuneREIT),ARATrust

Management (Suntec) Limited (the manager of Suntec

REIT)andARAAssetManagement(Prosperity)Limited(the

managerof ProsperityREIT). FortuneREIT is listedon the

MainBoardoftheSEHKandtheSGX-STwhileSuntecREIT

is listedontheSGX-STandProsperityREITis listedonthe

MainBoardoftheSEHK.MrChiuisalsoadirectorofARA

FundManagement (AsiaDragon) Limited as themanager

of the ARA Asia Dragon Fund. Mr Chiu is a member of

the 11th Shanghai Committee of the Chinese People’s

Political Consultative Conference of the People’s Republic

of China, a fellow of the Hong Kong Institute of Real Estate

Administrators and a member of the Board of Governors of

HongKongBaptistUniversityFoundation.

Mr Chiu has more than 30 years of international experience

in real estate in Hong Kong and various countries and is one

of the most respected professionals in the property industry

inAsia.MrChiu is anexecutivedirectorofCheungKong

(Holdings)Limited (“CheungKong”),acompany listedon

the Main Board of the SEHK. He joined Cheung Kong in

1997 and has been an executive director since 2000, heading

the real estate sales, marketing and property management

teams. Prior to joining Cheung Kong, Mr Chiu was with

Sino Land Company Limited from 1994 to 1997 and Hang

LungDevelopmentCompany,Limited(nowknownasHang

LungGroupLimited)from1979to1994,responsibleforthe

leasingandpropertymanagementinbothcompanies.Both

Sino Land Company Limited and Hang Lung Group Limited

arelistedontheMainBoardoftheSEHK.

Mr Chiu holds Bachelor degrees in Sociology and Economics

fromTrentUniversityinOntario,Canada.

CHIU KWOK HUNG JUSTINCHAIRMAN AND NON-EXECUTIVE DIRECTOR1.

1

2

3

4


board of directors

Mr Lim Hwee Chiang John is the Group Chief Executive

Officer and Executive Director of the Company since its

establishment.Heisanon-executivedirectorofARAAsset

Management (Fortune) Limited, ARA Trust Management

(Suntec) Limited, ARA Asset Management (Prosperity)

Limited, Am ARA REIT Managers Sdn. Bhd. (the manager

of AmFIRST REIT), ARA-CWT Trust Management (Cache)

Limited (the manager of Cache Logistics Trust), APN

PropertyGroupLimitedlistedinAustraliaandHuiXianAsset

Management Limited (the manager of Hui Xian REIT). Mr

Lim is also the chairman of APM Property Management

Pte. Ltd., Suntec Singapore International Convention &

Exhibition Services Pte. Ltd. and the management council

ofTheManagementCorporationStrataTitlePlanNo.2197

(SuntecCity).Inaddition,MrLimisanindependentdirector,

chairman of the remuneration committee and share options

scheme committee and member of the audit and nominating

committees of Singapore-listed Teckwah Industrial

Corporation Limited. He is also the vice president of the

Hong Kong-Singapore Business Association, the senior vice

president of the Asia Pacific Real Estate Association, a council

member of the Singapore Chinese Chamber of Commerce &

Industry and a member of the Valuation Review Board of the

MinistryofFinanceofSingapore.

MrLimhasmorethan30yearsofexperienceinrealestate.

Prior to founding ARA, from 1997 to 2002, he was an

executive director of GRA (Singapore) Pte. Ltd., a wholly-

owned subsidiary of Prudential (US) Real Estate Investors.

From 1996 to 1997, he founded and was the managing

director of The Land Managers (S) Pte. Ltd., a Singapore-

based property and consulting firm specialising in feasibility

studies, marketing and leasing management in Singapore,

HongKongandChina.Hewasthegeneralmanagerofthe

Singapore Labour Foundation Management Services Pte.

Ltd. from 1991 to 1995, and was with DBS Land Limited

(nowpartofCapitaLandLimited)from1981to1990.

MrLimholdsaBachelorofEngineering(FirstClassHonours)

in Mechanical Engineering, a Master of Science in Industrial

Engineering, as well as a Diploma in Business Administration,

each from the National University of Singapore

LIM HWEE CHIANG JOHNGROUP CHIEF EXECUTIVE OFFICER AND EXECUTIVE DIRECTOR2.

5

6

7


BOARD OF DIRECTORS

Mr Ip Tak Chuen Edmond is a Non-Executive Director of the

Company and member of the Remuneration Committee.

He is also the non-executive director of ARA Asset

Management(Fortune)LimitedandARATrustManagement

(Suntec)Limited.

Mr Ip has been an executive director of Cheung Kong since

1993 and deputy managing director since 2005, responsible

for overseeing all financial and treasury functions of

Cheung Kong and its subsidiaries, particularly in the fields

ofcorporateandprojectfinance.Hehasbeenanexecutive

directorofCheungKongInfrastructureHoldingsLimited(“CK

Infrastructure”) since its incorporation in 1996 and deputy

chairman since 2003, and the senior vice president and chief

investmentofficer ofCK Life Sciences Int’l., (Holdings) Inc.

(“CKLifeSciences”)since2002.Heoverseesmattersrelating

tocorporatefinance,strategicacquisitionandinvestmentof

bothCKInfrastructureandCKLifeSciences.MrIpisalsoa

non-executivedirectorofTOMGroupLimited(“TOM”),AVIC

InternationalHolding(HK)Limited(“AVIC”),ExcelTechnology

International Holdings Limited (“Excel”), Real Nutriceutical

Group Limited (formerly known as Ruinian International

Limited) (“Real Nutriceutical”) and Shougang Concord

International Enterprises Company Limited (“Shougang”).

Cheung Kong, CK Infrastructure, CK Life Sciences, TOM,

AVIC, Real Nutriceutical and Shougang are listed on the Main

BoardoftheSEHK.Excelis listedontheGrowthEnterprise

Market(GEM)oftheSEHK.

Prior to joining Cheung Kong, Mr Ip held a number of

senior financial positions in major financial institutions and

has extensive experience in the Hong Kong financial market

covering diverse activities such as banking, capital markets,

corporate finance, securities brokerage and portfolio

investments.

Mr Ip holds a Bachelor of Arts in Economics and a Master of

ScienceinBusinessAdministration.

Mr Lim How Teck is an Independent Non-Executive

Director of the Company and chairman of the Nominating

Committee. He is also the chairman of ARA-CWT Trust

Management (Cache) Limited, Certis CISCO Security Pte.

Ltd., Heliconia Capital Management Pte. Ltd. and deputy

chairman of Tuas Power Generation Pte Ltd. Mr Lim is

also an independent non-executive director of Swissco

HoldingsLtd,MewahInternationalInc.andRickmersTrust

Management Pte Limited (trustee-manager of Rickmers

Maritime),allofthemlistedontheSGX-ST.MrLimisalsoa

governoroftheFoundationforDevelopmentCooperation.

Currently, Mr Lim is the chairman of Redwood International

Pte. Ltd., an investment and consultancy company. From

1979 to 2005, Mr Lim was with Neptune Orient Lines

Ltd (“NOL”) where he held various positions including

executive director, group chief financial officer, group

chief operating officer and group deputy chief executive

officer. He also held directorships in various subsidiaries,

associatedcompaniesandinvestmentinterestsofNOL.Prior

Ip TAK CHUEN EDMONDNON-EXECUTIVE DIRECTOR

LIM HOW TECKINDEPENDENT NON-EXECUTIVE DIRECTOR

3.Mr Lee Yock Suan is an Independent Non-Executive Director

oftheCompanyandchairmanoftheAuditCommittee.

Mr Lee was elected as a Member of Parliament of Singapore

in 1980 and remained a Member of Parliament until his

retirementfrompolitics in2006.HewasaMinister inthe

Singapore Cabinet from 1981 to 2004 and his portfolios

included Finance, National Development, Education, Foreign

Affairs, Information and the Arts, Trade and Industry,

Environment and Labour. Mr Lee was also the chairman

of the Singapore Labour Foundation from 1997 to 2002,

deputy chairman of the People’s Association from 1984 to

1991 and deputy managing director of the Petrochemical

Corporationof Singapore Pte Ltd from1980 to1981.Mr

Lee started his career in the Economic Development Board

ofSingaporein1969.

Mr Lee holds a Bachelor of Science (First Class Honours)

in Chemical Engineering from the Imperial College, London

University and a Diploma in Business Administration from

theUniversityofSingapore.HewasawardedthePresident’s

Scholarshipin1966.

LEE YOCK SUANINDEPENDENT NON-EXECUTIVE DIRECTOR4.

5.


board of directors

Dr Cheng Mo Chi Moses is an Independent Non-Executive

Director of the Company and chairman of the Remuneration

Committee. He is also an independent non-executive

director of a number of public-listed companies. These

include the Hong Kong Exchanges and Clearing Limited,

K.Wah International Holdings Limited, China Mobile

Limited, China Resources Enterprise Limited, Towngas

China Company Limited, Kader Holdings Company Limited,

Liu Chong Hing Investment Limited, City Telecom (H.K.)

Limited, Guangdong Investment Limited and Tian An

China Investments Company Limited, all being public-listed

companies in Hong Kong. Dr Cheng is also the founder

chairman of The Hong Kong Institute of Directors of which

he isnow thehonorarypresidentandchairmanemeritus.

Presently, Dr Cheng is the chairman of the Education

Commission, the chairman of the Advisory Committee on

Post-office Employment for former Chief Executives and

Politically Appointed Officials, the chairman of the Advisory

Committee on Post-service Employment of Civil Servants,

and a member of the Financial Reporting Council of Hong

Kong. Dr Cheng is also an active Rotarian and served as

district governor of Rotary International District 3450

from 1993 to 1994. In addition, Dr Cheng is an active

member of the Anglican Church and is the chancellor

of the Province of the Hong Kong Sheng Kung Hui.

Dr Cheng is currently the senior partner of Messrs.

P.C. Woo & Co., a law firm in Hong Kong. He served as

a member of the Legislative Council of Hong Kong

between 1991 and 1995, and was appointed a Justice

of the Peace by the Hong Kong Special Administrative

RegionGovernmentin1996.

Dr Cheng holds a Bachelor of Laws from the University

of Hong Kong, a Post-Graduate Certificate in Laws from

the University of Hong Kong, a Doctor of Law from the

Hong Kong Baptist University and a Doctor of Law from

Lingnan University. Dr Cheng was awarded the Order of

the British Empire by Her Majesty, the queen of the United

Kingdom, in 1997 and the Gold Bauhinia Star medal by the

Hong Kong Special Administrative Region Government

in2003.

to joining NOL, he was with Coopers & Lybrand, an

international accounting firm and Plessey Singapore, a

multinationaltradingandmanufacturingcompany.

Mr Lim holds a Bachelor of Accountancy from the

UniversityofSingapore.Healso completed theCorporate

Financial Management Course and Advanced Management

Programme at the Harvard Graduate School of Business.

In addition, he is a fellow of the Chartered Institute of

Management Accountants, Certified Public Accountants

Australia, the Institute of Certified Public Accountants

of Singapore and the Singapore Institute of Directors as

well as an associate of the Australian Institute of Business

Administration. Mr Lim was awarded the Public Service

Medal (PBM) by the Singapore Government in 1999.

CHENG MO CHI MOSESINDEPENDENT NON-EXECUTIVE DIRECTOR6. Mr Colin Stevens Russel is an Independent Non-Executive

Director of the Company and member of the Audit,

Nominating andRemunerationCommittees.He is also an

independent non-executive director of CK Infrastructure,

CKLifeSciencesandHuskyEnergyInc..

Mr Russel is the founder and managing director of Emerging

MarketsAdvisoryServicesLtd.,acompanywhichprovides

advisory services on business strategy and planning, market

development,competitivepositioningandriskmanagement.

He is also the managing director of EMAS (HK) Limited.

From 1972 to 2001, Mr Russel held various appointments in

the Canadian Diplomatic Service, including ambassador to

Venezuela, consul general in Hong Kong, director for China

of the Department of Foreign Affairs (Ottawa), director

forEastAsiaTrade(Ottawa),seniortradecommissionerin

HongKong,directorforJapanTradeoftheDepartmentof

ExternalAffairs (Ottawa).Healso served in theCanadian

Trade Commissioner Service in Spain, Hong Kong, Morocco,

thePhilippines,Londonand India.Priortothat,MrRussel

was a project manager for RCA Limited in Canada, Liberia,

Nigeria, Mexico and India and a development engineer

with RCA Limited in Canada and with Associated Electrical

IndustriesLimitedintheUnitedKingdom.

Mr Russel holds a degree in Electronics Engineering and a

Master in Business Administration from McGill University,

Canada. He is a registered professional engineer and

qualifiedcommercialmediator.

COLIN STEVENS RUSSELINDEPENDENT NON-EXECUTIVE DIRECTOR7.


MANAGEMENT TEAM STRUCTURE

Lim hwee Chiang JohnGroup Chief Executive Officer

Suntec REITyeo see Kiat

CEO

Fortune REITanthony ang

CEO

Prosperity REITmaVis wong

Acting CEO

Hui Xian REITstePhen Chu

CEO

Cache Logistics TrustDanieL CeRF

CEO

CEO Public Market

John Lim

CEO Private Market

ng Beng tiong

CEO Principal Investments

moses song

ManagementServices

Corporate Finance Advisory

Services

Corporate Divisions

AmFIRST REITLim yoon Peng

CEO

Finance & Compliance

CheRyL seowSenior Director, Group Finance

CorporateOffice

ng Beng tiongDirector

Group OfficeAdministrationseRene yeo

Senior Manager

Corporate Business

Developmentmoses song

Director

Group Risk Management & IA

tangBoon Kang

Senior Manager

Group HR & Corporate

DevelopmentPauLine Lim

Senior Manager

ARA FinancialLow Poh Choo

Senior Director

APManthony yiP / susan sim

Deputy Chairman / CEO

Suntec SingaporePieteR iDenBuRg

CEO

SuntecInternational

PieteR iDenBuRgCEO

ARA CIPDeReK Lai

Senior Portfolio Manager

Australia Deskmoses song

Head

India Desk

Japan Desk

GCC Desk

ADF Ing Beng tiong

CEO

ADF IIPauL yi

CEO

ARA Harmony Fundsiew siew hoon

Fund Director

China Deskmun hon Pheng

Head


MANAGEMENT TEAM

Mr Yeo See Kiat is the chief executive officer and executive

director of ARA Trust Management (Suntec) Limited.

He is also a director of One Raffles Quay Pte. Ltd., BFC

DevelopmentPte.Ltd.andSuntecHarmonyPteLtd.

Mr Yeo has more than 30 years of experience in the real

estate industry, managing and overseeing various projects

with Hwa Hong Corporation Limited, The Wharf Group,

Parkway Holdings Limited, and CapitaLand Limited. He

has held senior management positions over the last 20

years. Mr Yeo started his career in Turquand Young (now

Ernst&Young)andwaswith thefirmfrom1976to1980.

Mr Yeo holds a Bachelor of Accountancy from the

University of Singapore and a Graduate Diploma in

Management Studies from the Singapore Institute of

Management. He is also a fellow of the Institute of

CertifiedPublicAccountantsofSingapore.

Mr Anthony Ang is the chief executive officer of ARA Asset

Management (Fortune) Limited. He is a Board member

of ARA Asia Dragon Limited (ARA Asia Dragon Fund),

the flagship US$1.1 billion private real estate fund of the

Group.MrAngisalsoanalternatedirectortoMrLimHwee

ChiangJohnofAmARAREITManagersSdn.Bhd.,andan

independent non-executive director of Armstrong Industrial

Corporation Limited, a precision engineering group listed on

theSGX-ST.Priortohiscurrentappointment,MrAngwasthe

chiefexecutiveofficerofARAManagers(AsiaDragon)Pte.

Ltd.,themanageroftheARAAsiaDragonFund.

Before joining the ARA Group in 2006, Mr Ang held various

seniorpositionswithGICRealEstatePte.Ltd.,aglobalreal

estate fund management company; Vertex Management

Pte Ltd, a Singapore-based global venture capital company;

Majulah Connection Limited, a global business networking

and consulting organisation, and Armstrong Industrial

Corporation Limited. Mr Ang began his career with

theSingaporeEconomicDevelopmentBoard(“EDB”)where

he served for 14 years, including 6 years in the United States

astheregionaldirectoroftheirNorthAmericanoperations.

Ms Mavis Wong is the acting chief executive officer of

ARA Asset Management (Prosperity) Limited. Prior to this,

she held various senior management appointments in ARA

AssetManagement(Prosperity)Limited.

MsWonghasmorethan15yearsofexperienceintheindustry.

Prior to joining the Group, she was the deputy manager

(leasing) for New World Development Company Limited

responsible for the marketing of office and industrial buildings

and overseeing the landlord profit and loss account. She

was an assistant leasing manager of Cheung Kong

(Holdings) Limited from 1997 to 2004, assistant property

manager of Jardine Matheson & Co Limited in 1997 and

administrative officer of Goodwill Management Limited

from 1995 to 1997. Ms Wong began her career with

YaohanDepartmentStore(HK)Limitedin1994.

MsWongholdsaBachelorofArtsfromtheChineseUniversity

of Hong Kong, a Postgraduate Certification in HK Law from

the City University of Hong Kong and a Diploma in Property

DevelopmentfromtheUniversityofHongKong.

MrAngholdsaBachelorofScience(MechanicalEngineering)

with First Class Honours from the Imperial College,

London University, and obtained a Master of Business

Administration from the European Institution of Business

Administration (INSEAD) in 1982 on a scholarship from

the Singapore and French governments. Mr Ang is a

fellow of the Chartered Management Institute (United

Kingdom) and a Council Member of the Chartered

Management Institute Singapore. He is also currently the

SecretaryoftheEDBSociety.

YEO SEE KIATCHIEF EXECUTIVE OFFICER

ARA TRUST MANAGEMENT (SUNTEC) LIMITED,MANAGER OF SUNTEC REIT

ANG MENG HUAT ANTHONYCHIEF EXECUTIVE OFFICER

ARA ASSET MANAGEMENT (FORTUNE) LIMITED,MANAGER OF FORTUNE REIT

WONG LAI HUNG MAVISACTING CHIEF EXECUTIVE OFFICER

ARA ASSET MANAGEMENT (PROSPERITY) LIMITED, MANAGER OF PROSPERITY REIT

Mr Lim Yoon Peng is the chief executive officer of Am

ARAREITManagersSdn.Bhd..

Prior to joining the Group, Mr Lim was the chief financial

officer of Axis REIT Managers Bhd, where he was involved in

the establishment of Axis REIT, the first REIT listed in Malaysia

in 2005. From 2001 to 2005, Mr Lim was the financial

controller and company secretary of Victoria Investments

LIM YOON pENGCHIEF EXECUTIVE OFFICER

AM ARA REIT MANAGERS SDN. BHD.,MANAGER OF AMFIRST REIT


MANAGEMENT TEAM

& Properties Pty Ltd, a real estate company focusing on

realestate inMelbourne,Australia.Hestartedhiscareer in

1980 as a credit and finance manager with Finplan Credit

& Leasing Sdn. Bhd. and was with various international

companies including Balfour, Williamson & Co. Ltd of the

UnitedKingdomandthePacificDunlopGroupofAustralia.

Mr Lim is a fellow of The Chartered Association of Certified

Accountants, United Kingdom, a member of the Malaysian

Institute of Accountants and a fellow of Certified Public

Accountants Australia. He is currently the vice chairman

oftheMalaysianREITManagersAssociation.

Limited, Primeland Realty Inc, and Century 21 Chartered

RealtyInc.

Mr Chu holds a Bachelor of Arts (Honours) and a Master

ofBusinessAdministration.

Mr Daniel Cerf is the chief executive officer of ARA-CWT

TrustManagement(Cache)Limited.

Mr Cerf has more than 20 years of experience in real

estate in Asia, working on investment and development

ventures in Singapore, Hong Kong, China, Malaysia,

Thailand, Philippines, Vietnam and Indonesia. Prior to

joining the Manager, Mr Cerf was the deputy chief

executive officer of K-REIT Asia Management Limited,

(themanagerofK-REITAsia,aREIT listedon theSGX-ST).

Mr Cerf is a licensed architect in the United States and

holds a Bachelor of Architecture Degree (Dean’s List)

fromtheUniversityofOklahoma,USA.

Mr Ng Beng Tiong is the chief executive officer of ARA

PrivateFunds,comprisingalltheprivatefundsintheGroup.

He is also the chief executive officer of ARA Managers

(AsiaDragon)Pte.Ltd..Heholdstheconcurrentappointment

of director, corporate office overseeing corporate

development, administration and training & development

fortheGroup.

Prior to joining the Group, from 2003 to 2007, Mr Ng was

the finance director of Low Keng Huat (Singapore) Ltd, a

property,constructionandhotelgrouplistedontheSGX-ST.

He was a director of Stone Forest M&A Pte Ltd, a mergers

and acquisitions advisory company from 2002 to 2003,

and director of corporate planning and business

development at Labroy Marine Limited, a shipping,

shipbuilding and marine engineering company listed

on the SGX-ST from 1997 to 2002. Mr Ng began his

career with DBS Bank Ltd in 1989, initially as a corporate

banker,andsubsequentlyasaninvestmentbanker.

MrNgholdsaMasterofEngineering(SoftwareEngineering)

(First Class Honours) from the Imperial College, London.

HeisalsoaCFACharterholder.

DANIEL CERFCHIEF EXECUTIVE OFFICER

ARA-CWT TRUST MANAGEMENT (CACHE) LIMITED, MANAGER OF CACHE LOGISTICS TRUST

NG BENG TIONGCHIEF EXECUTIVE OFFICER

ARA PRIVATE FUNDS

CHIEF EXECUTIVE OFFICER

ARA MANAGERS (ASIA DRAGON) PTE. LTD.,MANAGER OF THE ARA ASIA DRAGON FUND

DIRECTOR

CORPORATE OFFICEARA ASSET MANAGEMENT LIMITED

Mr Stephen Chu is the chief executive officer of Hui Xian

Asset Management Limited, a 30% associated company

of ARA. Prior to this, he was the chief executive officer

ofARAAssetManagement(Prosperity)Limited.

Mr Chu has more than 20 years of international property

experience in the fields of leasing, sales, facility and property

management and marketing work covering the retail,

residential, hotel, and commercial sectors of the real estate

market.PriortojoiningtheGroup,MrChuwaswithHarbour

Plaza Hotels & Resorts from 1998 to 2007 where he held

various positions including general manager, and deputy

generalmanager(groupleasing).Beforethat,heheldsenior

posts with various companies including Sino Land Company

STEpHEN CHUCHIEF EXECUTIVE OFFICER

HUI XIAN ASSET MANAGEMENT LIMITED,MANAGER OF HUI XIAN REIT

MrPaulYiisthechiefexecutiveofficerofARAManagers(Asia

Dragon II) Pte. Ltd.. He holds the concurrent appointment

pAUL YICHIEF EXECUTIVE OFFICER

ARA MANAGERS (ASIA DRAGON II) PTE. LTD.,MANAGER OF THE ARA ASIA DRAGON FUND II

DIRECTOR

INVESTMENT & RESEARCH,ARA PRIVATE FUNDS


MAnAgeMent teAM

of director, investment and research of ARA Private Funds,

responsible for sourcing, evaluating and underwriting of

investmentopportunitiesfortheARAprivatefundsplatform.

Prior to joining the Group, Mr Yi was based in Tokyo from

2005 to 2008 as a managing director at Capmark Finance

Inc., responsible for the company’s business development

and funds management platform in Asia. From 2000 to

2005, Mr Yi was based in Seoul and Hong Kong with

Merrill Lynch (Asia) as a director in the global principal

investments group covering real estate investment activities

inAsiaex-Japan.MrYialsoworkedforBlackrockInc.from

1998 to 2000 as an associate. Mr Yi began his career in

theUnitedStates,asananalystatPNCBankN.A in1996.

Mr Yi holds a Master of Business Administration and Bachelor

degree, both from the Pennsylvania State University, USA.

SIEW SIEW HOONFUND DIRECTOR

ARA MANAGERS (HARMONY) PTE. LTD.,MANAGER OF THE ARA HARMONY FUND

DIRECTOR

ASSET MANAGEMENT, ARA MANAGERS (ASIA DRAGON) PTE. LTD.,MANAGER OF THE ARA ASIA DRAGON FUND

MrMunHonPhengisthecountryheadofARA’sChinaDesk.

Prior to joining the Group, Mr Mun operated a boutique

advisory business specialising in advising Singapore

companiesoncrossborderacquisitionopportunitiesinChina

particularly in the acquisitionof commercial properties.Mr

Mun began his career in banking with the SIMBL, a joint

venture merchant bank between a UK merchant bank and

OCBC in 1982. He subsequently joined the First National

Bank of Chicago where he served for eight years, including

four years in Beijing, China as the bank’s representative

and three years in Hong Kong heading the bank’s China

group.HewasalsoanexecutivedirectorofSingapore-listed

Aztech Systems Ltd, an Information Technology company.

Mr Mun holds a Bachelor of Commerce (Accounting

and Information Systems) from the University of New

South Wales, Australia and a Master of Business

Administration from the Australian Graduate School

of Management, Australia. He is also a member of the

Chartered Institute of Arbitrators (United Kingdom) and

fellowoftheSingaporeInstituteofArbitrators.

MUN HON pHENGCOUNTRY HEAD, CHINA

Ms Siew Siew Hoon is the fund director of ARA Managers

(Harmony) Pte. Ltd.. She is also the director, asset

management of ARA Managers (Asia Dragon) Pte. Ltd.,

where she is responsible for the management of the

residentialassetsinthefundportfolio.

Ms Siew has close to 20 years of experience in the marketing,

sales, leasing and management of real estate in both

SingaporeandAustralia.ShejoinedARAin2004,managing

the AIFEREF which was fully divested in 2007. Prior to

joining the Group, Ms Siew was the marketing manager of

The Land Managers (S) Pte. Ltd., where she was involved

in the development and sales of residential

properties in Singapore. Ms Siew started her career

with the Far East Organization, one of the largest

propertydevelopersinSingapore.

MsSiewholdsaBachelorofScience (EstateManagement)

fromtheNationalUniversityofSingapore.

Mr Moses Song is the chief executive officer of principal

investments of the Group. He holds the concurrent

appointment of director, corporate business development

responsible for the establishment of new investment

management platforms and the Group’s business

developmentinitiatives.Inaddition,heoverseestheAustralia

DeskoftheGroup.MrSongisalsoanalternatedirectorto

MrLimHweeChiangJohnofARA-CWTTrustManagement

(Cache)Limited.

Prior to joining the Group, Mr Song was a principal and chief

operatingofficeratLubert-AdlerAsiaAdvisorsPte.Ltd.,the

Asia investment platform of United States-based real estate

privateequityfirmLubert-AdlerPartnersL.P.,wherehewas

responsible for North Asia investment opportunities, and

withMarathonAssetManagement(Singapore)Pte.Ltd.,as

managing director responsible for real estate finance and

MOSES SONGCHIEF EXECUTIVE OFFICER

PRINCIPAL INVESTMENTS

DIRECTOR

CORPORATE BUSINESS DEVELOPMENT

COUNTRY HEAD, AUSTRALIA


MANAGEMENT TEAM

Prior to that, Mr Yip was the senior vice president, planning

andbusinessdevelopmentforRafflesHoldingsLimited.

Mr Yip holds a Master in Business Administration from the

National University of Singapore and Bachelor of Engineering

(Civil) from the University of Auckland, New Zealand. He

was the President of the Shopping Centre Association of

Singapore and currently serves on the Singapore National

FamilyCouncil.

Mr Pieter Idenburg is the executive director and chief executive

officer of Suntec Singapore International Convention &

ExhibitionServicesPte.Ltd.,aswellaschiefexecutiveofficer

of Suntec International Convention & Exhibition Services

Pte.Ltd..

Having been with Suntec Singapore since 2005, Mr

Idenburg brings more than 20 years of extensive senior

management expertise and international experience from

the airline and hospitality industries where he has worked

with American Airlines, The Walt Disney Company and

pIETER IDENBURGCHIEF EXECUTIVE OFFICER

SUNTEC SINGAPORE INTERNATIONAL CONVENTION & EXHIBITION SERVICES PTE. LTD.

SUNTEC INTERNATIONAL CONVENTION & EXHIBITION SERVICES PTE. LTD.

SUSAN SIMCHIEF EXECUTIVE OFFICER

APM PROPERTY MANAGEMENT PTE. LTD.

Ms Susan Sim is the chief executive officer of APM Property

ManagementPte.Ltd..

Ms Sim has more than 20 years of experience in property

development and management in Singapore, Malaysia,

China, Indonesia and Vietnam. Prior to joining the Group,

Ms Sim was the co-founder and chief executive officer of

SGLCapital InvestmentPte.Ltd.,managerofanAIM-listed

Vietnam property fund. She was the general manager of

GuocoLand Limited and prior to that, the senior vice president

ofMapletreeInvestmentsPte.Ltd.anddirector(retail)ofDBS

LandPte.Ltd.(nowknownasCapitaLandLtd).MsSimbegan

hercareerwiththeSingaporeTourismBoard.

Ms Sim holds a Bachelor of Science in Finance (Honours)

fromtheSouthernlllinoisUniversity,USA.

Mr Anthony Yip is the deputy chairman of APM Property

ManagementPte.Ltd..

Mr Yip has more than 30 years experience in the real estate

sector focusing on mixed-use developments, the hospitality

industryandrecentlyintheeducationindustry.Priortojoining

the Group, Mr Yip was the chief executive of Shatec Institutes

PteLtd,ahospitalityandculinaryinstitution.Hewasdirector

(retail management) at Far East Organization, director and

general manager of Tincel Properties, the previous owner of

theRafflesCityComplex.

ANTHONY YIpDEPUTY CHAIRMAN

APM PROPERTY MANAGEMENT PTE. LTD.

Mr Derek Lai is the senior portfolio manager of ARA CIP.

Prior to joining the Group, Mr Lai was a principal at the

Blackstone Group in Hong Kong, where he was responsible

for investment opportunities in the Greater China region, and

was with the Global Commercial Real Estate division of Merrill

Lynch(AsiaPacific)asvicepresidentresponsibleforrealestate

investmentsinAsia.Priortothat,hewasanassociateinthe

Asia Real Estate Fund of the Carlyle Group and an analyst in

theRealEstatePrivateEquityGroupofDeutscheBankAG.

Mr Lai holds a Bachelor of Commerce from the University

ofBritishColumbia.HeisalsoaCFACharterholder.

DEREK LAISENIOR PORTFOLIO MANAGER

ARA CIP

investmentsinAsia.HewasbasedinHongKongfrom2004

to2007withMerrillLynch(AsiaPacific)Ltd.asadirectorin

the global commercial real estate group and Morgan Stanley

AsiaLtd.asavicepresidentofMorganStanleyInternational

RealEstateFunds.MrSongbeganhiscareerasacorporate

and real estate finance attorney in the United States. He

moved to Asia in 2000 as a seconded attorney to Morgan

Stanley InternationalRealEstateFunds inTokyo,Japanand

was appointed general counsel of Morgan Stanley’s real

estateassetmanagementplatforminKoreain2001.

MrSongholdsaJurisDoctorfromtheVanderbiltUniversity

School of Law and a Bachelor of Science in Economics from

theCentreCollege.HeisamemberoftheStateBarofTexas

(inactivestatus).


MAnAgeMent teAM

British Airways in the United States and Europe.

Mr Idenburg has a track record as an innovator

in the service industry and has been influential

in implementing large scale change initiatives to

increaseshareholders’value.

At Suntec Singapore, Mr Idenburg has been instrumental

in helming landmark projects such as the extensive building

enhancement programme; he led the teams that were

responsible for the complex Suntec Singapore venue

operationsfortheIMF-WorldBankAnnualMeetings(2006),

APEC Singapore (2009) and the Singapore 2010 Youth

Olympic Games. Within the organisation, he has been

influentialindrivingchangeatalllevels.Hehasbeensuccessful

in growing the business exponentially while encouraging

employees to constantly raise the bar in providing service

excellence.

Mr Idenburg is presently chairman of the Board of the

DutchChamberofCommerce (Singapore) and also sits on

theBoardofSingapore’sEuropeanChamberofCommerce.

He also serves as a committee member of the Hospitality

and Retail Group of the Singapore International Chamber

ofCommerce.

MsLowPohChooistheseniordirectorofARAFinancialPte.

Ltd.,thecorporatefinanceadvisoryarmoftheGroup.

Prior to joining the Group, Ms Low was vice president of

global financialmarkets (assetbacked structuredproducts)

atDBSBankLtdfrom2003to2006.ShewaswiththeREIT

origination team, where she evaluated, advised, structured

andmarketedvariousprimaryandsecondaryREITofferings.

Ms Lowbeganher career as anequity analyst andhas17

years of experience in the field, including 11 years as a

specialistintherealestatesector.

Ms Low holds a Bachelor of Arts from the University of

California,Berkeley,USA.

LOW pOH CHOOSENIOR DIRECTOR

ARA FINANCIAL PTE. LTD.

Ms Seow Bee Lian Cheryl is the senior director, group finance

ofARA.

Prior to joining the Group, Ms Seow established and ran her

own boutique consultancy firm providing accounting and

consultancy services to small and medium enterprises from

2002 to 2003. From 1990 to 2002, she was with various

companieslistedontheSGX-ST.Shewasthedeputyfinancial

controller and company secretary of L.C. Development Ltd

from 1997 to 2002, and was with Royal Sporting House from

1994 to 1997 and Lum Chang Holdings Limited from 1990

to1993.MsSeowbeganhercareerwithDeloitte&Touche,

Singaporein1988.

Ms Seow holds a Bachelor of Accountancy from the National

University of Singapore and is a Certified Public Accountant

with the Institute of Certified Public Accountants of

Singapore.

SEOW BEE LIAN CHERYLSENIOR DIRECTOR

GROUP FINANCE


INVESTOR RELATIONS AND AWARDS

ARA maintains timely and consistent communications with stakeholders including shareholders, prospective investors, analysts

andthemedia.ARAmakesdisclosuresonanimmediatebasisasrequiredundertheListingManualoftheSGX-ST,orassoonas

possiblewhereimmediatedisclosureisnotpracticable.Inadditiontoface-to-facemeetingsandconferencecallswithanalystsand

investors, ARA also participates in investment conferences and non-deal roadshows and where appropriate, conducts interviews

withthemedia.

Through a proactive investor relations and communications programme, ARA has been able to raise the level of awareness and

understandingoftheGroup’sbusiness,strategyandfinancialperformance.

ARA is committed to maintaining effective engagement of stakeholders and will continue to strive towards enhancing investor

relationspractices,corporategovernanceandtransparency.Tothisend,theGroup’semphasisoneffectiveinvestorrelationshas

been recognized by the investment community with numerous awards including:

ARA Asset Management

• Asia’s“200BestUnderaBillion”,ForbesAsia2011

• BusinessSuperbrands2011/2012,Superbrands

• Merit Award – Internal Audit Excellence Award, SIAS

Investors’ Choice Award 2011

Suntec REIT

• RunnerUp(REITsCategory)–MostTransparentCompany

Award, SIAS Investors’ Choice Award 2011


investor relations and awards

Fortune REIT

• DirectorsoftheYearAwards2011–ListedCompanies Board (SEHK – Non Hang Seng Index Constituents), The Hong Kong Institute of Directors

• GoldAward–OverallAnnualReport:REIT,International AnnualReportCompetition(ARC)Awards2011

• BronzeAward–Cover:RealEstate,InternationalAnnual ReportCompetition(ARC)Awards2011

• Bronze Award – Interim Report 2011, International Mercury Awards

• HonourAward–CorporateWebsite,iNOVAAwards2011

• Best Use of Knowledge Management of the Year (Property Management) - Customer Relationship Excellence Awards 2011, The Asia Pacific Customer Service Consortium

• CustomerServiceCentreoftheYear(Merit)-Customer Relationship Excellence Awards 2011, The Asia Pacific Customer Service Consortium

prosperity REIT

• Silver Award - Annual Report – REIT Sector, GALAXY Awards 2011

• BronzeAward–REITSector, LACP2010VisionAwards Annual Report Competition

• Corporate Service Team of the Year - Customer

Relationship Excellence Award 2011, The Asia Pacific Customer Service Consortium

• FirstRunner-up–WaterConservationDesignCompetition for Prosperity Place, The Water Supply Department, Hong Kong

• Excellence in Facility Management Award (Office Building), The Hong Kong Institute of Facilities Management

Suntec Singapore

• Asia’s LeadingMeetingsandConferenceCentre,World Travel Awards 2011

• Best Business Event Venue Experience, Singapore Experience Awards 2011

• Meritorious Home Team Partner Award, Ministry Of Home Affairs

• Distinguished Patron of The Arts Award, National Arts Council

• AIPC Innovation Award Member’s Choice, AIPC Innovation Award 2011

• Best International Venue – Special Commendation, Exhibition News Awards 2011

• Best Convention/Exhibition Centre (Second Runner-up), CEI Industry Awards 2011

• BestMICESalesTeam(SecondRunner-up),CEI Industry Awards 2011


CORPORATE INFORMATION

BOARD OF DIRECTORSChiu Kwok Hung JustinChairman & Non-Executive Director

Lim Hwee Chiang JohnGroup Chief Executive Office and Executive Director

Ip Tak Chuen Edmond Non-Executive Director

Lee Yock Suan Independent Non-Executive Director

Lim How Teck Independent Non-Executive Director

Cheng Mo Chi MosesIndependent Non-Executive Director

Colin Stevens Russel Independent Non-Executive Director

AUDIT COMMITTEELee Yock Suan (Chairman)

Lim How TeckCheng Mo Chi MosesColin Stevens Russel

REMUNERATION COMMITTEECheng Mo Chi Moses (Chairman)

Lim How TeckColin Stevens RusselIp Tak Chuen Edmond

NOMINATING COMMITTEELim How Teck (Chairman)

Cheng Mo Chi MosesColin Stevens Russel

COMpANY SECRETARYYvonne Choo

ASSISTANT COMpANY SECRETARIESBusarakham KohsikapornIra Stuart Outerbridge III

REGISTERED OFFICEClarendon House

2 Church Street

Hamilton HM 11

Bermuda

pRINCIpAL pLACE OF BUSINESS6 Temasek Boulevard #16-02 Suntec Tower Four

Singapore 038986

Tel: 65-6835 9232

Fax: 65-6835 9672

SINGApORE SHARE TRANSFER AGENTBoardroom Corporate & Advisory Services Pte. Ltd.50 Raffles Place #32-01 Singapore Land Tower

Singapore 048623

AUDITORSKPMG LLP16 Raffles quay #22-00 Hong Leong Building

Singapore 048581

(Partner-in-charge:EngChinChin)

(Appointmentsincefinancialyearended

31December2007)

pRINCIpAL BANKERSDBS Bank Ltd6ShentonWay

DBS Building Tower One

Singapore 068809

Standard Chartered Bank8 Marina Boulevard

Tower 1 Level 25

Marina Bay Financial Centre

Singapore 018981

United Overseas Bank Limited80 Raffles Place

UOB Plaza

Singapore 048624


FINANCIAL STATEMENTS

Report on Corporate Governance

Directors’ Report

Statement by Directors

Independent Auditors’ Report

Statements of Financial Position

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

ConsolidatedStatementofChangesinEquity

Consolidated Statement of Cash Flows

Notes to the Financial Statements

Supplementary Information

Shareholders’ Information

Notice of Annual General Meeting

Notice of Books Closure

58

74

77

78

80

81

82

83

85

87

131

133

135

140


REPORT ON CORPORATE GOVERNANCE

ARA is committed to ensuring that high standards of corporate governance are practiced throughout the Group in line with

theCodeofCorporateGovernance2005(the“Code”).Webelievethatsoundcorporategovernancepoliciesandpractices

arethefoundationforatrusted,successfulandrespectedbusinessorganisation.Asweworktowardsourlongtermstrategic

objectives, we seek to observe both the substance and spirit of the Code while bearing in mind the Group’s specific business

needsandinterestsofourstakeholders.

This report describes the Group’s application of the corporate governance principles and guidelines of the Code which is

underpinnedbyarobustsystemofinternalcontrolsandaccountabilitytoourstakeholders.Thisisafundamentalpartofour

objectivestoprotectandenhanceshareholdervalueanddeliverlongtermsustainablegrowthoftheGroup.

ARA is pleased to confirm that the Group has adhered to the principles and guidelines of the Code unless specified otherwise

andprovidedexplanationsincasesofnon-compliance.

BoaRD matteRs

the BoaRD’s ConDuCt oF aFFaiRs

Principle 1 every company should be headed by an effective Board to lead and control the company. the

Board is collectively responsible for the success of the company. the Board works with

management to achieve this and the management remains accountable to the Board.

TheBoardisentrustedwiththeresponsibilityofoverseeingtheGroup’soverallmanagementandguidingitsstrategicdirection.

The Board’s role includes:-

(i) providingentrepreneurial leadership, setting strategicobjectives andensuring that thenecessaryfinancial andhuman

resources are in place for the Group to meet its objectives;

(ii) establishingaframeworkofprudentandeffectivecontrolstoassessandmanagerisksandsafeguardingofshareholders’

interests and the Group’s assets;

(iii)establishinggoalsforManagementandreviewingManagement’sperformancebymonitoringtheachievementofthese

goals;

(iv)identifyingthekeystakeholdergroupsandrecognisethattheirperceptionsaffecttheGroup’sreputation;

(v) settingGroupvaluesandstandards(includingethicalstandards)andensuringthatobligationstoshareholdersandother

stakeholders are understood and met; and

(vi)consideringsustainabilityissuessuchasenvironmentalandsocialfactors,aspartofitsstrategicformulation.

Each of our Directors is a well respected individual from the corporate and/or international circles and he brings to the Board

hisdiversifiedexperience,objectivejudgmentandstrategicnetworkingrelationships,whichfurthertheinterestsoftheGroup.

Collectively and individually, the Directors act in good faith and exercise due care and diligence in the course of deliberations

andconsiderobjectivelyatalltimestheinterestsoftheGroupanditsshareholders.ProfilesoftheDirectorscanbefoundin

pages44to47ofthisReport.



TheBoardhasadoptedinternalguidelinessettingforthmattersthatrequireBoardapproval.MattersrequiringBoardapproval

includematerialacquisitionanddisposalofassets,investmentsanddivestments,capitalexpenditureandoperatingbudgets,

commitments to term loans and lines of credit as well as any transaction involving a conflict of interest of a substantial

shareholderoraDirector.Management,ontheotherhand,isresponsiblefortheday-to-dayoperationandadministrationof

theCompanyinaccordancewiththepoliciesandstrategiesestablishedbytheBoard.

The Board regularly reviews Management’s key activities relating to the Group’s financial performance, business plans, internal

controlsandkey risks.DirectorsarealsobriefedbyManagementon the strategicdirectionsandbusinessactivitesof the

Group, and are provided with relevant information on the Group’s operating policies and procedures, including but not

limited to corporate governance practices, employee code of ethics, disclosure of interests and prohibitions on dealings in the

Company’ssecurities.

TheBoardconducts regular scheduledmeetingsat least four timesayear. Ad-hocmeetingsareconvenedasandwhen

warrantedbymattersrequiringtheBoard’sattention.TheCompany’sBye-Lawsprovidesformeetingstobeheldviatelephone

conference.TheparticipationofeachDirectorinthevariousBoardandBoardCommitteemeetingsheldduringtheyearunder

reviewissummarisedinpage72ofthisReport.

Allnewly-appointedDirectorsaregivenlettersexplainingthetermsoftheirappointmentaswellastheirdutiesandobligations.

A comprehensive orientation programme, which includes Management presentations of the Group’s annual business

andstrategicplans, isarrangedforallDirectorsonanannualbasis.Whererequired,theCompanySecretaryandexternal

professionals bring to the Directors’ attention relevant updates in the industry and changes in accounting standards and

regulations.

BoaRD ComPosition anD guiDanCe

Principle 2 there should be a strong and independent element on the Board, which is able to exercise

objective judgement on corporate affairs independently, in particular, from management. no

individual or small group of individuals should be allowed to dominate the Board’s

decision making.

The composition of the Board is determined in accordance with the following principles:

• atleastone-thirdoftheBoardshouldcompriseIndependentNon-ExecutiveDirectors;

• theChairmanoftheBoardshouldbeaNon-ExecutiveDirector;and

• theBoardshouldcompriseDirectorswithabroadrangeofcommercialexperienceincludingexperienceinfundmanagement,

finance,lawandrealestate.

OurBye-Lawsprovide that theBoard shall consistofno fewer than twoDirectors.Currently, theBoard comprises seven

members: one Executive Director, two Non-Executive Directors and four Independent Non-Executive Directors. The

IndependentNon-ExecutiveDirectors(withinthedefinitionoftheCode)areMrLeeYockSuan,MrLimHowTeck,DrCheng

MoChiMosesandMrColinStevensRussel.



TheIndependentNon-ExecutiveDirectorsexerciseobjectivejudgmentontheGroup’saffairsindependentlyfromManagement.

The Independent Non-Executive Directors have no relationship with the Company, its related companies or their officers that

could interfere, or be reasonably perceived to interfere, with the exercise of their independent business judgment in the best

interestsoftheGroup.

The current composition of the Board includes a diverse breadth of industry expertise, knowledge and experience in areas

suchasaccounting,finance,legal,strategicplanningandbusinessmanagement.ThisenablesManagementtobenefitfrom

external and expert perspectives of the Directors who collectively possess the core competencies relevant to the direction and

growthoftheGroup.TheBoardalsoreviewsitssizeandcompositionregularlytoensureanappropriatemixofexpertiseand

experiencefortheGroup’soperations.

The Board is supported by various Board Committees, namely the Audit Committee, Nominating Committee and Remuneration

CommitteetoassisttheBoardindischargingitsresponsibilitiesandenhancetheGroup’scorporategovernanceframework.

The Board has delegated specific responsibilities to these Board Committees and their composition and terms of reference are

describedinthisReport.

The Board accepts that while these Board Committees have the authority to examine particular issues in their specific areas

respectively, the Board Committees shall report back to the Board with their decisions and/or recommendations as the ultimate

responsibilityonallmatterslieswiththeentireBoard.

ChaiRman anD gRouP ChieF eXeCutiVe oFFiCeR

Principle 3 there should be a clear division of responsibilities at the top of the company – the working of the

Board and the executive responsibility of the company’s business – which will ensure a balance

of power and authority, such that no one individual represents a considerable concentration

of power.

The positions of Chairman and Group CEO are held by separate individuals to ensure an appropriate balance of power,

increasedaccountabilityandgreatercapacityoftheBoardforobjectivedecision-making.

OurChairmanandNon-ExecutiveDirector,MrChiuKwokHungJustin,isresponsiblefortheoverallleadershipofourBoard.

MrChiualsoensuresthatDirectorsreceivecomplete,adequateandtimelyinformation,andthereiseffectivecommunication

with shareholders. He also encourages constructive exchange of views between our Board members and Management,

facilitates the effective contribution of Non-Executive Directors, promotes a culture of openess and high standards of corporate

governance.

OurGroupCEOandExecutiveDirector,MrLimHweeChiangJohn,workswiththeBoardtodeterminethebusinessstrategies

fortheGroupandisresponsiblefortheday-to-dayoperations.MrLimworkswiththeManagementoftheGrouptoensure

thattheGroupoperatesinaccordancewithitsstrategicandoperationalobjectivesestablishedbytheBoard.



BoaRD memBeRshiP

Principle 4 there should be a formal and transparent process for the appointment of new directors to

the Board.

Board renewal is a continual and essential process to ensure that the Board remains relevant to changing business environment

andmaintaininggoodcorporategovernance.TheBoardhasestablishedaNominatingCommitteewhichcomprises three

IndependentNon-ExecutiveDirectorsnamelyMrLimHowTeck,DrChengMoChiMosesandMrColinStevensRussel.The

Chairman of the Nominating Committee is Mr Lim How Teck who is neither a substantial shareholder of the Company nor

directlyassociatedwithasubstantialshareholderoftheCompany.

TheNominatingCommitteeisguidedbyitstermsofreferencewhichsetsoutitsresponsibilities.Theseinclude:

(i) reviewingandrecommendingtotheBoardthestructure,sizeandcompositionoftheBoardandBoardCommittees;

(ii) reviewingBoardsuccessionplansforDirectors,inparticular,theChairmanandtheGroupCEO;

(iii)establishingproceduresforandmakingrecommendationstotheBoardonallBoardappointmentsandre-appointments

(aswellasalternateDirectors,ifapplicable);

(iv)determiningonanannualbasisifaDirectorisindependent;

(v) evaluatingifaDirectorhasmultipleBoardrepresentationsandifheisabletoandhasbeenadequatelycarryingouthis

duties as a Director; and

(vi)evaluatingtheperformanceoftheBoard,itsBoardCommitteesandDirectorsandproposingobjectiveperformancecriteria

fortheBoard’sapproval.

TheNominatingCommitteereportstotheBoardandmeetsatleastonceayear.

The Nominating Committee has put in place a transparent and formal process for shortlisting, evaluating and nominating

candidates for appointment of new Directors and re-appointment of Directors. The Nominating Committee makes

recommendations to the Board on the suitability of candidates based on key attributes such as integrity, commitment, financial

literacy, competencies and state of independence pursuant to the guidelines set out under the Code and detemines whether

there are any relationships or circumstances which are likely to affect the independence, or could appear to affect, the

Director’sjudgement.

The Nominating Committee reviews the independence of Board members annually and has determined that Mr Lee Yock

Suan, Mr Lim How Teck, Dr Cheng Mo Chi Moses and Mr Colin Stevens Russel are independent and free from any of the

relationshipsasstatedintheguidelinesoftheCode.

Although the Non-Executive Directors hold multiple directorships in other companies, the Nominating Committee reviews that

sufficient time and attention are being given by the Directors to the affairs of the Group annually and is of the view that such

multipleBoardrepresentationsdonothinderthemfromcarryingouttheirdutiesasDirectorsoftheCompany.TheBoard

affirmsandsupportsthisview.

OurBye-Laws require that eachDirector shall retire at leastonceevery three yearsbutwouldbeeligible for re-election.


AnewlyappointedDirectorisalsorequiredtosubmithimselfforretirementandre-electionattheAnnualGeneralMeeting

(“AGM”)immediatelyfollowinghisappointment.AsummaryofeachDirector’sinitialappointmentandlastre-electionaswell

ashisdirectorshipsinlistedcompaniesissetoutinpage73ofthisReport.

In recommending a Director for re-election to the Board, the Nominating Committee will consider, amongst other things, his

performanceandcontributionstotheBoard(includingattendanceandparticipationatmeetings,timeandeffortaccordedto

theGroup’sbusinessandaffairs).

TheNominatingCommitteehasrecommendedthenominationofMrLimHweeChiangJohn,MrIpTakChuenEdmondand

MrLeeYockSuanforre-electionattheforthcomingAGM.TheBoardhasacceptedthisrecommendationandbeingeligible,

MrLimHweeChiangJohn,MrIpTakChuenEdmondandMrLeeYockSuanwillbeofferingthemselvesforre-electionatthe

AGM.

BoaRD PeRFoRmanCe

Principle 5 there should be a formal assessment of the effectiveness of the Board as a whole and the

contribution by each director to the effectiveness of the Board.

WebelievethattheperformanceoftheBoardisultimatelyreflectedinthelongtermperformanceoftheGroup.

The Nominating Committee acknowledges the importance of a formal assessment of the Board and Directors’ performance

andhasadoptedaformalsystemofevaluatingtheirperformanceasawhole.TheNominatingCommitteedeterminesthe

performance criteria which include an evaluation of the size and composition of the Board, the Board’s access to information,

its accountabilty and processes, communication with Management, standards of Directors’ conduct and the Board’s and

individualdirector’sperformanceinrelationtodischargingtheirprincipalresponsibilities.

This collective assessment is conducted by means of a confidential questionnaire completed by each Director, which is

collated,analysedanddiscussedwiththeNominatingCommitteeandtheBoardwithcomparativesfromthepreviousyear.

Recommendations to further enhance the effectiveness of the Board are implemented, as appropriate. The Nominating

Committee had conducted a performance evaluation of the Board and Audit Committee for FY2011 and determined that all

Directorscontributedeffectivelyanddemonstratedfullcommitmentstotheirroles.

aCCess to inFoRmation

Principle 6 in order to fulfill their responsibilities, Board members should be provided with complete,

adequate and timely information prior to board meetings and on an ongoing basis.

WebelievethattheBoardshouldbeprovidedwithcomplete,adequateandtimelyinformationpriortoBoardmeetingsand

onanongoingbasis.ManagementprovidestheBoardwithinformationonBoardmattersandissuesrequiringtheBoard’s




deliberations.AllDirectorsarealsoprovidedwithongoingreportsrelatingtooperationalandfinancialperformanceofthe

Group,aswellaskeydevelopments,toenablethemtoexerciseeffectiveoversightovertheGroup’sperformance.

Board meetings for each year are scheduled in advance to facilitate Directors’ individual administrative arrangements and

commitments.Boardpapersaregenerallycirculatedthreedaysinadvanceofeachmeetingandincludebackgroundexplanatory

informationfortheDirectorstoprepareforthemeetingandmakeinformeddecisions.Suchexplanatoryinformationincludes

minutesofthepreviousmeetingsaswellasoperationalandfinancialmattersrequiringtheBoard’sattentionorresolution.

The information provided may also be in the form of briefings to the Directors or formal presentations by Management staff

inattendanceatBoardmeetings,orbyexternalprofessionals.

The Board has separate and independent access to the Group’s Management, Company Secretaries, internal and external

auditors.AtleastoneoftheCompanySecretaries,and/ortheirauthoriseddesignate(s),attend(s)allmeetingsoftheBoard

andBoardCommitteesandprepare(s)minutesofBoardproceedings.TheCompanySecretariesalsoassisttheChairmanto

ensure that Board procedures are duly followed and regularly reviewed for compliance with relevant rules and regulations and

effectivefunctioningoftheBoard.

WheretheDirectorsrequireindependentprofessionaladviceinthecourseoftheirduties,suchadvicewouldbeprovidedat

theCompany’sexpense,subjecttoapprovalbytheBoard.

RemuneRation matteRs

PRoCeDuRes FoR DeVeLoPing RemuneRation PoLiCies

Principle 7 there should be a formal and transparent procedure for developing policy on

executive remuneration and for fixing the remuneration packages of individual directors.

no director should be involved in deciding his own remuneration.

Webelieve that executive remuneration shouldbe linked to thedevelopmentofmanagementdepth for continual talent

renewalandsustainabilityoftheGroup.TheRemunerationCommitteeoftheBoardcomprisesfourDirectors,allofwhomare

Non-ExecutiveDirectorsandamajorityofwhom,includingtheChairman,areindependent.ThemembersoftheRemuneration

CommitteeareDrChengMoChiMoses,MrLimHowTeck,MrColinStevensRusselandMr IpTakChuenEdmond.The

ChairmanoftheRemunerationCommitteeisDrChengMoChiMoses.

The Remuneration Committee, guided by its terms of reference which set out its responsibilities, assists the Board in ensuring

a formal and transparent procedure in:

(i) overseeingexecutivestaffcompensationanddevelopmentintheGroup;

(ii) determiningandreviewing,fromtimetotime,theremunerationpolicyoftheGroup;


(iii)reviewingandsettingthecompensationpoliciesandremunerationforExecutiveDirectorsandseniorexecutivesincluding

employees who are related to Directors or controlling shareholders of the Group;

(iv)reviewingtheremunerationofNon-ExecutiveDirectors;

(v) ensuring, as far aspossible, that the remunerationpackagesof theGroup takedue accountof the environment and

circumstances faced by the Group in the various markets and countries in which we operate; and

(vi)administeringtheGroup’sPerformanceBasedBonusScheme.

TheRemunerationCommitteereportstotheBoardandmeetsatleastonceayear.TheRemunerationCommitteealsohas

accesstoindependentexpertandprofessionaladviceonremunerationmatters,ifrequired.

LeVeL anD miX oF RemuneRation

Principle 8 the level of remuneration should be appropriate to attract, retain and motivate the directors

needed to run the company successfully but companies should avoid paying more than

is necessary for this purpose. a significant proportion of executive directors’ remuneration

should be structured so as to link rewards to corporate and individual performance.

In setting remuneration packages, the Group takes into consideration the remuneration and employment conditions within

the same industry and in comparable companies, as well as the Group’s relative performance and the performance of each

individual.

The Independent Non-Executive Directors receive Directors’ fees commensurate with their appointment, taking into account

factors such as their time spent and responsibilities. Directors’ fees are recommended by the Board for approval at the

Company’sAGM.

TheNon-ExecutiveDirectors(otherthantheIndependentNon-ExecutiveDirectors)donotreceiveDirectors’fees.TheGroup

CEOandExecutiveDirector,MrLimHweeChiangJohn,hasaserviceagreementwiththeCompanyforanindefinitetermand

is paid a base salary monthly in arrears and variable year-end bonus for the continuation of his employment, unless terminated

forcausebywrittennoticeof6monthsbetweentheparties.TheRemunerationCommitteereviewsthetermsandconditions

oftheserviceagreementaswellastheremunerationcomponentoftheGroupCEO.

In addition to base salary and a variable year-end bonus, designated executives of the Group participate in the Group’s

PerformanceBasedBonusSchemeattheabsolutediscretionoftheRemunerationCommittee(the“Participants”).Underthe

scheme, the Participants from each operating business unit of the Group may be entitled to a pool of incentive payments based

oncertainperformanceindicators.Thecalculationforthepoolofincentivepaymentsforeachofthebusinessunitsandthe

awardscheduleissetoutinthetablebelow.10%ofeachpoolofincentivepaymentsforeachbusinessunitoftheGroup

is deducted and contributed to the pool of incentive payments for the Participants from the corporate divisions of the Group

whichsupportthevariousbusinessunits.




(1) Before deduction for the contribution to the pool of incentive payments for the corporate divisions.

(2) Refers to vendors which are not members of CWT Limited and the Cheung Kong Group.

(3) 10% of each of these amounts will be deducted from the pool of incentive payments for each business unit and contributed to the pool of

incentive payments for the corporate divisions which support the various business units. The awards (if any) to employees from the

corporate division would be made half-yearly every financial year.

Any such pool of incentive payments or any part thereof may be allocated to Participants of the scheme engaged in the

relevantbusinessunitorcorporatedivisionattheabsolutediscretionoftheRemunerationCommittee.Suchallocationtakes

intoaccounteachParticipant’sseniority,lengthofserviceandhis/herperformanceandcontributions.Anyamountallocated

shallbepaidtotheParticipantintheformofcash.

Each Participant’s annual entitlement under the scheme for each business unit he/she is engaged in is subject to a maximum

capofhis/herannualbasesalary(whichexcludesanyannualwagesupplement,bonus,awardandotherfringebenefit)for

that financial year, save for entitlements under the private real estate fund management, which is subject to a maximum cap of

theequivalentoftheParticipant’sannualbasesalary(asdescribedabove)fromthecommencementofeachrelevantclosed-

endfundtotherealisationofsuchfund.

The scheme is targeted at key executives who are in the best position to drive the growth of our Group through superior

performance.Itisanincentiveplandesignedonthebasisthatitisimportanttoretainemployeeswhosecontributionsare

essential tothegrowthandprofitabilityofourGroup. TheschemeallowstheGrouptoattractpotentialemployeeswith

relevant skills and to motivate existing employees to optimise their performance, efficiency as well as maintain a high level of

contribution to the Group, and more importantly, to retain key executives of the Group whose contributions are essential to our

long-termgrowthandprofitability.Inaddition,theschemeisdesignedtoconveytheGroup’srecognitionandappreciationto

the executives who have contributed to the Group’s growth to further strengthen these individuals’ commitment, support and

loyaltytotheGroup’slong-termgrowthandprofitability.

The Remuneration Committee had also recommended to the Board an amount of S$490,000 as Directors’ fees for the

financialyearending31December2012,tobepaidquarterly inarrears. However,MrChiuKwokHungJustin,Mr IpTak

ChuenEdmondandMrLimHweeChiangJohnhaveinformedtheBoardoftheirintentiontowaivetheirentitlementtothe

Directors’feesofS$70,000each.TheDirectors’feesrecommendedforthefinancialyearending31December2012would

thereforebeS$280,000.ThisrecommendationhasbeenendorsedbytheBoardandwouldbetabledattheforthcoming

AGMforshareholders’approval.

NoDirectorisinvolvedindecidinghisownremuneration.

Reits Private Real estate FundsCorporate Finance advisory services

Pools of incentive payments for each business units(1)

10%ofacquisitionfeesforeach REIT manager paid on acquisitionofassetsfromthird party vendors(2),(3)

10%to20%ofperformance fees for each fund(3)

10%ofrevenuegeneratedby ARA Financial in excess of its annual approved budget(3)

Award Schedule Half-yearly Upon the realisation of the performance fee for each fund

Annually


DisCLosuRe on RemuneRation

Principle 9 each company should provide clear disclosure of its remuneration policy, level and mix of

remuneration, and the procedure for setting remuneration in the company’s annual report. it

should provide disclosure in relation to its remuneration policies to enable investors to understand

the link between remuneration paid to directors and key executives, and performance.

The remuneration of the Directors for the financial year ended 31 December 2011 in bands of S$250,000 is provided below:

A breakdown of the remuneration of the Directors for the financial year ended 31 December 2011 is set out below:

(1) Includes AWS and employer’s CPF. (2) Mr Chiu Kwok Hung Justin and Mr Ip Tak Chuen Edmond are full time employees of Cheung Kong Investment Company Limited, a substantial shareholder of the Company, and have offered to waive their directors’ fees for FY2011. (3) Key person and strategic advisory fees paid to Mr Chiu Kwok Hung Justin by ARA Fund Management (Asia Dragon) Limited for strategic advice and serving as a key person of the ARA Asia Dragon Fund.

WehavealsoprovidedaGroup-widecross-sectionofkeyexecutives’ remunerationbynumberofemployees inbandsof

S$250,000 in lieuofnaming the top5keyexecutiveswhoarealsonotDirectorsof theCompany. Webelieve that this

disclosure, which provides sufficient overview of the remuneration of the Group while maintaining confidentiality of staff

remunerationmatters,isinthebestinterestsoftheGroupgiventhecompetitiveconditionsinthefundmanagementindustry.

(1) Includes base salary, bonus and Peformance Based Bonus.

Remuneration Bands in Fy2011 number of Directors

S$500,000 and above 1

S$250,000 to below S$500,000 1

Below S$250,000 4

total 6

Remuneration Band/name of Director

salary(1)

(%)Bonus

(%)Directors’ Fees(2)

(%)others

(%)total (%)

(i) s$500,000 and above

MrLimHweeChiangJohn 71 28 - 1 100

(ii) s$250,000 to below s$500,000

MrChiuKwokHungJustin - - - 100(3) 100

(iii) Below s$250,000

Mr Lee Yock Suan - - 100 - 100

Mr Lim How Teck - - 100 - 100

Dr Cheng Mo Chi Moses - - 100 - 100

Mr Colin Stevens Russel - - 100 - 100

total Compensation Bands in Fy2011(1) number of employees

S$750,000 to below S$1,000,000 2

S$500,000 to below S$750,000 7

S$250,000 to below S$500,000 6

Below S$250,000 6

total 21




Save forMrLimHweeChiang Johnwho isa substantial shareholderof theCompanyandMsChiuYu Justinawho isan

immediate family member of the Chairman and Non-Executive Director, Mr Chiu Kwok Hung Justin, there are no other

Directorsorexecutiveswhoarerelatedtooneanotherortoanyofoursubstantialshareholders.TheGroupcurrentlydoes

nothaveanyshareoptionschemeorshareplan.Therearenoexistingorproposedserviceagreementsenteredintoortobe

entered into by the Directors or executives with the Company that provide for benefits upon termination of appointment or

employment.Wehavealsonotsetasidenoraccruedanyamountstoprovideforpension,retirementorsimilarbenefitsfor

theDirectorsandexecutivesoftheGroup.

aCCountaBiLity anD auDit

aCCountaBiLity

Principle 10 the Board should present a balanced and understandable assessment of the company’s

performance, position and prospects.

WeseektokeepstakeholdersupdatedontheGroup’sfinancialperformance,positionandprospectsthroughquarterlyand

annualfinancialreportsaswellastimelyannouncementsondevelopmentsintheGroup’sbusinesses.Quarterlyresultsare

released to shareholders within 45 days of the reporting period while the full year results are released to shareholders within

60daysof thefinancial yearend. Inpresenting thefinancial reports,weaim toprovideabalancedandunderstandable

assessmentoftheGroup’sperformance.

Management provides the Board with a continual flow of relevant information on the Group on a timely basis in order that the

Boardmayeffectivelydischargeitsduties.

auDit Committee

Principle 11 the Board should establish an audit Committee with written terms of reference which

clearly set out its authority and duties.

TheAuditCommitteeoftheBoardcomprisesfourDirectors,allofwhomareIndependentNon-ExecutiveDirectors.TheAudit

CommitteemembersareMrLeeYockSuan,MrLimHowTeck,DrChengMoChiMosesandMrColinStevensRussel.The

ChairmanoftheAuditCommitteeisMrLeeYockSuan.

The members of the Audit Committee bring with them invaluable experience and professional expertise in the financial and

legaldomains.TheBoardisoftheviewthatthemembersoftheAuditCommitteeareappropriatelyqualifiedtodischarge

theirresponsibilities.TheAuditCommitteeisguidedbyitstermsofreferenceendorsedbytheBoard,whichincludesreviewing:

(i) theannualauditplan,includingthenatureandscopeoftheinternalandexternalauditsbeforethecommencementof

these audits;

(ii) theadequacyoftheinternalauditprocess,effectivenessoftheGroup’sinternalcontrolsandtheinternalauditfunction;

(iii)theresultsofauditfindingsandManagement’sresponse;

(iv)theadequacyoftheGroup’saccountingandothercontrols;and

(v) interestedpersontransactions.


TheAuditCommitteemeetsatleastfourtimesayearandatleastquarterlywiththeinternalandexternalauditorswithout

thepresenceofManagement todiscuss theirfindingsas setout in their respective reports to theAuditCommittee. The

internal and external auditors may also request the Audit Committee to meet if they consider a meeting necessary. The

Audit Committee is also entitled to full access to Management and has full discretion to invite any Director, or members of

Managementtoattenditsmeetings.TheAuditCommitteeisrequiredtopassresolutionsonlyuponunanimousvote.Any

conflictingviewsaresubmittedtothefullBoardforitsfinaldecision.Anymemberwhohasaninterestinanymatterbeing

reviewedorconsideredisabstainedfromvotingonthematter.

TheAuditCommitteealsoreviewsanysignificantfinancialreportingissuesaswellasthequalityandreliabilityofinformation

inthequarterlyandannualfinancialstatementsandannouncementsoftheGroup.

The Audit Committee makes recommendations to the Board on the appointment/re-appointment of the external auditors,

taking into consideration the terms of engagement, scope, results of the audit, cost effectiveness and the independence and

objectivityoftheexternalauditors.TheAuditCommitteealsoreviewsthenon-auditservicesprovidedbytheexternalauditors

toensurethatprovisionofsuchserviceswillnotaffecttheindependenceoftheexternalauditors.

TheBoardhasadoptedaWhistleBlowingPolicywhereemployeesmay,inconfidence,reportpossibleimproprietiesdirectlyto

theAuditCommitteeinaresponsibleandeffectivemanner.AcopyoftheWhistleBlowingPolicyisavailabletoallemployeesof

theGroupincludingthelatestupdatedcontactdetailsoftheAuditCommittee.Theobjectiveforsucharrangementsistoensure

independentinvestigationofmattersraisedandtoallowappropriateactionstobetaken.Allsuchinvestigationsareundertaken

bytheGroupRiskManagement&InternalAuditDepartmentwhichreportsdirectlytotheChairmanoftheAuditCommittee.

For FY2011, the Audit Committee has:

(i) metupwiththeGroup’s internalandexternalauditorsonaquarterlybasis,withoutthepresenceofManagement,to

discusstheirfindingsassetoutintheirrespectivereportstotheAuditCommittee.Boththeinternalandexternalauditors

had confirmed that they had received full co-operation of Management and no restrictions were placed on the scope of audits;

(ii) reviewedallnon-auditservicesprovidedbytheexternalauditorsandissatisfiedthattheprovisionofsuchservicesdidnot

affect the independenceoftheexternalauditors.Theexternalauditorshavealsoaffirmedtheir independence intheir

report to the Audit Committee; and

(iii)reviewedarrangementsbywhichemployeesoftheGroupmay,inconfidence,raiseconcernsaboutpossibleimproprieties

relatingtoaccountingandfinancialcontrolsaswellasanyothermatterspursuanttotheWhistleBlowingPolicy.There

werenoreportsofwhistleblowingreceivedduringtheyear.

The Audit Committee, with the concurrence of the Board, had recommended the re-appointment of KPMG LLP as the external

auditorsattheforthcomingAGM.TheCompanyhascompliedwithRules712and715oftheListingManualinrelationtothe

externalauditors.Rule716oftheListingManualisnotapplicableasthesameauditingfirmisappointedfortheCompany

anditssubsidiaries.




inteRnaL ContRoLs

Principle 12 the Board should ensure that the management maintains a sound system of internal controls

to safeguard the shareholders’ investments and the company’s assets.

TheBoardrecognisestheimportanceofsoundinternalcontrolsandriskmanagementpracticestogoodcorporategovernance.

The Board ensures that Management maintains a robust system of internal controls and risk management designed to manage

risks and provide reasonable assurance against misstatement of loss, safeguarding of assets, maintenance of reliable and

properaccountingrecordsandcompliancewithrelevantlegislation.

RiskmanagementisanintegralpartoftheGroup’songoingoperations.Managementhasidentifiedthestrategic,operational,

hazard and financial risks faced by the various business units and set out the appropriate mitigating actions and monitoring

mechanisms to respond to changes within the Group and the external business environment, as summarised in the Group’s

RiskProfile.TheAuditCommitteereviewstheGroup’sriskmanagementframework,policiesandproceduresestablishedby

Management,withtheassistanceoftheInternalAuditors.

The Internal Auditors perform detailed work to assist the Audit Committee in the evaluation of the Group’s financial,

operational, compliance and information technology controls based on the internal audit plan approved by the Audit

Committee.Anymaterialnon-complianceorweaknessininternalcontrols,includingrecommendationsforimprovements,is

reportedtotheAuditCommittee.TheAuditCommitteealsoreviewstheeffectivenessofactionstakenbyManagementon

therecommendationsmadebytheInternalAuditorsinthisrespect.

In addition to the work performed by the Internal Auditors, the external auditors also perform tests of certain controls relevant

tothepreparationoftheGroup’sfinancialstatements.Theexternalauditorsreportanysignificantdeficienciesofsuchinternal

controlstotheAuditCommittee.

Duringtheyear,theAuditCommitteehasreviewedtheadequacy,effectivenessandintegrityoftheGroup’sinternalcontrol

and riskmanagement systems.Management alsoprovides aquarterly andannual assuranceon the stateof theGroup’s

internalcontrols.Basedontheworkperformedbyinternalandexternalauditors,theBoard,withtheconcurrenceoftheAudit

Committee,isoftheopinionthattheinternalcontrolsinplaceareadequateinaddressingtheGroup’sfinancial,operational

andcompliancerisksinitscurrentbusinessenvironment.

inteRnaL auDit

Principle 13 the company should establish an internal audit function that is independent of the activities

it audits.

TheGrouphasengagedDeloitte&ToucheEnterpriseRiskServicesPte.Ltd.toassisttheGroupRiskManagement&Internal

AuditDepartment(togetherreferredtoasthe“InternalAuditors”)inconductingafullreviewoftheGroup’sinternalcontrol

andriskmanagementsystems.Thisarrangementcombinesinternalexpertisewithexternalbestpracticesandenhancesthe

InternalAuditors’independenceandeffectiveness.

The Internal Auditors are independent of Management and the Head of Group Risk Management & Internal Audit Department

has a direct and primary reporting line to the Chairman of the Audit Committee, with administrative reporting to the Group

CEO.TheGroup’sinternalauditactivitiesareguidedbytheInternationalStandardsfortheProfessionalPracticeofInternal

AuditingsetbyTheInstituteofInternalAuditors.


During the year, the Internal Auditors conducted audit reviews based on the internal audit plan approved by the Audit

Committee.Uponcompletionofeachauditassignment,theInternalAuditorsreportedtheirfindingsandrecommendationsto

Managementwhowouldrespondontheactionstobetaken.TheInternalAuditorssubmitquarterlyinternalauditreportsto

theAuditCommitteeontheauditfindingsandactionstakenbyManagementonthefindings.

The Internal Auditors also carry out consulting services to advise Management on corporate governance matters such as risk

management framework, control self assessment in compliance, business continuity planning and updating of operations

manuals. This is coordinated through facilitatedworkshops andprojectswith active participationofManagement. These

consulting services help the Internal Auditors to establish collaborative and positive relationships with Management and

promotegoodpracticesincorporategovernance.

TheAuditCommitteeissatisfiedthattheGroup’sinternalauditfunctionisadequatelyresourcedandhasappropriatestanding

withintheGroup.

CommuniCation with shaRehoLDeRs

Principle 14 Companies should engage in regular, effective and fair communication with shareholders.

WestrivefortimelinessandconsistencyinourdisclosurestostakeholdersanditistheGroup’spolicytokeepallstakeholders

informedofmaterialdevelopmentsthatwouldhaveanimpactontheGroupthroughannouncementsviaSGXNETandonthe

Group’swebsite.SuchannouncementsarecommunicatedonanimmediatebasisasrequiredundertheListingManualofthe

SGX-ST(the“ListingManual”),orassoonaspossiblewhereimmediatedisclosureisnotpracticable.

Regularbriefingsareconductedforanalystsandmedia,generallycoincidingwiththereleaseoftheGroup’squarterlyandfull

yearfinancialresults.ThematerialsusedinthesebriefingsarealsodisseminatedsimultaneouslyviaSGXNETintheinterestof

transparencyandismadepubliclyavailableonatimelyandnon-selectivebasis.

Management also actively engages institutional investors through face-to-face meetings, conference calls, non-deal road

showsandbyparticipatingininvestmentconferences.Wealsostrivetokeepretailinvestorsupdatedondevelopmentsinthe

Groupthroughtimelyannouncements,theGroup’swebsiteandthemedia.

Webelieveinregular,effectiveandfaircommunicationwithourshareholdersandarecommittedtohearingtheirviewsand

addressingtheirconcernswherepossible.Shareholderscanavailthemselvesofatelephoneoremailfeedbacklinethatgoes

directlytotheGroup’sManagementteam.

Principle 15 Companies should encourage greater shareholder participation at agms, and allow

shareholders the opportunity to communicate their views on various matters affecting

the company.

Shareholders are accorded the opportunity to raise relevant questions and to communicate their views at shareholders’

meetings.Votinginabsentiasuchasbymail,emailorfaxhasnotbeenimplementedduetoconcernsrelatingtoissuesof

informationcontrolandsecurity.




If any shareholder is unable to attend the shareholders’ meeting, he is allowed to appoint up to two proxies to vote on his

behalfatthemeetingthroughproxyformswhicharesenttogetherwiththeAnnualReportsorCirculars(asthecasemay

be).Thedulycompletedandsignedproxyformsisrequiredtobesubmitted48hoursbeforetheshareholders’meetingat

theCompany’sShareTransferAgent’soffice.Ateachshareholders’meeting,eachdistinctissueisproposedasaseparate

resolution.

The Chairpersons of the Audit, Nominating and Remuneration Committees attend the AGM of the Company to address any

queriesrelatingtotheworkofthecommittees.TheexternalauditorsalsoattendtheAGMtoaddressshareholders’queries

abouttheconductoftheauditandthepreparationandcontentoftheauditors’report.

WeviewtheAGMastheprincipalforumfordialoguewithshareholders,inparticularretailshareholders.TheCompanyhas

alsodesignatedcontactpersonswhoareavailabletoaddressqueriesfromstakeholdersfromtimetotime.

DeaLings in seCuRities

The Group has adopted an internal code which prohibits Directors of the Company and executives of the Group from dealing

in the Company’s shares as well as in the units of public-listed REITs managed by the Group, while in possession of unpublished

materialornon-publicpricesensitiveinformationinrelationtosuchsecuritiesandduringthe“black-outperiod”inrespective

jurisdictions. Inthecaseof listedentities inSingapore,the“black-out”periodisdefinedasonemonthbeforethedateof

announcementofquarterlyandfullyearresultsand(whereapplicable)anypropertyvaluations. InthecaseofaREITthat

islistedinHongKong,the“black-out”periodisdefinedas60daysimmediatelyprecedingthepublicationdateofthefull

yearresultsand30daysimmediatelyprecedingthepublicationdateofthehalf-yearresultsandquarterlyresults(ifany)(or

ifshorter,theperiodfromtheendoftherelevantfinancialyearorhalf-year/quarterperioduptothepublicationdateof

theresults).InthecaseofaREITthatisconcurrentlylistedinSingaporeandHongKong,bothpreceding“black-out”periods

shallbeapplied(andtakingtheviewofthemorerestrictiveorstringentregulationshouldtherebeanyconflictbetweenboth

periods).TheDirectorsoftheCompanyandexecutivesoftheGrouparealsodiscouragedfromdealing intheCompany’s

sharesandunitsofpublic-listedREITsmanagedbytheGrouponshort-termconsiderations.

TheCompanyhascompliedwithRule1207(19)oftheListingManualoftheSGX-ST.

inteResteD PeRson tRansaCtions

Disclosureofinterestedpersontransactions(“IPTs”)issetoutinpage131ofthisReport.AllIPTsaresubjecttoreviewbythe

AuditCommitteeatitsquarterlymeetingstoensurethatsuchtransactionsareconductedonanarm’slengthbasisandnot

prejudicialtotheinterestsoftheshareholders.ItwasnotedthattheIPTswerewithinthethresholdlimitssetoutunderChapter

9oftheListingManualofSGX-STandnoannouncementorshareholders’approvalwas,therefore,required.Thetransactions

had been conducted on an arm’s length basis and the procedures described in the Company’s Letter to Shareholders and

Depositorsdated12April2011hadbeencompliedwith.InadditiontotherequirementssetoutintheListingManual,the

BoardhasalsoadoptedapolicyofrequiringDirectorstodeclaretheirconflictsofinterest,ifanyandabstainfromvotingif

theyaresoconflicted.


Board meetings

audit Committee

nominating Committee

Remuneration Committee

name of Director

appointment attendance/ number of meetings

held


held


held


held

Mr Chiu Kwok Hung Justin

Chairman and Non-Executive Director

4/4 - N/A - N/A - N/A

Mr Lim HweeChiangJohn

Group CEO and Executive Director

4/4 - N/A - N/A - N/A

Mr Ip Tak Chuen Edmond

Non-Executive Director

4/4 - N/A - N/A Member 4/4

Mr Lee Yock Suan

Independent Non-Executive Director

4/4 Chairman 4/4 - N/A - N/A

Mr Lim How Teck


4/4 Member 4/4 Chairman 1/1 Member 4/4

Dr Cheng Mo Chi Moses


4/4 Member 3/4 Member 1/1 Chairman 4/4

Mr Colin Stevens Russel


4/4 Member 4/4 Member 1/1 Member 4/4




Dates oF initiaL aPPointment oF DiReCtoRs anD DiReCtoRshiPs in ListeD ComPanies

name of Director appointment Date of initialappointment/ Last Re-election

Directorships in Listed Companies

Mr Chiu Kwok HungJustin

Chairman andNon-Executive Director

23July2002/28 April 2011

ARA Asset Management Limited

CheungKong(Holdings)Limited

Mr Lim HweeChiangJohn

Group CEO and Executive Director

23July2002/29 April 2009


APN Property Group Limited

Teckwah Industrial Corporation Limited


Non-Executive Director 17 September 2007/26 April 2010


AVICInternationalHolding(HK)Limited(formerlyknownasCATICInternationalHoldingsLimited)

CheungKong(Holdings)Limited

Cheung Kong Infrastructure Holdings Limited

CKLifeSciencesInt’l.,(Holdings)Inc.

Excel Technology International Holdings Limited

Shougang Concord International Enterprises Company Limited

TOM Group Limited

Real Nutriceutical Group Limited (formerlyknownasRuinianInternationalLimited)

Mr Lee Yock Suan IndependentNon-Executive Director

17 September 2007/26 April 2010


Mr Lim How Teck IndependentNon-Executive Director



MewahInternationalInc.

Swissco Holdings Limited

Dr Cheng MoChi Moses

IndependentNon-Executive Director



China COSCO Holdings Company Limited

China Mobile Limited

China Resources Enterprise Limited

CityTelecom(H.K.)Limited

Guangdong Investment Limited

Hong Kong Exchanges and Clearing Limited

K.WahInternationalHoldingsLimited

Kader Holdings Company Limited

Liu Chong Hing Investment Limited

Tian An China Investments Company Limited

Towngas China Company Limited

Mr ColinStevens Russel

IndependentNon-Executive Director



Cheung Kong Infrastructure Holdings Limited

CKLifeSciencesInt’l.,(Holdings)Inc.

HuskyEnergyInc.


DIRECTORS’ REPORT

WearepleasedtosubmitthisannualreporttothemembersoftheCompanytogetherwiththeauditedfinancialstatements

forthefinancialyearended31December2011.

DiReCtoRs

The directors in office at the date of this report are as follows:

MrChiuKwokHungJustin(Chairman)

MrLimHweeChiangJohn(GroupCEO)


Mr Lee Yock Suan

Mr Lim How Teck

Dr Cheng Mo Chi Moses

Mr Colin Stevens Russel

DiReCtoRs’ inteRests

According to the Register of Directors’ Shareholdings kept by the Company, particulars of interests of directors who held office

attheendofthefinancialyear(includingthoseheldbytheirspousesandinfantchildren)inshares,debentures,warrantsand

shareoptionsintheCompanyandinrelatedcorporations(otherthanwholly-ownedsubsidiaries)areasfollows:

MrLimHweeChiangJohn,whobyvirtueofhisinterestintheCompany,isdeemedtohaveinterestsinthesubsidiariesofARA

AssetManagementLimited,atthebeginningandattheendofthefinancialyear.

Except as disclosed in this report, no director who held office at the end of the financial year had interests in shares, debentures,

warrantsorshareoptionsoftheCompany,orofrelatedcorporations,eitheratthebeginningorattheendofthefinancialyear.

Betweentheendofthefinancialyearand21January2012,exceptforMrLimHweeChiangJohn’sinterestintheCompany

which decreased from 5,971,660 shares to 4,651,660 shares, there were no changes in any of the above mentioned interests

intheCompany.

name of director and corporation in which interests are held

holdings registered in name of director or nominee

holdings in which director is deemed to have an interest

at 1.1.2011 at 31.12.2011 at 1.1.2011 at 31.12.2011

aRa asset management Limited (number of ordinary shares of $0.002 each)

MrLimHweeChiangJohn 1,653,600 5,971,660 255,570,400 281,127,440

Mr Lee Yock Suan 60,000 66,000 - -

Mr Lim How Teck 540,000 594,000 - -

Mr Colin Stevens Russel 18,000 19,800 - -


DIRECTORS’ REPORT

DiReCtoRs’ inteRests (cont’d)

Neither at the end of, nor at any time during the financial year, was the Company a party to any arrangement whose objects

are,oroneofwhoseobjectsis,toenablethedirectorsoftheCompanytoacquirebenefitsbymeansoftheacquisitionof

sharesinordebenturesoftheCompanyoranyotherbodycorporate.

Except for salaries, bonuses and fees and those benefits that are disclosed in this report and in Note 26 to the financial

statements, since the end of the last financial year, no director has received or become entitled to receive, a benefit by reason

of a contract made by the Company or a related corporation with the director, or with a firm of which he is a member, or with

acompanyinwhichhehasasubstantialfinancialinterest.

shaRe oPtions

During the financial year, there were:

(i) nooptionsgrantedbytheCompanyoritssubsidiariestoanypersontotakeupunissuedsharesintheCompanyorits

subsidiaries; and

(ii) nosharesissuedbyvirtueofanyexerciseofoptiontotakeupunissuedsharesoftheCompanyoritssubsidiaries.

Asattheendofthefinancialyear,therewerenounissuedsharesoftheCompanyoritssubsidiariesunderoption.

auDit Committee

The members of the Audit Committee during the year and at the date of this report are:

• MrLeeYockSuan(Chairman),IndependentNon-ExecutiveDirector

• MrLimHowTeck,IndependentNon-ExecutiveDirector

• DrChengMoChiMoses,IndependentNon-ExecutiveDirector

• MrColinStevensRussel,IndependentNon-ExecutiveDirector

TheAuditCommitteeperformsthefunctionsspecifiedinSection201BoftheSingaporeCompanies’Act,Chapter50,theSGX

ListingManualandtheCodeofCorporateGovernance.

TheAuditCommitteehasheldfourmeetingsduringthefinancialyear.Inperformingitsfunctions,theAuditCommitteemet

with the Company’s external and internal auditors to review their audit plans, discuss the scope of their work, the results of

theirexaminationandevaluationoftheCompany’sinternalaccountingcontrolsystem.


DIRECTORS’ REPORT

auDit Committee (cont’d)

The Audit Committee also reviewed the following:

• assistanceprovidedbytheCompany’sofficerstotheinternalandexternalauditors;

• quarterlyfinancialinformationandannualfinancialstatementsoftheGroupandtheCompanypriortotheirsubmission

to the directors of the Company for adoption; and

• interestedpersontransactions(asdefinedinChapter9oftheSGXListingManual).

TheAuditCommitteehasfullaccesstomanagementandisgiventheresourcesrequiredforittodischargeitsfunctions.Ithas

fullauthorityandthediscretiontoinviteanydirectororexecutiveofficertoattenditsmeetings.TheAuditCommitteealso

recommendstheappointmentoftheexternalauditorsandreviewsthelevelofauditandnon-auditfees.

The Audit Committee is satisfied with the independence and objectivity of the external auditors and has recommended to

the Board of Directors that the auditors, KPMG LLP, be nominated for re-appointment as auditors at the forthcoming Annual

GeneralMeetingoftheCompany.

In appointing our auditors for the Company, subsidiaries and significant associated companies, we have complied with Rules

712and715oftheSGXListingManual.

Theauditors,KPMGLLP,haveindicatedtheirwillingnesstoacceptre-appointment.

On behalf of the Board of Directors

mR Chiu KwoK hung Justin

Director

mR Lim hwee Chiang John

Director

22 February 2012


STATEMENT BY DIRECTORS

In our opinion:

(a) thefinancialstatementssetoutonpages80to130aredrawnupsoastogiveatrueandfairviewofthestateof

affairsoftheGroupandoftheCompanyasat31December2011andoftheresults,changesinequityandcashflows

of the Group for the year ended on that date in accordance with the Singapore Financial Reporting Standards; and

(b) atthedateofthisstatement,therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsas

andwhentheyfalldue.

TheBoardofDirectorshas,onthedateofthisstatement,authorisedthesefinancialstatementsforissue.

On behalf of the Board of Directors

mR Chiu KwoK hung Justin

Director

mR Lim hwee Chiang John

Director

22 February 2012


INDEPENDENT AUDITORS’ REPORT

RePoRt on the FinanCiaL statements

WehaveauditedtheaccompanyingfinancialstatementsofARAAssetManagementLimited(the“Company”)anditssubsidiaries

(the“Group”),whichcomprisethestatementsoffinancialpositionoftheGroupandtheCompanyasat31December2011,

theincomestatementandstatementofcomprehensiveincome,statementofchangesinequityandstatementofcashflows

of the Group for the year then ended, and a summary of significant accounting policies and other explanatory information, as

setoutonpages80to130.

management’s ResPonsiBiLity FoR the FinanCiaL statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Singapore

Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation

offinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

auDitoRs’ ResPonsiBiLity

Our responsibility is toexpressanopinionon thesefinancial statementsbasedonouraudit. Weconductedouraudit in

accordancewithSingaporeStandardsonAuditing.Thosestandardsrequirethatwecomplywithethicalrequirementsand

plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material

misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterial

misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor

considers internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to

design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesused

and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the

financialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Members of the Company



INDEPENDENT AUDITORS’ REPORT

oPinion

In our opinion, the consolidated financial statements of the Group and the statement of financial position of the Company

present fairly, in all material respects, the financial position of the Group and of the Company as at 31 December 2011, and

itsfinancialperformance,changesinequityandcashflowsfortheyearthenendedinaccordancewithSingaporeFinancial

ReportingStandards.

KPmg LLP

Public Accountants and

Certified Public Accountants

singapore

22 February 2012


note

group Company

2011 2010 2011 2010

$’000 $’000 $’000 $’000

assets

Intangible asset 21 - 798 - -

Plantandequipment 4 1,360 1,498 - -

Tenancy deposits 7 502 495 - -

Subsidiaries 27 - - 87,690 95,284

Associates 5 3,100 1,060 - -

Financial assets 6 96,920 133,658 - -

total non-current assets 101,882 137,509 87,690 95,284

Financial assets 6 24,764 15,418 - -

Trade and other receivables 7 30,616 26,372 5,304 3,369

Cashandcashequivalents 8 57,291 42,327 31,091 10,240

total current assets 112,671 84,117 36,395 13,609

total assets 214,553 221,626 124,085 108,893

equity

Share capital 1,537 1,397 1,537 1,397

Reserves 71,791 88,978 75,012 75,152

Accumulated profits 115,574 82,505 46,110 29,569

equity attributable to equity holders of the Company 188,902 172,880 122,659 106,118

non-controlling interests 659 638 - -

total equity 9 189,561 173,518 122,659 106,118

Liabilities

Loan and borrowings 10 268 387 - -

Deferred tax liabilities 12 117 142 - -

total non-current liabilities 385 529 - -

Trade and other payables 13 17,343 20,200 1,426 2,773

Derivative liabilities 14 717 - - -

Loans and borrowings 10 120 18,971 - -

Current tax payable 6,427 8,408 - 2

total current liabilities 24,607 47,579 1,426 2,775

total liabilities 24,992 48,108 1,426 2,775

total equity and liabilities 214,553 221,626 124,085 108,893

STATEMENTS OF FINANCIAL POSITIONAs at 31 December 2011

Theaccompanyingnotesformanintegralpartofthesefinancialstatements.


CONSOLIDATED INCOME STATEMENTYear ended 31 December 2011


group

2011 2010

note $’000 $’000

Revenue 15 112,148 102,129

Finance income 17 10,566 10,230

Other income 47 152

122,761 112,511

Administrative expenses (33,789) (30,819)

Operating lease expenses (2,239) (2,537)

Other expenses (6,147) (5,211)

Results from operating activities 80,586 73,944

Finance costs 17 (7,048) (871)

73,538 73,073

Share of profit of associates, net of tax 2,794 456

Profit before tax 76,332 73,529

Tax expense 18 (6,812) (9,319)

Profit for the year 16 69,520 64,210

Profit attributable to:

EquityholdersoftheCompany 68,202 63,812

Non-controlling interests 1,318 398

Profit for the year 69,520 64,210

earnings per share

Basicearningspershare(cents) 19 8.88 8.31

Dilutedearningspershare(cents) 19 8.88 8.31


CONSOLIDATED STATEMENT OFCOMPREHENSIVE INCOME Year ended 31 December 2011


group

2011 2010

$’000 $’000


other comprehensive income

Translation differences relating to financial statements of foreign subsidiaries 163 (2,649)

Available-for-sale financial assets in fair value reserve (16,374) 14,363

Effective portion of changes in fair value of cash flow hedge (836) (28)

other comprehensive income for the year, net of tax (17,047) 11,686

total comprehensive income for the year 52,473 75,896

total comprehensive income attributable to:

EquityholdersoftheCompany 51,155 75,498

Non-controlling interests 1,318 398

total comprehensive income for the year 52,473 75,896

Therearenoincometaxattributabletotheitemsinothercomprehensiveincome.


CONSOLIDATED STATEMENT OFCOMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OFCHANGES IN EQUITY


Year ended 31 December 2011

attributable to equity holders of the Company

Reserves

sharecapital

sharepremium

Foreign currency

translationreserve

Fair value

reservehedgingreserve

accumulatedprofits total

non-controlling interests

totalequity

group note $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

At1January2010 1,164 75,413 (773) 2,766 147 49,310 128,027 (371) 127,656

total comprehensive income for the year

Profit for the year - - - - - 63,812 63,812 398 64,210

Total other comprehensive income 9 - - (2,649) 14,363 (28) - 11,686 - 11,686

total comprehensive income for the year - - (2,649) 14,363 (28) 63,812 75,498 398 75,896

transactions with owners, recorded directly in equity

Contributions by and distributions to owners

Issue of bonus shares 9 233 (233) - - - - - - -

Expenses on issue of bonus shares 9 - (28) - - - - (28) - (28)

Dividendstoequityholders 9 - - - - - (30,617) (30,617) - (30,617)

Waiverofshareholders’ loan - - - - - - - 211 211

total contributions by and distributions to owners 233 (261) - - - (30,617) (30,645) 211 (30,434)

Changes in ownership interests in subsidiary without a change

in control

Contribution from non-controlling interest - - - - - - - 400 400

Total changes in ownership interest in subsidiaries - - - - - - - 400 400

Total transactions with owners 233 (261) - - - (30,617) (30,645) 611 (30,034)

At 31 December 2010 1,397 75,152 (3,422) 17,129 119 82,505 172,880 638 173,518


attributable to equity holders of the Company

Reserves

sharecapital

sharepremium

Foreign currency

translationreserve

Fair value

reservehedgingreserve

accumulatedprofits total

non-controlling interests

totalequity

group note $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

At1January2011 1,397 75,152 (3,422) 17,129 119 82,505 172,880 638 173,518

total comprehensive income for the year

Profit for the year - - - - - 68,202 68,202 1,318 69,520

Total other comprehensive income 9 - - 163 (16,374) (836) - (17,047) - (17,047)

total comprehensive income for the year - - 163 (16,374) (836) 68,202 51,155 1,318 52,473

transactions with owners, recorded directly in equity

Contributions by and distributions to owners

Issue of bonus shares 9 140 (140) - - - - - - -

Waiverofshareholders’loan - - - - - - - 231 231

Dividendstoequityholders 9 - - - - - (35,133) (35,133) (1,528) (36,661)

Total transactions with owners 140 (140) - - - (35,133) (35,133) (1,297) (36,430)

At 31 December 2011 1,537 75,012 (3,259) 755 (717) 115,574 188,902 659 189,561


CONSOLIDATED STATEMENT OFCHANGES IN EQUITYYear ended 31 December 2011



CONSOLIDATED STATEMENT OFCHANGES IN EQUITY

CONSOLIDATED STATEMENT OFCASH FLOWSYear ended 31 December 2011

group

2011 2010

note $’000 $’000

Cash flows from operating activities


Adjustments for:

Amortisation of intangible asset 21 798 652

Depreciation 578 466

Share of profit of associates (2,794) (456)

Interest income (831) (718)

Interest expense 428 871

Distribution income (9,644) (7,599)

Gain on disposal of subsidiary 22 - (203)

Impairment loss on available-for-sale financial asset 541 -

Loss/(gain)onfairvaluationofheld-for-tradingsecurities 6,079 (1,710)

Loss/(gain)ondisposalofplantandequipment 1 (105)

Management fees received/receivable in units of real estate investment trusts (44,811) (51,324)

Tax expense 6,812 9,319

26,677 13,403

Change in trade and other receivables (2,271) 26

Change in trade and other payables (2,857) 2,440

Cash generated from operating activities 21,549 15,869

Tax paid (8,818) (5,873)

Proceeds from sale of units in real estate investment trusts 27,033 38,472

Distribution income received 9,644 7,599

net cash from operating activities 49,408 56,067

Cash flows from investing activities

Dividends received from associates 828 -

Proceeds from interest bearing loan to a private fund 8,000 -

Proceeds from disposal of available-for-sale securities 12,390 -

Interest received 831 718

Investment in associate (4) -

Disposal of subsidiary, net of cash disposed 22 - 24

Purchaseofplantandequipment (444) (1,018)

Proceedsfromdisposalofplantandequipment 3 246

Redemption/(purchase)ofunquotedavailable-for-salesecurities 12 (12,343)

Purchaseofquotedavailable-for-salesecurities - (16,334)

Contribution from non-controlling interest - 400

net cash from/(used in) investing activities 21,616 (28,307)



CONSOLIDATED STATEMENT OFCASH FLOWSYear ended 31 December 2011

group

2011 2010

note $’000 $’000

Cash flows from financing activities

Repayment of borrowings (18,851) -

Dividends paid (36,661) (30,617)

Interest paid (428) (871)

Net(payment)/proceedsoffinanceleaseliabilities (119) 319

net cash used in financing activities (56,059) (31,169)

net increase/(decrease) in cash and cash equivalents 14,965 (3,409)

Cashandcashequivalentsat1January 42,327 46,148

Effect of exchange rate fluctuations on cash held (1) (412)

Cash and cash equivalents at 31 December 8 57,291 42,327


CONSOLIDATED STATEMENT OFCASH FLOWS

NOTES TO THE FINANCIAL STATEMENTS

Thesenotesformanintegralpartofthefinancialstatements.

ThefinancialstatementswereauthorisedforissuebytheBoardofDirectorson22February2012.

1. DomiCiLe anD aCtiVities

ARAAssetManagementLimited(the“Company”)is incorporatedasanexemptedcompanywithlimitedliability in

BermudaandhasitsregisteredofficeatClarendonHouse,2ChurchStreet,HamiltonHM11,Bermuda.Theprincipal

placeofbusinessisat6TemasekBoulevard,#16-02SuntecTower4,Singapore038986.TheCompanywasadmitted

to the official list of the main board of the Singapore Exchange Securities Trading Limited (the “SGX-ST”)

on2November2007.

TheprincipalactivityoftheCompanyisthatofinvestmentholding.

The principal activities of the subsidiaries are those relating to the provision of real estate fund management services,

including acting as the manager for public-listed real estate investment trusts and private real estate funds, as well as

theprovisionofrealestatemanagementservicesandcorporatefinanceadvisoryservices.

The financial statements of the Company as at and for the financial year ended 31 December 2011 comprise the

Company and its subsidiaries (together referred to as the “Group” and individually as “Group entities”) and the

Group’sinterestinassociates.

2. Basis oF PRePaRation

(a) statement of compliance

ThefinancialstatementshavebeenpreparedinaccordancewiththeSingaporeFinancialReportingStandards(“FRS”).

(b) Basis of measurement

Thefinancialstatementshavebeenpreparedonthehistoricalcostbasisexceptasotherwisedescribedbelow.

(c) Functional and presentation currency

These financial statements are presented in Singapore dollars, which is the Company’s functional currency. All

financial information presented in Singapore dollars have been rounded to the nearest thousand, unless

otherwisestated.



2. Basis oF PRePaRation (cont’d)

(d) use of estimates and judgements

The preparation of the financial statements in conformity with FRSs requires management to make judgements,

estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,

liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are

recognisedintheperiodinwhichtheestimatesarerevisedandinanyfutureperiodsaffected.

Information about critical judgements in applying accounting policies that have the most significant effect on the

amounts recognised in the financial statements is included in Notes 6, 11, 14 and 23 – valuation and measurement

offinancialassetsandfinancialliabilities.

(e) Changes in accounting policies

Identification of related party relationships and related party disclosures

From1January2011,theGrouphasappliedtherevisedFRS24Related Party Disclosures (2010)to identifyparties

that are related to the Group and to determine the disclosures to be made on transactions and outstanding balances,

including commitments, between the Group and its related parties. FRS 24 (2010) improved the definition of a

related party in order to eliminate inconsistencies and ensure symmetrical identification of relationships between

twoparties.

The adoption of FRS 24 (2010) has not resulted in additional parties being identified as related to the Group.

Transactions and outstanding balances, including commitments, with these related parties for the current and

comparativeyearshavebeendisclosedaccordinglyinNotes7,13and26tothefinancialstatements.Theadoption

ofFRS24 (2010)affectsonly thedisclosuresmade in thefinancial statements. There isnofinancialeffectonthe

resultsandfinancialpositionoftheGroupforthecurrentandpreviousfinancialyears.Accordingly,theadoptionof

FRS24(2010)hasnoimpactonearningspershare.

3. signiFiCant aCCounting PoLiCies

The accounting policies set out below have been applied consistently to all periods presented in these financial

statements,andhavebeenappliedconsistentlybyGroupentities,exceptasexplainedinNote2(e),whichaddresses

changesinaccountingpolicies.


NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

3. signiFiCant aCCounting PoLiCies (cont’d)

(a) Basis of consolidation

(i) Business combinations

Businesscombinationsareaccountedforusingtheacquisitionmethodasattheacquisitiondate,whichisthedate

onwhichcontrolistransferredtotheGroup.Controlisthepowertogovernthefinancialandoperatingpoliciesof

anentitysoastoobtainbenefitsfromitsactivities.Inassessingcontrol,theGrouptakesintoconsiderationpotential

votingrightsthatarecurrentlyexercisable.

Theconsiderationtransferreddoesnotincludeamountsrelatedtothesettlementofpre-existingrelationships.Such

amountsaregenerallyrecognisedinprofitorloss.

Costsrelatedtotheacquisition,otherthanthoseassociatedwiththeissueofdebtorequitysecurities,thattheGroup

incursinconnectionwithabusinesscombinationareexpensedasincurred.

Anycontingentconsiderationpayableisrecognisedatfairvalueattheacquisitiondate.Ifthecontingentconsideration

is classifiedas equity, it is not remeasuredand settlement is accounted forwithin equity. Otherwise, subsequent

changestothefairvalueofthecontingentconsiderationarerecognisedinprofitorloss.

For non-controlling interests that are present ownership interests and entitle their holders to a proportionate share

oftheacquiree’snetassetsintheeventofliquidation,theGroupelectsonatransaction-by-transactionbasiswhether

to measure them at fair value, or at the non-controlling interests’ proportionate share of the recognised amounts of

the acquiree’s identifiable net assets, at the acquisition date. All other non-controlling interests are measured at

acquisition-datefairvalueor,whenapplicable,onthebasisspecifiedinanotherstandard.

(ii) Subsidiaries

Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are included in the

consolidatedfinancialstatementsfromthedatethatcontrolcommencesuntilthedatethatcontrolceases.

The accounting policies of subsidiaries have been changed where necessary to align them with the policies adopted

bytheGroup.Lossesapplicabletothenon-controlling interests inasubsidiaryareallocatedtothenon-controlling

interestsevenifdoingsocausesthenon-controllingintereststohaveadeficitbalance.

(iii) Acquisitions from entities under common control

Business combinations arising from transfers of interests in entities that are under the control of the shareholder

thatcontrolstheGroupareaccountedforasiftheacquisitionhadoccurredatthebeginningoftheearliestcomparative

yearpresentedor,iflater,atthedatethatcommoncontrolwasestablished;forthispurposecomparativesarerestated.

The assets and liabilities acquired are recognised at the carrying amounts recognised previously in the Group

controllingshareholder’sconsolidatedfinancial statements. Thecomponentsofequityof theacquiredentitiesare

addedtothesamecomponentswithinGroupequityandanygain/lossarisingisrecogniseddirectlyinequity.




(a) Basis of consolidation (cont’d)

(iv) Loss of control

Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling

interestsandtheothercomponentsofequityrelatedtothesubsidiary.Anysurplusordeficitarisingonthelossof

controlisrecognisedinprofitorloss.IftheGroupretainsanyinterestintheprevioussubsidiary,thensuchinterest

ismeasuredat fair valueat thedate thatcontrol is lost. Subsequently, it isaccounted forasanequity-accounted

investeeorasanavailable-for-salefinancialassetdependingonthelevelofinfluenceretained.

(v) Investments in associates (equity-accounted investees)

Associates are companies in which the Group has significant influence, but not control, over the financial and

operatingpoliciesof theseentities. Significant influence ispresumed toexistwhen theGroupholdsbetween20%

and50%ofthevotingpowerofanotherentity.Investmentsinassociatesareaccountedforusingtheequitymethod

(equity-accountedinvestees)andarerecognisedinitiallyatcost.Thecostoftheinvestmentsincludestransactioncosts.

The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income

of the equity-accounted investees, after adjustments to align the accounting policies of the equity-accounted

investees with those of the Group, from the date that significant influence commences until the date the significant

influenceceases.

WhentheGroup’sshareof lossesexceedsits interest inanequity-accountedinvestee,thecarryingamountofthat

interest, including any long-term investments, is reduced to zero, and the recognition of further losses is discontinued

excepttotheextentthattheGrouphasanobligationorhasmadepaymentsonbehalfoftheinvestee.

(vi) Acquisition of non-controlling interests

Acquisitions of non-controlling interests are accounted for as transactions with owners in their capacity as owners

and therefore the carrying amounts of assets and liabilities are not changed and goodwill is not recognised as a result

of such transactions. Theadjustments tonon-controlling interestsarebasedonaproportionateamountof thenet

assets of the subsidiary. Any difference between the adjustment to non-controlling interests and the fair value of

considerationpaidisrecogniseddirectlyinequityandpresentedaspartofequityattributabletoownersoftheCompany.

(vii) Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group transactions,

are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with

associates are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised

lossesareeliminatedinthesamewayasunrealisedgains,butonlytotheextentthatthereisnoevidenceofimpairment.




(a) Basis of consolidation (cont’d)

(viii) Accounting for subsidiaries and associates

Investments in subsidiaries and associates are stated in the Company’s statement of financial position at cost less

accumulatedimpairmentlosses.

(b) Foreign currencies

(i) Foreign currency transactions

Transactions in foreign currencies are translated to the respective functional currencies of Group entities at the

exchange ratesat thedatesof the transactions. Monetaryassetsand liabilitiesdenominated in foreigncurrencies

attheendofthereportingdateareretranslatedtothefunctionalcurrencyattheexchangerateatthatdate.The

foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency

at the beginning of the year, adjusted for effective interest and payments during the year, and the amortised cost in

foreigncurrencytranslatedattheexchangerateattheendoftheyear.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated

tothefunctionalcurrencyattheexchangerateatthedatethatthefairvaluewasdetermined.Non-monetaryitems

in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the

dateofthetransaction.Foreigncurrencydifferencesarisingonretranslationarerecognisedinprofitorloss,except

for differences arising on the retranslation of available-for-sale equity instruments, or qualifying cash flow

hedges,whicharerecognisedinothercomprehensiveincome.

(ii) Foreign operations

The assets and liabilities of foreign operations are translated to Singapore dollars at exchange rates at the end of the

reporting period. The income and expenses of foreign operations are translated to Singapore dollars at exchange

ratesatthedatesofthetransactions.

Foreign currency differences are recognised in other comprehensive income, and presented in the foreign currency

translationreserve(“translationreserve”)inequity.However,iftheoperationisanonwholly-ownedsubsidiary,then

the relevant proportionate share of the translation difference is allocated to the non-controlling interests. When

a foreign operation is disposed of such that control or significant influence is lost, the cumulative amount in the

translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on

disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation

whileretainingcontrol,therelevantproportionofthecumulativeamountisreattributedtonon-controllinginterests.

When the Group disposes of only part of its investment in an associate that includes a foreign operation while

retainingsignificantinfluence,therelevantproportionofthecumulativeamountisreclassifiedtoprofitorloss.




(b) Foreign currencies (cont’d)

(ii) Foreign operations (cont’d)

Whenthesettlementofamonetary itemreceivable fromorpayable toaforeignoperation isneitherplannednor

likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered

toformpartofanetinvestmentinaforeignoperation.Thesearerecognisedinothercomprehensiveincome,and

arepresentedinthetranslationreserveinequity.

(c) Plant and equipment

(i) Recognition and measurement

Itemsofplantandequipmentarestatedatcostlessaccumulateddepreciationandaccumulatedimpairmentlosses.

Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is

integraltothefunctionalityoftherelatedequipmentiscapitalisedaspartofthatequipment.

Whenpartsofanitemofplantandequipmenthavedifferentusefullives,theyareaccountedforasseparateitems

(majorcomponents)ofplantandequipment.

The gain or loss on disposal of an item of plant and equipment is determined by comparing the proceeds from

disposalwiththecarryingamountofplantandequipment,andisrecognisednetwithinotherincome/otherexpenses

inprofitorloss.

(ii) Subsequent costs

Thecostofreplacingacomponentofanitemofplantandequipmentisrecognisedinthecarryingamountofthe

item if it is probable that the future economic benefits embodied within the component will flow to the Group, and

itscostcanbemeasuredreliably.Thecarryingamountofthereplacedcomponentisderecognised.Thecostsofthe

day-to-dayservicingofplantandequipmentarerecognisedinprofitorlossasincurred.

(iii) Depreciation

Depreciationisbasedonthecostofanasset less itsresidualvalue.Significantcomponentsof individualassetsare

assessed and if a component has a useful life that is different from the remainder of that asset, that component is

calculatedseparately.

Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component

ofanitemofplantandequipment.Leasedassetsaredepreciatedovertheshorteroftheleasetermandtheiruseful

livesunlessitisreasonablycertainthattheGroupwillobtainownershipbytheendoftheleaseterm.




(c) Plant and equipment (cont’d)

(iii) Depreciation (cont’d)

The estimated useful lives for the current and comparative years are as follows:

Fittingsandofficeequipment – 3to5years

Motor vehicles – 5 years

Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted

ifappropriate.

(d) intangible asset

Goodwill

Goodwill represents the excess of:

• thefairvalueoftheconsiderationtransferred;plus

• therecognisedamountofanynon-controllinginterestsintheacquiree;plus

• ifthebusinesscombinationisachievedinstages,thefairvalueoftheexistingequityinterestintheacquiree,

overthenetrecognisedamount(generallyfairvalue)oftheidentifiableassetsacquiredandliabilitiesassumed.

Whentheexcessisnegative,abargainpurchasegainisrecognisedimmediatelyinprofitorloss.

Subsequent measurement

Goodwill is measured at cost less accumulated impairment losses. In respect of equity-accounted investees, the

carrying amount of goodwill is included in the carrying amount of the investment, and an impairment loss on such

aninvestmentisnotallocatedtoanyasset,includinggoodwill,thatformspartofthecarryingamountoftheequity-

accountedinvestee.

Acquiredcontractualright

Intangible asset of the Group represents an acquired contractual right and is measured at cost less accumulated

amortisationandimpairmentlosses.Intangibleassetsareamortisedinprofitorlossonastraight-linebasisovertheir

estimatedusefullivesfromthedateofacquisitionovertheperiodasstatedineachcontract.Theestimateduseful

lifeforthecurrentandcomparativeyearsis2years.

Amortisation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted

ifappropriate.




(e) Financial instruments

(i) Non-derivative financial assets

The Group initially recognises loans and receivables and deposits on the date that they are originated. All other

financialassets(includingassetsdesignatedatfairvaluethroughprofitor loss)arerecognisedinitiallyonthetrade

date,whichisthedatetheGroupbecomesapartytothecontractualprovisionsoftheinstrument.

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it

transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially

alltherisksandrewardsofownershipofthefinancialassetaretransferred.Anyinterestintransferredfinancialassets

thatiscreatedorretainedbytheGroupisrecognisedasaseparateassetorliability.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when,

and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to

realisetheassetandsettletheliabilitysimultaneously.

The Group classifies non-derivative financial assets into the following categories: financial assets at fair value through

profitorloss,loansandreceivablesandavailable-for-salefinancialassets.

Financial assets at fair value through profit or loss

A financial asset is classified at fair value through profit or loss if it is classified as held-for-trading or is designated as

suchuponinitialrecognition.FinancialassetsaredesignatedatfairvaluethroughprofitorlossiftheGroupmanages

such investments and makes purchase and sale decisions based on their fair value in accordance with the Group’s

documentedriskmanagementorinvestmentstrategy.Attributabletransactioncostsarerecognisedinprofitorloss

asincurred.Financialassetsatfairvaluethroughprofitorlossaremeasuredatfairvalue,andchangesthereinare

recognisedinprofitorloss.

Financialassetsdesignatedatfairvaluethroughprofitorlosscompriseequitysecuritiesthatotherwisewouldhave

beenclassifiedasavailable-for-sale.

Loans and receivables

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active

market.Suchassetsarerecognisedinitiallyatfairvalueplusanydirectlyattributabletransactioncosts.Subsequent

to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less

anyimpairmentlosses.

Loans and receivables comprise interest-bearing loan to a private fund, trade and other receivables and cash and cash

equivalents.

Cashandcashequivalentscomprisecashbalancesandbankdepositswithoriginalmaturitiesofthreemonthsorless.




(e) Financial instruments (cont’d)

(i) Non-derivative financial assets (cont’d)

Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale or are

notclassifiedinanyoftheabovecategoriesoffinancialassets.Available-for-salefinancialassetsareinitiallyrecognised

atfairvalueplusanydirectlyattributabletransactioncosts.Subsequenttoinitialrecognition,theyaremeasuredat

fairvalueandchanges therein,other than impairment losses (seeNote3(f)(i))andforeigncurrencydifferenceson

available-for-saledebt instruments(seeNote3(b)(i)),arerecognisedinothercomprehensive incomeandpresented

inthefairvaluereserveinequity.Whenaninvestmentisderecognised,thecumulativegainorlossaccumulatedin

equityisreclassifiedtoprofitorloss.

Available-for-salefinancialassetscomprisesequitysecurities.

(ii) Non-derivative financial liabilities

All financial liabilities are recognised initially on the trade date, which is the date that the Group becomes a party to

thecontractualprovisionsoftheinstrument.

The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when,

and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to

realisetheassetandsettletheliabilitysimultaneously.

The Group classifies non-derivative financial liabilities into the other financial liabilities category. Such financial

liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial

recognition,thesefinancialliabilitiesaremeasuredatamortisedcostusingtheeffectiveinterestmethod.

Otherfinancialliabilitiescompriseloansandborrowings,andtradeandotherpayables.

(iii) Share capital

Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are

recognisedasadeductionfromequity,netofanytaxeffects.





(iv) Derivative financial instruments, including hedging accounting

TheGroupholdsderivativefinancialinstrumentstohedgeitsforeigncurrencyriskexposures.Embeddedderivatives

are separated from the host contract and accounted for separately if the economic characteristics and risks of the host

contract and the embedded derivative are not closely related, a separate instrument with the same terms as the

embedded derivative would meet the definition of a derivative, and the combined instrument is not measured at fair

valuethroughprofitorloss.

On initial designation of the derivative as the hedging instrument, the Group formally documents the relationship

between the hedging instrument and hedged item, including the risk management objectives and strategy in

undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the

effectiveness of the hedging relationship. The Group makes an assessment, both at the inception of the hedge

relationshipaswellasonanongoingbasis,ofwhetherthehedginginstrumentsareexpectedtobe“highlyeffective”

in offsetting the changes in the fair value or cash flows of the respective hedged items during the period for which

thehedgeisdesignated.

For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should

presentanexposuretovariationsincashflowsthatcouldultimatelyaffectreportedprofitorloss.

Derivatives are recognised initially at fair value; attributable transaction costs are recognised in profit or loss when

incurred.Subsequenttoinitialrecognition,derivativesaremeasuredatfairvalue,andchangesthereinareaccounted

forasdescribedbelow.

Cash flow hedges

Whenaderivativeisdesignatedasthehedginginstrumentinahedgeofthevariabilityincashflowsattributableto

a particular risk associated with a recognised asset or liability or a highly probable forecast transaction that could

affect profit or loss, the effective portion of changes in the fair value of the derivative is recognised in other

comprehensiveincomeandpresentedinthehedgingreserveinequity.Anyineffectiveportionofchangesinthefair

valueofthederivativeisrecognisedimmediatelyinprofitorloss.

Whenthehedgeditemisanon-financialasset,theamountcalculatedinequityis includedinthecarryingamount

oftheassetwhentheassetisrecognised.Inothercases,theamountaccumulatedinequityisreclassifiedtoprofit

or loss inthesameperiodthatthehedged itemaffectsprofitor loss. If thehedging instrumentno longermeets

the criteria for hedge accounting, expires or is sold, terminated or exercised, or the designation is revoked, then

hedgeaccountingisdiscontinuedprospectively.Iftheforecasttransactionisnolongerexpectedtooccur,thenthe

balanceinequityisreclassifiedinprofitorloss.





(iv) Derivative financial instruments, including hedging accounting (cont’d)

Other non-trading derivatives

Whenaderivativefinancialinstrumentisnotdesignatedinahedgerelationshipthatqualifiesforhedgeaccounting,

allchangesinitsfairvaluearerecognisedimmediatelyinprofitorloss.

(f) impairment

(i) Non-derivative financial assets

A financial asset not carried at fair value through profit or loss is assessed at the end of each reporting period to

determinewhetherthereisobjectiveevidencethatitisimpaired.Afinancialassetisimpairedifobjectiveevidence

indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event has a negative

effectontheestimatedfuturecashflowsofthatassetthatcanbeestimatedreliably.

Objectiveevidencethatfinancialassets(includingequitysecurities)areimpairedcanincludedefaultordelinquency

by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise,

indications that a debtor or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or

issuers in the Group, and economic conditions that correlate with defaults or the disappearance of an active market

forasecurity.Inaddition,foraninvestmentinanequitysecurity,asignificantorprolongeddeclineinitsfairvalue

belowitscostisobjectiveevidenceofimpairment.


TheGroupconsidersevidenceofimpairmentforloansandreceivablesatbothaspecificassetandcollectivelevel.All

individually significant loans and receivables are assessed for specific impairment. All individually significant

receivables found not to be specifically impaired are then collectively assessed for any impairment that has been

incurredbutnotyetidentified.Loansandreceivablesthatarenotindividuallysignificantarecollectivelyassessedfor

impairmentbygroupingtogetherloansandreceivableswithsimilarriskcharacteristics.

In assessing collective impairment, the Group uses historical trends of the probability of default, the timing of

recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic

andcreditconditionsaresuchthattheactuallossesarelikelytobegreaterorlessthansuggestedbyhistoricaltrends.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between

its carrying amount and the present value of the estimated future cash flows, discounted at the asset’s original

effectiveinterestrate.Lossesarerecognisedinprofitorlossandreflectedinanallowanceaccountagainstloansand

receivables.Interestontheimpairedassetcontinuestoberecognised.Whenasubsequentevent(e.g.repaymentby

adebtor) causes theamountof impairment loss todecrease, thedecrease in impairment loss is reversed through

profitorloss.




(f) impairment (cont’d)

(i) Non-derivative financial assets (cont’d)

Available-for-sale financial assets

Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the

fairvaluereserveinequitytoprofitorloss.Thecumulativelossthatisreclassifiedfromequitytoprofitorlossisthe

differencebetweentheacquisitioncost,netofanyprincipal repaymentandamortisation,andthecurrent fairvalue,

less any impairment loss recognised previously in profit or loss. Changes in impairment provisions attributable to

applicationoftheeffectiveinterestmethodarereflectedasacomponentofinterestincome.

If, inasubsequentperiod,thefairvalueofanimpairedavailable-for-saledebtsecurityincreasesandtheincreasecan

be related objectively to an event occurring after the impairment loss was recognised in profit or loss, then the

impairment loss is reversed. The amount of the reversal is recognised in profit or loss. However, any subsequent

recoveryinthefairvalueofanimpairedavailable-for-saleequitysecurityisrecognisedinothercomprehensiveincome.

(ii) Non-financial assets

The carrying amounts of the Group’s non-financial assets, other than deferred tax assets, are reviewed at each

reportingdate todeterminewhether there isany indicationof impairment. Ifanysuch indicationexists, thenthe

assets’recoverableamount isestimated.Forgoodwill,therecoverableamount isestimatedeachyearatthesame

time.Animpairmentlossisrecognisedifthecarryingamountofanassetexceedsitsestimatedrecoverableamount.

Impairmentlossesarerecognisedinprofitorloss.Impairmentlossesrecognisedinpriorperiodsareassessedateach

reportingdateforanyindicationthatthelosshasdecreasedornolongerexists. Animpairmentloss isreversedif

therehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversed

only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been

determined,netofdepreciationoramortisation,ifnoimpairmentlosshadbeenrecognised.

(g) Leased assets

Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as

finance leases. Upon initial recognition, the leasedasset ismeasuredat anamount equal to the lowerof its fair

valueandthepresentvalueoftheminimumleasepayments.Subsequenttoinitialrecognition,theassetisaccounted

forinaccordancewiththeaccountingpolicyapplicabletothatasset.

OtherleasesareoperatingleasesandarenotrecognisedintheGroup’sstatementoffinancialposition.

(h) Lease payments

Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the

lease.Leaseincentivesreceivedarerecognisedinprofitorlossasanintegralpartofthetotalleaseexpense,overthe

termofthelease.




(h) Lease payments (cont’d)

Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction

oftheoutstandingliability. Thefinancelease isallocatedtoeachperiodduringthe leasetermsoastoproducea

constantperiodicrateofinterestontheremainingbalanceoftheliability.

Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of

theleasewhentheleaseadjustmentisconfirmed.

Determining whether an arrangement contains a lease

At inception of an arrangement, the Group determines whether such an arrangement is or contains a lease. A

specificassetisthesubjectofaleaseiffulfilmentofthearrangementisdependentontheuseofthatspecificasset.

An arrangement conveys the right to use the asset if the arrangement conveys to the Group the right to control the

useoftheunderlyingasset.

At interception or upon reassessment of the arrangement, the Group separates payments and other consideration

requiredbysuchanarrangementintothosefortheleaseandthoseforotherelementsonthebasisoftheirrelative

fairvalues.IftheGroupconcludesforafinanceleasethatitisimpracticabletoseparatethepaymentsreliably,then

anassetanda liabilityarerecognisedatanamountequal tothefairvalueoftheunderlyingasset. Subsequently,

the liability is reduced as payments are made and an imputed finance charge on the liability is recognised using the

Group’sincrementalborrowingrate.

(i) employee benefits

(i) Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions

into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations

for contributions to defined contribution pension plans are recognised as an employee benefit expense in

profitorlossintheperiodsduringwhichservicesarerenderedbyemployees.

(ii) Short-term benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the

related service is provided. A liability is recognised for the amount expected to be paid under short-term

cash bonus if the Group has a present legal or constructive obligation to pay this amount as a result of past

serviceprovidedbytheemployee,andtheobligationcanbeestimatedreliably.




(j) Revenue recognition

(i) Real estate investment trust (“REIT”) management fees

REIT management fees, comprising base and performance fees, are derived from the management of REITs and are

determined based on the value of the real estate assets or total gross assets under management and net property

incomeoftheREITsmanaged,respectively.Thesefeesarerecognisedonanaccrualbasis.

(ii) Acquisition and performance fees

AcquisitionfeesrelatetofeesearnedinrelationtotheacquisitionofpropertiesbyREITsandalsoincludescorporate

financialadvisoryfeesearnedinrelationtotheacquisitionofpropertiesbyREITs.Theacquisitionfeesaredetermined

basedonthevalueofthepropertiesacquiredandarerecognisedwhentheserviceshavebeenrendered.Corporate

finance advisory fees are determined based on contracted terms and are recognised when the services have been

rendered.

Performance fees relate to fees earned in relation to private real estate funds where the returns of the private real

estatefundsexceedcertainspecifiedhurdles.

(iii) Portfolio management fees

Portfolio management fees are derived from the management of private real estate funds and are determined based on

committedcapital,contributedcapital,portfoliovalueorinvestedcapital.Thesefeesarerecognisedonanaccrualbasis.

(iv) Real estate management service fees

Real estate management service fees are derived from the provision of property management services and convention

andexhibitionservicesrendered.Thesefeesincludemarketingservicesfees,advertisingfeesandcommissionsand

promotioncommissions,andarerecognisedonanaccrualbasis.

(k) government grants – Jobs Credit scheme

CashgrantsreceivedfromthegovernmentinrelationtotheJobsCreditSchemearerecognisedasotherincomeupon

receipt.Theschemewasdiscontinuedwiththefinalpaymenton30June2010.

(l) Finance income and finance costs

Financeincomecomprisesinterestincomeonfundsinvested(includingavailable-for-salefinancialassets),distribution

income, gains on the disposal of available-for-sale financial assets, fair value gains on financial assets at fair value

through profit or loss and gains on hedging instruments that are recognised in profit or loss. Interest income is

recognisedas itaccrues inprofitor loss,using theeffective interestmethod. Distribution income is recognised in

profitorlosswhentheunitholder’srighttoreceivepaymentisestablished.




(l) Finance income and finance costs (cont’d)

Finance costs comprise interest expense on financial liabilities, fees incurred in connection with the arrangement of

debt facility, losses on disposal of available-for-sale financial assets, fair value losses on financial assets at fair value

throughprofitorloss,impairmentlossesrecognisedonfinancialassets(otherthantradereceivables),andlosseson

hedginginstrumentsthatarerecognisedinprofitorloss.

Borrowingcoststhatarenotdirectlyattributabletotheacquisition,constructionorproductionofaqualifyingasset

arerecognisedinprofitorlossusingtheeffectiveinterestmethod.

Foreign currency gains and losses are reported on a net basis as either finance income or finance cost depending on

whetherforeigncurrencymovementsareinanetgainornetlossposition.

(m) tax

Taxexpensecomprisescurrentanddeferredtax.Currenttaxanddeferredtaxisrecognisedinprofitorlossexcepttothe

extentthatitrelatestoabusinesscombination,oritemsrecogniseddirectlyinequityorinothercomprehensiveincome.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted

orsubstantivelyenactedatthereportingdate,andanyadjustmenttotaxpayableinrespectofpreviousyears.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities

forfinancialreportingpurposesandtheamountsusedfortaxationpurposes.Deferredtaxisnotrecognisedfor:

• temporarydifferencesontheinitialrecognitionofassetsorliabilitiesinatransactionthatisnotabusiness

combination and that affects neither accounting nor taxable profit or loss;

• temporarydifferencesrelatedtoinvestmentsinsubsidiariesandassociatestotheextentthatitisprobable

that they will not reverse in the foreseeable future; and

• taxabletemporarydifferencesarisingontheinitialrecognitionofgoodwill.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse,

basedonthelawsthathavebeenenactedorsubstantivelyenactedbythereportingdate.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and

assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax

entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will

berealisedsimultaneously.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the

extent that it isprobable that future taxableprofitswillbeavailableagainstwhich theycanbeutilised. Deferred

tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the

relatedtaxbenefitwillberealised.




(m) tax (cont’d)

In the ordinary course of business, there are many transactions and calculations for which the ultimate tax

treatment is uncertain. Therefore, the Group recognises tax liabilities based on estimates of whether additional

taxes and interest will be due. These tax liabilities are recognised when the Group believes that certain positions

may not be fully sustained upon review by tax authorities, despite the Group’s belief that its tax return positions

are supportable. The Group believes that its accruals for tax liabilities are adequate for all open tax years

basedonitsassessmentofmanyfactorsincludinginterpretationsoftaxlawandpriorexperience.Thisassessment

reliesonestimatesandassumptionsandmayinvolveaseriesofmultifacetedjudgmentsaboutfutureevents.New

information may become available that causes the Group to change its judgment regarding the adequacy of

existing tax liabilities, such changes to tax liabilities will impact tax expense in the period that such a determination

ismade.

(n) Key management personnel

Key management personnel of the Group are those persons having the authority and responsibility for planning,

directing and controlling the activities of the entity. The directors of the Company are considered as key

managementpersonneloftheGroup.

(o) segment reporting

An operating segment is a component of the Group that engages in business activities from which it may earn

revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s

othercomponents. Alloperating segments’operating resultsare reviewedmonthlyby theGroupChiefExecutive

Officer (“Group CEO”) to make decisions about resources to be allocated to the segment and assess its

performance,andforwhichdiscretefinancialinformationisavailable.

Segment results reported to the Group CEO include items directly attributable to a segment as well as those that

can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the

Company’sheadquarters),headofficeexpenses,financeleaseliabilities,andtaxassetsandliabilities.

Segmentcapitalexpenditureisthetotalcostincurredduringtheyeartoacquireplantandequipment.

(p) earnings per share

The Group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share

is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted

averagenumberofordinarysharesoutstandingduringtheyear,adjustedforownsharesheld.Dilutedearningsper

share is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average

number of ordinary shares outstanding, adjusted for own shares held, and for the effects of all dilutive potential

ordinaryshares.




(q) new standards and interpretations not yet adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning

after1January2011,andhavenotbeenappliedinpreparingthesefinancialstatements.Noneoftheseareexpected

tohaveasignificanteffectonthefinancialstatementsoftheGroupandtheCompany.

4. PLant anD equiPment

Leased motor vehicles

Duringtheyear,therewerenoadditionstomotorvehiclesfinancedbynewfinanceleases(2010:$573,000).Asat

31December2011,thecarryingamountofmotorvehiclesheldunderfinanceleaseswas$437,000(2010:$550,000).

TheamountoutstandingunderthefinanceleaseagreementsissetoutinNote10tothefinancialstatements.

Fittings and office equipment

motor vehicles total

group $’000 $’000 $’000

Cost

At1January2010 1,619 467 2,086

Additions 445 573 1,018

Disposals (107) (452) (559)

Effect of movement in exchange rates (28) (15) (43)

At 31 December 2010 1,929 573 2,502

Additions 444 - 444

Disposals (35) - (35)

Effect of movement in exchange rates 2 3 5

At 31 December 2011 2,340 576 2,916

accumulated depreciation

At1January2010 724 267 991

Depreciation for the year 367 99 466

Disposals (91) (327) (418)

Effect of movement in exchange rates (19) (16) (35)

At 31 December 2010 981 23 1,004

Depreciation for the year 464 114 578

Disposals (31) - (31)

Effect of movement in exchange rates 3 2 5

At 31 December 2011 1,417 139 1,556

Carrying amounts

At1January2010 895 200 1,095

At 31 December 2010 948 550 1,498

At 31 December 2011 923 437 1,360



5. assoCiates

Details of associates are as follows:

(1) Audited by Ernst & Young, Malaysia.

(2) Audited by KPMG LLP, Singapore.

(3) Not required to be audited by law of country of incorporation.

(4) Audited by Deloitte Touche Tohmatsu, Hong Kong.

(5) Audited by Unity & Strength Certified Public Accountants, China.

Summary financial information for associates which is not adjusted for the percentage of ownership held by the

Group, are as follows:

group

2011 2010

$’000 $’000

Movements in carrying value:

At1January 1,060 551

Additions 4 40

Effect of movement in exchange rates 70 13

Share of profit for the year, net of tax 2,794 456

Dividends (828) -

At 31 December 3,100 1,060

Country ofincorporation

ownership interest

name of associates 2011 2010

% %

AmARAREITHoldingsSdn.Bhd.(1) Malaysia 30 30

AmARAREITManagersSdn.Bhd.(1) Malaysia 30 30

CachePropertyManagementPte.Ltd.(2) Singapore 40 40

WorldDeluxeEnterprisesLimited(3) British Virgin Islands 30 -

HuiXianAssetManagementLimited(4) Hong Kong 30 -

BeijingHuiXianEnterpriseServicesLimited(5) People’s Republic of China 30 -

2011 2010

$’000 $’000

assets and liabilities

Total assets 23,591 3,126

Total liabilities 13,919 592

Results

Revenue 23,197 3,029

Expenses(includingtaxation) (14,295) (1,746)

Profit after taxation 8,902 1,283



5. assoCiates (cont’d)

In2011,theGroup,togetherwithCheungKong(Holdings)LimitedandCITICSecuritiesGroupLimited,established

WorldDeluxeEnterprisesLimited,BeijingHuiXianEnterpriseServicesLimitedandHuiXianAssetManagementLimited

tomanageHuiXianRealEstateInvestmentTrust.TheGroup’scontributiontosetuptheinvestmentwas$4,000and

resultedintheGroupobtaininga30%equityinterestinthesecompanies.Thiscontributionrepresentedstart-upcosts

andasaresult,thereisnogoodwillincludedintheinvestment.

6. FinanCiaL assets

QuotedfinancialassetsrelatetounitsheldinlistedREITsandarealestatefundmanager.Certainquotedavailable-for-

salesecuritieswithanaggregateamountof$47,528,000(2010:$26,575,000)relatetounitsheldincertainlistedREITs

whicharepledgedassecuritytoobtaincreditfacilities.

Unquotedavailable-for-salefinancialassetswithacarryingvalueof$30,513,000(2010:$25,705,000)relatetoseed

capitalinvestmentsstatedatfairvalue.

Unquotedavailable-for-salefinancialassetsof$3,672,000(2010:$4,640,000)relatetounitsheldinanopen-ended

specialistequityfund.TheGrouphasprovidedanimpairmentlossof$541,000(2010:Nil)duringtheyearasaresultof

asubsequentdeclineinthefairvalueoftheinvestmentwhichhasbeenpreviouslyimpaired.

ThenotionalprincipalamountsoftheGroup’soutstandingderivativefinancialinstruments(forwardexchangecontracts)

attheendoftheyearwere$15,556,000(2010:$6,161,000).

Theinterest-bearingloantoaprivatefund,classifiedas“loansandreceivables”of$8,000,000in2010wassecuredby

thesharesoftheborrower,withanet interestrateof8.50%perannum.Thesecured loanwassettled infull in

August2011.

The Group’s exposure to credit, currency and interest rate risks related to financial assets is disclosed in Note 11.

sensitivity analysis - equity price risk

AlloftheGroup’squotedequityfinancialassetsarelistedontheSGX-ST,theStockExchangeofHongKong(“SEHK”),

ASXLimitedortheBursaMalaysiaSecuritiesBerhad.

group

2011 2010

$’000 $’000

non-current

quoted available-for-sale financial assets 62,735 95,313

Unquotedavailable-for-salefinancialassets 34,185 30,345

Interest bearing loan to a private fund - 8,000

96,920 133,658

Current

Derivative assets – forward exchange contracts - 119

quoted financial assets held-for-trading 24,764 15,299

24,764 15,418



6. FinanCiaL assets (cont’d)

sensitivity analysis - equity price risk (cont’d)

Forsuchinvestmentsclassifiedasavailable-for-saleorheld-for-trading,a10%increase/(decrease)intheabovestock

pricesatthereportingdatewouldhaveincreased/(decreased)equityandprofitorlossbytheamountsshownbelow.

Theanalysisassumesthatallothervariablesremainconstant.Theanalysisisperformedonthesamebasisfor2010,

as indicated below:

7. tRaDe anD otheR ReCeiVaBLes

Thereisnoimpairmentallowancearisingfromtheoutstandingbalances.

Thenon-tradeamountsduefromarelatedpartyandsubsidiariesareunsecured,interest-freeandrepayableondemand.

Trade receivables for the Group include amounts due from a trustee of REITs of $1,786,000 (2010: $1,263,000).

Accrued revenue relates to accrual of REIT management fees, portfolio management fees and real estate management

servicesfees.

TheCompany’sexposuretocreditandcurrencyrisksrelatedtotradeandotherreceivables isdisclosedinNote11.

equity Profit or (loss)

2011 2010 2011 2010

$’000 $’000 $’000 $’000

SGX-ST 4,796 6,223 2,262 1,530SEHK - - 214 -ASXLimited 390 651 - -Bursa Malaysia Securities Berhad 1,088 2,658 - -

group Company

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Trade receivables 2,886 1,888 - -

Accrued revenue 18,672 17,189 - -

Deposits 618 610 - -

Other receivables 6,911 5,733 43 148Amounts due from a related party, non-trade

247 - - -

Amounts due from subsidiaries, non-trade - - 5,242 3,196

Loans and receivables 29,334 25,420 5,285 3,344Prepayments 1,784 1,447 19 25

31,118 26,867 5,304 3,369

Non-current 502 495 - -

Current 30,616 26,372 5,304 3,369

31,118 26,867 5,304 3,369



8. Cash anD Cash equiVaLents

TheGroup’sexposuretointerestrateriskandsensitivityanalysisaredisclosedinNote11.

9. CaPitaL anD ReseRVes

share capital

On1June2011,69,847,192newordinarysharesof$0.002eachinthecapitaloftheCompanycreditedasfullypaid

were allotted and issued to shareholders of the Company on the basis of one bonus share for every ten existing shares

heldinthecapitaloftheCompany(the“BonusIssue”).FollowingtheBonusIssue,thetotalnumberofissuedshares

oftheCompanyincreasedfrom698,471,997to768,319,189.

On26April2010,thebonus issueofupto116,412,000newordinarysharesof$0.002each inthecapitalof the

Company, on the basis of one bonus share credited as fully paid for every five existing shares held in the capital of the

Company,wasapprovedbyshareholdersattheCompany’sAnnualGeneralMeeting.On10May2010,116,411,997

bonusshareswereissuedfromthesharepremiumaccount.

Allthenewlyissuedsharesrankparipassuinallrespectwiththeexistingordinaryshares.

The holders of ordinary shares are entitled to receive dividends as declared from time to time, and are entitled to one

votepershareatmeetingsoftheCompany.AllordinarysharesrankequallywithregardtotheCompany’sresidualassets.

Allissuedsharesarefullypaid,withaparvalueof$0.002each.

share premium

Sharepremiumisnetofcostofissueofnewshares.

group Company

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Cash at bank and in hand 55,209 37,337 31,091 10,240

Short-term fixed deposits 2,082 4,990 - -

Cashandcashequivalentsinthe statement of cash flows

57,291 42,327 31,091 10,240

2011 2010

number ofshares

number ofshares

’000 ’000

group and Company

At1January 698,472 582,060

Issue of bonus shares 69,847 116,412

At 31 December 768,319 698,472



9. CaPitaL anD ReseRVes (cont’d)

Foreign currency translation reserve

The foreign currency translation reserve comprises all foreign exchange differences arising from the translation of

the financial statements of foreign operations whose functional currencies are different from the functional currency

oftheCompany.

Fair value reserve

The fair value reserve comprises the cumulative net change in the fair value of available-for-sale financial assets until the

investmentsarederecognisedorimpaired.

hedging reserve

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging

instrumentsrelatedtohedgedtransactionsthathaveyettoaffectprofitorloss.

Dividends

The following dividends were declared and paid by the Group and Company:

At the Annual General Meeting to be held on 26 April 2012 (2010: 28 April 2011), a final exempt dividend of

$0.0270 (2010: $0.0250) per share amounting to $20,745,000 (2010: $17,462,000) will be recommended for

shareholders’approval. Thesefinancialstatementsdonotreflectthisdividend,whichwillbeaccountedfor inthe

shareholders’equityasanappropriationofretainedprofitsinthefinancialyearending31December2012.

10. Loans anD BoRRowings

This note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings,

whicharemeasuredatamortisedcost. Formore informationabouttheGroup’sexposureto interest rate, foreign

currencyandliquidityrisk,seeNote11.

group and Company

2011 2010

For the year ended 31 December $’000 $’000

Paid by the Company to owners of the Company

Interimdividendof$0.0230perordinaryshare(2010:$0.0230) 17,671 16,065

Finaldividendof$0.0250perordinaryshare,paidinrespectof thepreviousfinancialyear(2010:$0.0250) 17,462 14,552

35,133 30,617

group

2011 2010

Paid by a subsidiary to non-controlling interest $’000 $’000

Dividendof$3.82perordinaryshare(2010:Nil) 1,528 -



10. Loans anD BoRRowings (cont’d)

terms and debt repayment schedule

Terms and conditions of outstanding loans and borrowings are as follows:

Thesecuredbankloanin2010wasrelatedtoaRM44.9millionsecuredvariableraterevolvingcreditfacilityprovided

toasubsidiary,JadelineCapitalSdn.Bhd.topartlyfinanceitsacquisitionoftheunitsinAmFIRSTREIT.Thefacility

wassecuredbytheunitsheldinAmFIRSTREITandwasrepaidinfullatmaturityinMay2011.

group

2011 2010

$’000 $’000

non-current liabilities

Finance lease liabilities 268 387

Current liabilities

Secured bank loan - 18,851

Finance lease liabilities 120 120

120 18,971

388 19,358

Currencynominal

interest rateyear of

maturityFair

valueCarryingamount

group $’000 $’000

2011

Finance lease liabilities HKD 2.50%perannum 2013 101 101

Finance lease liabilities SGD 2.68%perannum 2017 287 287

388 388

Currencynominal

interest rateyear of

maturityFair

valueCarryingamount

$’000 $’000

2010

Secured bank loan MYR 1.0%perannumabovethe bank’s cost of funds

2011 18,851 18,851

Finance lease liabilities HKD 2.50%perannum 2013 170 170

Finance lease liabilities SGD 2.68%perannum 2017 337 337

19,358 19,358



10. Loans anD BoRRowings (cont’d)

Finance lease liabilities

At 31 December, the Group has obligations under finance leases that are payable as follows:

11. FinanCiaL instRuments

overview

The Group has exposure to the following risks from its use of financial instruments:

• creditrisk

• liquidityrisk

• marketrisk

This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies

andprocessesformeasuringandmanagingrisk,andtheGroup’smanagementofcapital.

Risk management framework

The Group has a system of controls in place to create an acceptable balance between the cost of risks occurring and

the cost of managing the risks. The management continually monitors the Group’s risk management process to

ensurethatanappropriatebalancebetweenriskandcontrolisachieved.Riskmanagementpoliciesandsystemsare

reviewedregularlytoreflectchangesinmarketconditionsandtheGroup’sactivities.

The Audit Committee oversees how management monitors compliance with the Group’s risk management policies

andprocedures,andreviewstheadequacyoftheriskmanagementframeworkinrelationtotherisksfacedbythe

Group. The Audit Committee is assisted in its oversight role by the Group Risk Management and Internal Audit

division.TheGroupRiskManagementandInternalAuditdivisionundertakesbothregularandadhocreviewsofrisk

managementcontrolsandprocedures,theresultsofwhicharereportedtotheAuditCommittee.

2011 2010

Principal interest

Future minimum Payments Principal interest

Future minimum Payments

group $’000 $’000 $’000 $’000 $’000 $’000

Within1year 120 15 135 120 15 135

Between 1 to 5 years 223 41 264 294 46 340

More than 5 years 45 8 53 93 17 110

388 64 452 507 78 585



11. FinanCiaL instRuments (cont’d)

Credit risk

Credit risk is the risk of financial loss to the Group if a counterparty to a financial instrument fails to meet its

contractualobligations,andarisesprincipallyfromtheGroup’sreceivablesfromcounterparties.

The carrying amount of financial assets in the statement of financial position represents the Group and the

Company’srespectivemaximumexposuretocredit risk,beforetaking intoaccountanycollateralheld. TheGroup

andtheCompanydoesnotholdanycollateralinrespectofitsfinancialassets.

trade and other receivables

The Group’s exposure to credit risk arises mainly through its trade and accrued fees receivables from REITs, real estate

managementandprivaterealestatefunds.Exposuretocreditriskismonitoredonanongoingbasis.

investments and other financial assets

Financial assets that are potentially subject to concentrations of credit risk and failures by counterparties to

discharge their obligations in full or in a timelymanner consistprincipallyof cashand cashequivalents andother

financialassets.Creditriskoncashandcashequivalentsandderivativefinancialinstrumentsislimitedbecausethese

are placed with regulated financial institutions. Credit risk on other financial assets is limited because the

counterparties are entities with high credit quality and/or acceptable credit ratings. These financial assets are

monitoredonanongoingbasisbymanagement.




Credit risk (cont’d)

Thecarryingamountoffinancialassetsrepresentsthemaximumcreditexposure.Themaximumexposuretocreditrisk

at the reporting date was:

impairment losses

The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade

andotherreceivables.Themaincomponentsofthisallowanceareaspecificlosscomponentthatrelatestoindividually

significant exposures, and a collective loss component established for groups of similar assets in respect of losses that

havebeen incurredbutnotyet identified. Thecollective lossallowance isdeterminedbasedonhistoricaldataof

paymentstatisticsforsimilarfinancialassets.

The aging of trade receivables that was not impaired at the reporting date was:

Based on historical default rates, the Group believes that no impairment allowance is necessary as these accounts mainlyrelatestocustomersthathaveagoodpaymentrecordwiththeGroup.Noneoftheotherreceivablesarepast due.

group Company

2011 2010 2011 2010

note $’000 $’000 $’000 $’000


- Interest bearing loan to a private fund 6 - 8,000 - -

- Loan and other receivables 7 29,334 25,420 5,285 3,344

-Cashandcashequivalents 8 57,291 42,327 31,091 10,240

available-for-sale financial assets

- quoted financial assets 6 62,735 95,313 - -

-Unquotedfinancialassets 6 34,185 30,345 - -

Fair value through profit or loss

- quoted financial assets held-for-trading 6 24,764 15,299 - -

- Derivative assets – forward exchange contracts 6 - 119 - -

208,309 216,823 36,376 13,584

group

2011 2010

$’000 $’000

Not past due 2,555 1,634

Past due 0-30 days 175 103


Past due 61-90 days 15 -


More than 120 days 28 -

2,886 1,888




Liquidity risk

LiquidityriskistheriskthattheGroupwillencounterdifficultyinmeetingtheobligationsassociatedwithitsfinancial

liabilitiesthataresettledbydeliveringcashoranotherfinancialasset.TheGroup’sapproachtomanagingliquidityis

toensure,asfaraspossible,that itwillalwayshavesufficient liquiditytomeet its liabilitieswhendue,underboth

normalandstressedconditions,withoutincurringunacceptablelossesorriskingdamagetotheGroup’sreputation.

Typically the Group ensures that it has sufficient cash on demand to meet expected operational expenses for a period

of 60 days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances

thatcannotreasonablybepredicted,suchasnaturaldisasters.

In addition, the Group maintains the following lines of credit:

• Anunutilisedrevolvingcreditfacilityof$20.0millionsecuredontheGroup’sstrategicstakeinSuntecREIT

(2010:Nil).Thefacilitybearsinterestatafloatingrateof1.35%p.a.abovetheAssociationofBanksin

SingaporeSwapOfferRateandterminatesin2014.

• AnunutilisedrevolvingcreditfacilityofRM16.0millionsecuredontheGroup’sstrategicstakeinAmFIRST

REIT(2010:Nil).Thefacilitybearsinterestatafloatingrateof1.4%p.a.abovethebank’scostoffunds.The

facilityisavailableforaperiodof3yearswithanoptiontoextendforanother3years.

• $6.0 million and HK$3.0 million (2010: $6.0 million and HK$3.0 million) overdraft facilities that are

unsecured.InterestwouldbepayableattherespectiveSingaporeandHongKongprimelendingrates.

The following are the contractual maturities of financial liabilities which are measured at amortised cost including

estimated interest payments but excluding the impact of netting agreements:

Cash flows

Carrying amount

Contractualcash flows

within1 year

within1 to 5 years

more than5 years

group $’000 $’000 $’000 $’000 $’000

2011

non-derivative financial liabilities

Finance lease liabilities 388 (452) (135) (264) (53)

Trade and other payables 17,343 (17,343) (17,343) - -

17,731 (17,795) (17,478) (264) (53)

2010

non-derivative financial liabilities

Floating interest rate loans 18,851 (19,285) (19,285) - -

Finance lease liabilities 507 (585) (135) (340) (110)


39,558 (40,070) (39,620) (340) (110)




Liquidity risk (cont’d)

It is not expected that the cash flows included in the maturity analysis of the Group and the Company could occur

significantlyearlier,oratsignificantlydifferentamounts.

The following table indicates the periods in which the cash flow associated with derivatives that are cash flow hedges

are expected to occur:

market risk

Marketriskistheriskthatchangesinmarketprices,suchasinterestrates,foreignexchangeratesandequitypriceswill

affecttheGroup’sincomeorthevalueofitsholdingsoffinancialinstruments.Theobjectiveofmarketriskmanagement

istomanageandcontrolmarketriskexposureswithinacceptableparameters,whileoptimisingthereturn.

TheGroupmanagesitsmarketriskusingderivatives.Allsuchtransactionsarecarriedoutwithintheguidelinessetby

theBoardofDirectors.Generally,theGroupseekstoapplyhedgeaccountinginordertomanagevolatilityinprofitorloss.

Currency risk

exposure to currency risk

Exposure to foreign currency risk is monitored on an outgoing basis and the Group endeavours to keep the net

exposuretoanacceptablelevel.

Cash flows

Carrying amount

Contractualcash flows

within1 year

within1 to 5 years

more than5 years

Company $’000 $’000 $’000 $’000 $’000

2011


2010


Cash flows

Carrying amount

expectedcash flows

within1 year

within1 to 5 years

more than5 years

group $’000 $’000 $’000 $’000 $’000

2011

Forward exchange contracts - liabilities (717) (717) (717) - -

2010

Forward exchange contracts - assets 119 119 119 - -




market risk (cont’d)

Currency risk (cont’d)

The Group’s and Company’s exposures to foreign currency was as follows based on notional amounts:

sensitivity analysis

A 10% strengthening of the Singapore dollar against the following currencies at the reporting date would have

increased/(decreased)profitorlossbytheamountsshownbelow.Thisanalysisisbasedonforeigncurrencyexchange

ratevariancesthattheGroupconsideredtobereasonablypossibleattheendofthereportingperiod.Theanalysis

assumesthatallothervariables,inparticularinterestrates,remainconstant.Theanalysisisperformedonthesame

basis for 2010, as indicated below:

A10%weakeningof theSingaporedollaragainst theabovecurrenciesat the reportingdatewouldhavehad theequal

butoppositeeffectontheabovecurrenciestotheamountsshownabove,onthebasisthatallothervariablesremainconstant.

group Company

singapore dollar

united statesdollar

hong Kongdollar

australiandollar

ChineseRenminbi

united statesdollar

hong Kongdollar

$’000 $’000 $’000 $’000 $’000 $’000 $’000

2011

Trade and other receivables - 545 307 - 8 - -

Cashandcashequivalents 1,024 855 643 382 - 222 -

Trade and other payables (6) (473) (157) - (33) - (5)

1,018 927 793 382 (25) 222 (5)

2010

Trade and other receivables - - 2,225 - - - -

Cashandcashequivalents 34 270 63 - - 5 -

Trade and other payables (21) - (64) - - - -

13 270 2,224 - - 5 -

group Company

Profit or (loss) Profit or (loss)

2011 2010 2011 2010

$’000 $’000 $’000 $’000

United States dollar (93) (27) (22) (1)

Hong Kong dollar (79) (222) 1 -

Australian dollar (38) - - -

Chinese Renminbi 2 - - -

(208) (249) (21) (1)




market risk (cont’d)

interest rate risk

At the reporting date, the interest rate profile of the interest-bearing financial instruments was:

Fair value sensitivity analysis for fixed rate instruments

TheGroupdoesnotaccountforanyfixedratefinancialassetsandliabilitiesatfairvaluethroughprofitorloss.Therefore

achangeininterestratesatthereportingdatewouldnotaffectprofitorloss.

Cash flow sensitivity analysis for variable rate instruments

Achangeof100basispoints(bp)ininterestrateatthereportingdatewouldhaveincreased/(decreased)profitor

lossbytheamountsshownbelow.Thisanalysisassumesthatallothervariables,inparticularforeigncurrencyrates,

remainconstant.Theanalysisisperformedonthesamebasisfor2010.

Capital management

The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to

sustainfuturedevelopmentofthebusiness.TheBoardofDirectorsmonitorsthereturnoncapital,whichtheGroup

definesasresultfromoperatingactivitiesdividedbytotalshareholders’equity,excludingnon-controllinginterests.

group

Carrying amount

2011 2010

$’000 $’000

Fixed rate instruments

Financial assets 2,082 4,990

Financial liabilities (388) (507)

1,694 4,483

Variable rate instruments

Financial liabilities - 18,851

Profit or (loss)

100 bp increase 100 bp decrease

$’000 $’000

group

2011

Variable rate instruments - -

Cashflowsensitivity(net) - -

2010

Variable rate instruments (189) 189

Cashflowsensitivity(net) (189) 189




Capital management (cont’d)

TheBoardofDirectorsalsomonitorsthelevelofdividendstoordinaryshareholders.Therewerenochangesinthe

Group’sapproachtocapitalmanagementduringtheyear.

Inaddition,certainsubsidiariesoftheCompanyareCapitalMarketsServices(“CMS”)Licenseholdersregisteredbythe

Monetary Authority of Singapore to conduct the regulated activity of REIT management and are subject to the

requirementsunder theSecuritiesandFuturesActandSecuritiesandFutures (LicensingandConductofBusiness)

Regulations(collectivelyreferredtoas“CMSregulations”). Asdefinedintheapplicable legislationundertheCMS

regulations, these subsidiaries are required to maintain the “Base Capital” of $1,000,000 and ensure that their

“FinancialResources”shallnotfallbelow120%ofthe“TotalRiskRequirement”.

Apart from the above, certain subsidiaries of the Company are licensed corporations registered under the Hong Kong

SecuritiesandFuturesOrdinanceandaresubjecttothecapitalrequirementsoftheHongKongSecuritiesandFutures

(Financial Resources) Rules (“FRR”). The minimum paid-up share capital requirement of these subsidiaries is

HK$5,000,000andtheminimumliquidcapitalrequirementisthehigherofHK$3,000,000andthevariablerequired

liquidcapitalasdefinedintheFRR.

TheGroupmonitorsitscompliancewiththerequirementsofboththeCMSandFRRregulationsregularly.

Fair value

Fair values versus carrying amounts

The carrying amounts of the Group and the Company’s financial instruments carried at cost or amortised cost are not

materiallydifferentfromtheirfairvaluesasat31December2011and2010.

Fair value hierarchy

Thetablebelowanalysesfinancialinstrumentscarriedatfairvalue,byvaluationmethod.Thedifferentlevelshavebeen

defined as follows:

• Level1:quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities.

• Level2:inputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,

eitherdirectly(i.e.asprices)orindirectly(i.e.derivedfromprices).

• Level3:inputsfortheassetorliabilitythatarenotbasedonobservablemarketpricedata(unobservableinputs).




Fair value (cont’d)

During the financial year ended 31 December 2011, there were no transfers between Level 1 and Level 2 of the fair

valuehierarchy(2010:notransfersineitherdirections).

The following table shows a reconciliation from the beginning balances to the ending balances for fair value

measurements in Level 3 of the fair value hierarchy:

ThefairvalueoftheLevel3financialinstrumentasatthereportingdatewasdeterminedusingavaluationtechnique

using the realisable net asset value approach, which takes into consideration the fair value of the underlying assets

andliabilitiesoftheentitytowhichthefinancialinstrumentrelates.Theassetsheldbytherelevantentitycomprise

mainlypropertieswhose fairvaluesweredeterminedbyan independent licensedappraiser. The fairvaluesof the

propertieswerebasedonmarketvaluesdeterminedusingthediscountedcashflowanddirectcomparisonmethods.

An analysis of the effect of changing one or more inputs to reasonably possible alternative assumptions has not been

presented as such an effect would not have resulted in a significant change to the fair value measurement of the

Group’stotalequity.

Level 1 Level 2 Level 3 total

$’000 $’000 $’000 $’000

group

2011

Available-for-sale financial assets 62,735 3,672 30,513 96,920

Financial assets held-for-trading 24,764 - - 24,764

Derivative liabilities – forward exchange contracts

- (717) - (717)

87,499 2,955 30,513 120,967

2010

Available-for-sale financial assets 95,313 4,640 25,705 125,658

Financial assets held-for-trading 15,299 - - 15,299

Derivative assets – forward exchange contracts

- 119 - 119

110,612 4,759 25,705 141,076

group

2011 2010

$’000 $’000

available-for-sale financial asset – Level 3:

At1January 25,705 10,980

Capital contribution 1,623 11,999

Capital returns (1,621) -

Total gains and losses recognised in other comprehensive income 4,806 2,726

At 31 December 30,513 25,705



12. DeFeRReD taX

Recognised deferred tax liabilities

Deferred tax liabilities are attributable to the following:

13. tRaDe anD otheR PayaBLes

TheGroupandtheCompany’sexposuretocurrencyandliquidityriskrelatedtotradeandotherpayablesisdisclosed

inNote11.

Outstandingbalanceswithsubsidiariesandanon-controllinginterestareunsecured.

14. DeRiVatiVe LiaBiLities

ThenotionalprincipalamountsoftheGroup’soutstandingderivativefinancialinstruments(forwardexchangecontracts)

attheendoftheyeararedisclosedinNote6.

group Company

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Deferred tax liabilities

Plantandequipment 117 142 - -

group Company

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Trade payables 2,059 2,704 49 26

Accrued expenses 15,207 16,158 1,370 1,825

Other payables 77 1,038 - 922

Amounts due to subsidiaries, non-trade - - 7 -

Amount due to a non-controlling interest, non-trade - 300 - -

17,343 20,200 1,426 2,773

group

2011 2010

$’000 $’000

Derivative liabilities – forward exchange contracts 717 -



15. ReVenue

16. PRoFit FoR the yeaR

The following items have been included in arriving at the profit for the year:

*Includedinstaffcostsarestaff-relatedexpensesof$18,479,000(2010:$15,450,000)forasubsidiarywhichwasfully

reimbursedfromaprivatefundandnettedoff.

group

2011 2010

$’000 $’000

REIT management fees 56,229 46,018

Portfolio management fees 21,764 25,561

Acquisitionandperformancefees 21,288 17,499

Real estate management service fees 12,867 13,051

112,148 102,129

group

2011 2010

$’000 $’000

other income

Gainondisposalofplantandequipment - 105

operating expenses

Audit fee paid to:

- auditors of the Company 319 291

- other auditors 72 72

Non-audit fee paid to:

- auditors of the Company 76 92

Amortisation of intangible asset 798 652

Depreciationofplantandequipment 578 466

Lossondisposalofplantandequipment 1 -

Foreign exchange loss, net - 651

Staff costs * 29,272 24,508

Contribution to defined contribution plans, included in staff costs 1,160 964



17. FinanCe inCome anD FinanCe Costs

Recognised in profit or loss:

18. taX eXPense

group

2011 2010

Finance income $’000 $’000

Interest income:

- bank deposits 48 47

- loan to a private fund 783 671

Gain on disposal of subsidiary - 203

Gain on fair valuation of held-for-trading securities - 1,710

Foreign exchange gain, net 91 -

Distribution income 9,644 7,599

Total finance income 10,566 10,230

Finance costs

Interest expense:

- bank loans 386 784

- finance lease liabilities 14 46

- bank overdraft 3 -

- others 25 41

Loss on fair valuation of held-for-trading securities 6,079 -

Impairment loss on available-for-sale financial asset 541 -

Total finance costs 7,048 871

group

2011 2010

$’000 $’000

Current tax expense

Current year 7,270 9,324

Overprovision in prior years (433) (93)

6,837 9,231

Deferred tax expense

(Reversal)/originationoftemporarydifferences (25) 88

Total tax expense 6,812 9,319

Reconciliation of effective tax rate


Total tax expense 6,812 9,319

Profit excluding tax 76,332 73,529



18. taX eXPense (cont’d)

19. eaRnings PeR shaRe

The calculation of basic and diluted earnings per share at 31 December 2011 was based on the profit attributable to

ordinary shareholders of $68,202,000 (2010: $63,812,000) and a weighted average number of ordinary shares

outstanding of 768,319,189 calculated as follows:

The basic and diluted earnings per ordinary share for the years ended 31 December 2011 and 31 December 2010 are

calculatedbasedonthenumberofordinarysharesaftertheissuanceofthebonusshareson1June2011.

group

2011 2010

$’000 $’000

Reconciliation of effective tax rate (cont’d)

TaxusingtheSingaporetaxrateat17%(2010:17%) 12,976 12,500

Effects of tax rates in foreign jurisdiction (5,649) (3,050)

Non-deductible expenses 239 399

Tax exempt income (299) (470)

Overprovision in prior years (433) (93)

Deferred tax assets not recognised (22) -

Others - 33

6,812 9,319

group

2011 2010

$’000 $’000

Profit attributable to ordinary shareholders 68,202 63,812

number of shares

number of shares

’000 ’000

Issued ordinary shares at beginning of the year 698,472 698,472

Effectofbonussharesissuedon1June2011 69,847 69,847

Weightedaveragenumberofordinarysharesduringtheyear 768,319 768,319

Basicanddilutedearningspershare(cents) 8.88 8.31



20. oPeRating segments

TheGrouphasfourreportablesegments,asdescribedbelow,whicharetheGroup’sstrategicbusinessunits.Thestrategic

businessunitsofferdifferentproductsandservices,andaremanagedseparately.Foreachofthestrategicbusinessunits,

theGroupCEOreviewsinternalmanagementreportsonamonthlybasis.Thefollowingsummarydescribestheoperations

in each of the Group’s reportable segments:

REITs: Provision of fund management services to real estate investment trusts

Private real estate funds: Provision of fund management services to private real estate funds and

specialistequityfunds

Real estate management services: Provision of property management services and convention and exhibition services

Investment holdings: Investing in a portfolio of listed securities in REITs and a real estate fund manager

andunlistedequityinvestmentinprivaterealestatefunds

Otherscompriseprimarilycorporatefinanceadvisoryserviceswhichdonotmeetanyof thequantitative thresholds for

determiningreportablesegmentin2011or2010.

Information regarding the results of each reportable segment is included below. Performance is measured based on

segmentprofitbeforetax,asincludedintheinternalmanagementreportsthatarereviewedbytheGroupCEO.Segment

profit is used to measure performance as management believes that such information is the most relevant in evaluating the

resultsofcertainsegmentsrelativetootherentitiesthatoperatewithintheseindustries.Inter-segmentpricingisdetermined

onanarm’slengthbasis.



20. oPeRating segments (cont’d)

information about reportable segments

ReitsPrivate real estate

funds

Real estate management

servicesinvestment

holdings others total

2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

External revenues

60,259 63,553 40,424 26,660 13,298 13,570 8,780 7,645 - 1,083 122,761 112,511

Inter-segment revenue

- - - - - - - - 8,878 6,887 8,878 6,887

60,259 63,553 40,424 26,660 13,298 13,570 8,780 7,645 8,878 7,970 131,639 119,398

Interest expense

(17) (46) - - - - (411) (825) - - (428) (871)

Depreciation (321) (302) (2) (8) (154) (60) - - (101) (96) (578) (466)

Reportable segment profit before tax

31,708 41,683 26,623 17,501 6,739 6,910 8,861 4,959 110 3,231 74,041 74,284

Share of profit of associates, net of tax

2,300 170 - - 494 286 - - - - 2,794 456

Reportable segment assets

47,094 45,300 12,924 9,345 15,637 14,488 134,344 148,254 1,454 3,179 211,453 220,566

Investment in associates

2,565 733 - - 535 327 - - - - 3,100 1,060

Capital expenditure

121 717 - 6 291 293 - - 32 2 444 1,018

Reportable segment liabilities

3,244 5,718 3,588 3,518 6,802 6,556 2,781 21,721 1,044 1,677 17,459 39,190




Reconciliations of reportable segment revenues, profit or loss, assets and liabilities and other material

items of the group

geographical segments

The Group’s business is managed in four principal geographical areas, namely, Singapore, Hong Kong, Malaysia

andOthers.

In presenting information on the basis of geographical segments, segment revenue is based on the geographical

locationofcounterparties.Segmentassetsarebasedonthegeographicallocationoftheassets.

2011 2010

$’000 $’000

Revenue

Total revenue for reporting segments 122,761 111,428

Other revenue 8,878 7,970

131,639 119,398

Elimination of inter-segment revenue (8,878) (6,887)

Revenue 122,761 112,511

Profit or (loss)

Total profit for reportable segments 73,931 71,053

Other profit or loss 110 3,231

74,041 74,284

Unallocated amounts:

- Other corporate expenses (503) (1,211)

Share of profit of associates, net of tax 2,794 456

Profit before tax 76,332 73,529

assets

Total assets for reportable segments 209,999 217,387

Other assets 1,454 3,179

211,453 220,566

Investments in associates 3,100 1,060

Total assets 214,553 221,626

Liabilities

Total liabilities for reportable segments 16,415 37,513

Other liabilities 1,044 1,677

17,459 39,190

Other unallocated liabilities 7,533 8,918

Total liabilities 24,992 48,108




geographical information

21. intangiBLe asset

acquired contractual right

Revenue segment assetsCapital

expenditure

$’000 $’000 $’000

2011

Singapore 92,901 133,004 423

Hong Kong 5,303 4,679 21

Malaysia 1,441 10,907 -

Others 23,116 62,863 -

122,761 211,453 444

2010

Singapore 79,847 143,393 789

Hong Kong 5,256 2,251 226

Malaysia 2,205 28,689 3

Others 25,203 46,233 -

112,511 220,566 1,018

total

group $’000

Cost

At1January2010,31December2010and31December2011 1,450

accumulated amortisation and impairment

At1January2010 -

Amortisation for the year 652

At 31 December 2010 652

Amortisation for the year 798

At 31 December 2011 1,450

Carrying amounts

At1January2010 1,450

At 31 December 2010 798

At 31 December 2011 -



22. DisPosaL oF suBsiDiaRy

InAugust2010,theGroupdivestedallofitsinterestinasubsidiary,ARAStrategicCapitalIPte.Ltd.toAPNFunds

ManagementLimited,theGroup’sstrategicpartnerinAustralia.

The disposal had the following effect on the financial position of the Group:

Therewerenodisposalofanysubsidiaryduringthefinancialyearended31December2011.

23. DeteRmination oF FaiR VaLues

AnumberoftheGroup’saccountingpoliciesanddisclosuresrequirethedeterminationoffairvalue,forbothfinancial

andnon-financialassetsandliabilities.Fairvalueshavebeendeterminedformeasurementand/ordisclosurepurposes

basedonthefollowingmethods.Whenapplicable,furtherinformationabouttheassumptionsmadeindetermining

fairvaluesisdisclosedinthenotesspecifictothatassetorliability.

(i) investments in equity securities

Thefairvaluesofquotedandunquotedinvestmentsthatareclassifiedasavailable-for-saleaswellasquoted

investmentsheld-for-tradingisdeterminedbyreferencetotheirquotedclosingbidpricesatthereporting

date. The fair valueof certainunquoted securities classifiedas available-for-sale isdeterminedusinga

valuationtechnique(seeNote11).

(ii) Loans and receivables

The fair value of loans and receivables is estimated as the present value of future cash flows, discounted at

themarketrateofinterestatthereportingdate.Thisfairvalueisdeterminedfordisclosurepurposes.

(iii) Derivatives

Thefairvalueofforwardexchangecontractsisbasedontheirlistedmarketprice,ifavailable.Ifalisted

market price is not available, then fair value is estimated by discounting the difference between the

contractual forward price and the current forward price for the residual maturity of the contract using a

risk-freeinterestrate(basedongovernmentbonds).

2010

$’000

Officeequipment 6

Cashandcashequivalents 398

Trade and other receivables 42

Trade and other payables (24)

Net identifiable assets and liabilities 422

Gain on disposal of subsidiary 203

Total consideration, satisfied in cash 625

Consideration receivable in cash (203)

Cashandcashequivalentsdisposedof (398)

Net cash inflow 24



23. DeteRmination oF FaiR VaLues (cont’d)

(iv) non-derivative financial liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future

principalandinterestcashflows,discountedatthemarketrateofinterestatthereportingdate.Forfinance

leases,themarketrateofinterestisdeterminedbyreferencetosimilarleaseagreements.

24. oPeRating Leases

Non-cancellable operating leases rentals are payable as follows:

TheGroupleasesanumberofofficesunderoperatingleases.Theleasestypicallyrunforaninitialperiodof2to3

years,withanoptiontorenewtheleaseafterthatdate.

25. CaPitaL Commitments

TheGrouphasacommitmenttoinvestanamountofupto2.0%ofARAAsiaDragonFund’saggregatecommitted

capital as seed capital in the fund. The Group’s undrawn commitment in the fund amounted to US$4.3 million

(equivalentto$5.6million)(2010:US$5.6million(equivalentto$7.2million))at31December2011.

TheGrouphasacommitmenttoinvestUS$100million(equivalentto$129.6million)(2010:Nil)inARAAsiaDragon

FundII’saggregatecommittedcapitalasseedcapital.Thisamounthasnotbeendrawnasat31December2011.

26. ReLateD PaRties

transactions with key management personnel

Key management personnel compensation

Compensation payable to key management personnel comprised:

group Company

2011 2010 2011 2010

$’000 $’000 $’000 $’000

Within1year 2,300 1,901 - -

Between 1 to 5 years 2,391 4,006 - -

4,691 5,907 - -

group

2011 2010

$’000 $’000

Short-term employee benefits 17,368 10,019

Post-employmentbenefits(includingCPF) 235 152

17,603 10,171



26. ReLateD PaRties (cont’d)

other related party transactions

Other than disclosed elsewhere in the financial statements, significant transactions with related parties at terms agreed

between the parties are as follows:

27. suBsiDiaRies

Arising from a review of the recoverable amount, estimated based on the fair value of the net assets of its net investments

insubsidiaries,animpairmentlossof$756,000(2010:$1,483,000)wasrecognisedbytheCompanyduringtheyear.

Details of significant subsidiaries are as follows:

transaction value for the year ended 31 December

2011 2010

$’000 $’000

Entities subject to common significant influence:

- Advisory fee (2,568) (408)

- REIT management fees received/receivable 10,604 9,733

- Distribution received 112 369

- Operating lease expenses paid/payable (828) (990)

Company

2011 2010

$’000 $’000

Equityinvestmentsatcost 62,591 1,744

Shareholder loans to subsidiaries 27,338 95,023

Less: Impairment loss (2,239) (1,483)

87,690 95,284

name of subsidiaryCountry of

incorporation

ownership interest

2011 2010

% %

ARAAssetManagement(Fortune)Limited(1)(2) Republic of Singapore

100 100

ARATrustManagement(Suntec)Limited(1) Republic of Singapore

100 100

ARAAssetManagement(Prosperity)Limited(2) Hong Kong 100 100

ARA-CWTTrustManagement(Cache)Limited(1) Republic of Singapore

60 60

ARA Management Pte Ltd (1) Republic of Singapore

100 100

ARAFundManagement(AsiaDragon)Limited(1) Bermuda 100 100



27. suBsiDiaRies (cont’d)

(1) Audited by KPMG LLP, Singapore.

(2) Audited by other member firms of KPMG International.

(3) Not required to be audited by law of country of incorporation.

KPMG LLP is the auditor of all significant Singapore-incorporated and Bermuda-incorporated subsidiaries. Other

member firms of KPMG International are auditors of significant foreign-incorporated subsidiaries except for subsidiaries

incorporatedintheBritishVirginIslands(“BVI”)whicharenotrequiredtobeauditedunderBVIlaws.Forthispurpose,

a subsidiary is considered significant as defined under the Singapore Exchange Limited Listing Manual if its net tangible

assetsrepresent20%ormoreoftheGroup’sconsolidatednettangibleassets,orifitspre-taxprofitsaccountfor20%

ormoreoftheGroup’sconsolidatedpre-taxprofits.

Theshareholders’loantosubsidiariesareunsecuredandinterest-freewithnospecifiedrepaymentdate.Thesettlement

oftheamountisneitherplannednorlikelytooccurintheforeseeablefuture.Astheamountis,insubstance,apartof

theCompany’snetinvestmentinthesubsidiaries,itisstatedatcost.

name of subsidiaryCountry of

incorporation

ownership interest

2011 2010

% %

ARAManagers(AsiaDragon)PteLtd(1) Republic of Singapore

100 100

JadelineCapitalSdnBhd(2) Malaysia 100 100

ARA Real Estate Investors I Limited (3) British Virgin Islands

100 100

ARA Investors II Limited (3) British Virgin Islands

100 100

ARA Real Estate Investors III Limited (3) British Virgin Islands

100 100

ARA Real Estate Investors IV Limited (3) British Virgin Islands

100 100

ARA Real Estate Investors V Limited (3) British Virgin Islands

100 100

ARAManagers(Harmony)PteLtd(1) Republic of Singapore

100 100

Suntec Singapore International Convention & Exhibition Services Pte Ltd (1)

Republic of Singapore

100 100

APM Property Management Pte Ltd (1) Republic of Singapore

100 100



1 inteResteD PeRson tRansaCtions

The aggregate value of transactions entered into by the Group with interested persons and their affiliates, as defined

intheSGXListingManual,areasfollows:

(1) A wholly-owned subsidiary of Cheung Kong (Holdings) Limited

SUPPLEMENTARY INFORMATION(SGXListingManualdisclosurerequirements)

aggregate value of all transactions conducted under a shareholders’ mandate pursuant to Rule 920 of

the sgX Listing manualaggregate value of

all other transactions

2011 2010 2011 2010

$’000 $’000 $’000 $’000

name of interested person

Fortune REIT

- REIT management fees 10,604 9,733 - -

MrChiuKwokHungJustin

- Key person and strategic advisory services to the ARA Asia Dragon Fund

- - 376 408

TheCenter(55)Limited

- Provision of office space - 2,639 - -

Cosmo Best Limited (1)

- Advisory services to ARA Trust Management(Suntec)Limited

- 10,000 - -

Thesupplementaryinformationabovedoesnotformpartofthefinancialstatements.


2 use oF iPo PRoCeeDs

Asat31December,theGrouphasutilisedthenetIPOproceedsof$75.5millionasfollows:

3 mateRiaL ContRaCts

Save for interested person transactions disclosed in this Annual Report, there are no material contracts involving the

interestsofanyDirectorsorcontrollingshareholdersstillsubsistingduringthefinancialyearasrequiredtobereported

underRule1207(8)oftheListingManual.

SUPPLEMENTARY INFORMATION(SGXListingManualdisclosurerequirements)

Company

2011 2010

$’000 $’000

Seed capital investment in the ARA Asia Dragon Fund 24,723 23,100

Strategic stake in REIT 27,200 27,200

Investment in interest bearing loan to a private fund 8,000 8,000

59,923 58,300

Thesupplementaryinformationabovedoesnotformpartofthefinancialstatements.


SHAREHOLDERS’ INFORMATION As at 12 March 2012

Issued and fully paid-up capital : S$1,536,638

No.ofissuedshares(excludingtreasuryshares) : 768,319,189

Class of shares : Ordinary

Voting rights : One vote per share

DistRiBution oF shaRehoLDings

treasury shares

Number of treasury shares held : NIL

Percentage of treasury shares held against total numberofissuedshares(excludingtreasuryshares) : NIL

List of twenty Largest shareholders

size of shareholdings no. of shareholders % no. of shares %

1 - 999 230 6.52 99,875 0.01

1,000 - 10,000 2,246 63.70 9,287,666 1.21

10,001 - 1,000,000 1,028 29.16 55,101,130 7.17

1,000,001 and above 22 0.62 703,830,518 91.61

total 3,526 100.00 768,319,189 100.00

no. name no. of shares %

1. JLInvestmentGroupLimited 280,027,440 36.45

2. Cheung Kong Investment Company Limited 120,011,760 15.62

3. DBS Nominees Pte Ltd 86,501,564 11.26

4. Citibank Nominees Singapore Pte Ltd 78,492,501 10.22

5. HSBC(Singapore)NomineesPteLtd 60,031,840 7.81

6. United Overseas Bank Nominees Pte Ltd 20,222,302 2.63

7. DBSN Services Pte Ltd 13,384,277 1.74

8. DBSVickersSecurities(Singapore)PteLtd 9,944,960 1.29

9. RafflesNominees(Pte)Ltd 5,318,825 0.69

10. BNP PARIBAS SECURITIES SERVICES SINGAPORE 5,027,660 0.65

11. Bank of Singapore Nominees Pte Ltd 4,524,600 0.59

12. UOB Kay Hian Pte Ltd 4,334,460 0.56

13. Yim Chee Chong 3,100,000 0.40

14. DBNominees(Singapore)PteLtd 2,260,420 0.29

15. MorganStanleyAsia(Singapore)SecuritiesPteLtd 2,238,849 0.29

16. WongChengYong 1,406,560 0.18

17. OCBC Securities Private Ltd 1,332,640 0.17

18. Ng Beng Tiong 1,320,000 0.17

19. LowGeokLinJudith 1,230,000 0.16

20. TangWeeLoke 1,188,000 0.15

total 701,898,658 91.32


SHAREHOLDERS’ INFORMATION As at 12 March 2012

suBstantiaL shaRehoLDeRs as at 12 maRCh 2012

(AsrecordedintheRegisterofSubstantialShareholders)

Notes:

(1) Mr Lim Hwee Chiang John has an indirect interest in the 280,027,440 shares of the Company held by JL Investment Group Limited,

which is wholly-owned by him.

He is also deemed interested in the 1,100,000 shares held by Citibank Nominees Singapore Pte Ltd (as nominee of JL Philanthropy

Ltd). The beneficiary of JL Philanthropy Ltd is JL Charitable Settlement and Mr Lim is the settlor of JL Charitable Settlement.

(2) Cheung Kong (Holdings) Limited has an indirect interest in the shares of the Company held through its wholly-owned subsidiary,

Cheung Kong Investment Company Limited.

PuBLiC shaRehoLDeRs

Asat12March2012,approximately38.9%oftheCompany’sissuedordinaryshares(excludingTreasuryShares)areheldin

thehandsofthepublic.Rule723oftheListingManualoftheSingaporeExchangeSecuritiesTradingLimitedhasaccordingly

beencompliedwith.

name of substantial shareholders Direct interest % Deemed interest %

JLInvestmentGroupLimited 280,027,440 36.45 - -

LimHweeChiangJohn(1) 4,651,660 0.61 281,127,440 36.59

Cheung Kong Investment Company Limited 120,011,760 15.62 - -

CheungKong(Holdings)Limited(2) - - 120,011,760 15.62

Matthews International Funds 48,082,100 6.26 - -

Matthews International Capital Management, LLC - - 62,780,300 8.17


NOTICE OF ANNUAL GENERAL MEETING

NOTICEISHEREBYGIVENthattheAnnualGeneralMeetingofARAASSETMANAGEMENTLIMITED(the“Company”)willbe

held at Room 325 and 326, Level 3, Suntec Singapore International Convention and Exhibition Centre, 1 Raffles Boulevard,

SuntecCity,Singapore039593,onThursday,26April2012at10.00a.m.forthefollowingpurposes:

as oRDinaRy Business

1. To receive and adopt the Directors’ Report and the Audited Accounts of the Company for the financial year ended 31

December2011togetherwiththeAuditors’Reportthereon. (Resolution 1)

2. Todeclareafinaltaxexempt(one-tier)dividendofS$0.027pershareforthefinancialyearended31December2011

(2010:S$0.025pershare). (Resolution 2)

3. Tore-electthefollowingDirectorsretiringpursuanttoBye-law86(1)oftheCompany’sBye-laws:

(i) LimHweeChiangJohn (Resolution 3)

(ii) IpTakChuenEdmond (Resolution 4)

(iii) LeeYockSuan (Resolution 5)

Mr Lee Yock Suan will, upon re-election as Director of the Company, remain as Chairman of the Audit Committee and

will be considered independent for the purposes of Rule 704(8) of the Listing Manual of the Singapore Exchange

Securities Trading Limited.

4. To approve the payment of Directors’ fees of S$490,000 for the financial year ending 31 December 2012, to be paid

quarterlyinarrears(2011:S$280,000).

Note: Mr Chiu Kwok Hung Justin, Mr Ip Tak Chuen Edmond and Mr Lim Hwee Chiang John, have informed the

Company of their intention to waive their entitlement to the Directors’ fees of S$70,000 each.

The Directors’ fees payable for FY2012 would therefore be S$280,000 (2011: S$280,000). (Resolution 6)

5. Tore-appointKPMGLLPastheCompany’sAuditorsandtoauthorisetheDirectorstofixtheirremuneration.

(Resolution 7)

6. TotransactanyotherordinarybusinesswhichmayproperlybetransactedatanAnnualGeneralMeeting.



as sPeCiaL Business

To consider and if thought fit, to pass the following resolutions as Ordinary Resolutions, with or without any modifications:

7. share issue mandate

ThatpursuanttoRule806oftheListingManualoftheSingaporeExchangeSecuritiesTradingLimited(“SGX-ST”),the

Directors of the Company be empowered to:

(a) (i) issue shares in the capitalof theCompany (“Shares”)whetherbywayof rights,bonusorotherwise;

and/or

(ii) makeorgrantoffers, agreementsoroptions (collectively,“Instruments”) thatmightorwould require

Shares tobe issued, includingbutnot limited to thecreationand issueof (aswellasadjustments to)

options, warrants, debentures or other instruments convertible into Shares,

at any time and upon such terms and conditions and for such purposes and to such persons as the Directors of the

Company may in their absolute discretion deem fit; and

(b) (notwithstanding theauthority conferredby thisResolutionmayhaveceased tobe in force) issueShares in

pursuance of any Instrument made or granted by the Directors of the Company while this Resolution was in

force,

provided that:

(1) theaggregatenumberofShares(includingSharestobeissuedinpursuanceoftheInstruments,madeorgranted

pursuant to this Resolution) and Instruments to be issued pursuant to this Resolution shall not exceed fifty

percent.(50%)oftheissuedsharecapital(excludingtreasuryshares)oftheCompany(ascalculatedinaccordance

withsub-paragraph(2)below),ofwhichtheaggregatenumberofSharestobeissuedotherthanonaprorata

basis toexistingShareholdersof theCompany shallnotexceed twentyper cent. (20%)of the issued share

capital(excludingtreasuryshares)oftheCompany(ascalculatedinaccordancewithsub-paragraph(2)below);

(2) (subjecttosuchcalculationasmaybeprescribedbytheSGX-ST)forthepurposeofdeterminingtheaggregate

numberofSharesthatmaybeissuedundersub-paragraph(1)above,thepercentageofissuedsharecapitalshall

bebasedontheissuedsharecapital(excludingtreasuryshares)oftheCompanyatthetimeofthepassingof

this Resolution, after adjusting for:

(a) newSharesarisingfromtheconversionorexerciseofconvertiblesecurities;

(b) new Shares arising from the exercise of any share options or vesting of any share awards which are

outstanding or subsisting at the time of the passing of this Resolution; and

(c) anysubsequentbonusissue,consolidationorsubdivisionofShares;



(3) inexercisingtheauthorityconferredbythisResolution,theCompanyshallcomplywiththeprovisionsofthe

ListingManualoftheSGX-STforthetimebeinginforce(unlesssuchcompliancehasbeenwaivedbytheSGX-

ST)andtheBye-lawsoftheCompany;and

(4) unlessrevokedorvariedbytheCompanyinageneralmeeting,suchauthorityshallcontinueinforceuntilthe

conclusion of the next Annual General Meeting of the Company or the date by which the next Annual General

MeetingoftheCompanyisrequiredtobeheld,whicheverisearlier.

[See Explanatory Note (i)] (Resolution 8)

8. Renewal of shareholders’ mandate for interested Person transactions

ThatforthepurposesofChapter9oftheListingManualoftheSGX-ST:

(a) approvalbegivenfortherenewalofthemandatefortheCompany,itssubsidiariesandassociatedcompanies

thatareentitiesatrisk(asthattermisusedinChapter9)oranyofthemtoenterintoanyofthetransactions

falling within the types of Mandated Transactions as described in Appendix A to the Company’s Letter to

ShareholdersandDepositorsdated10April2012(the“Letter”),withanypartywhoisoftheclassofMandated

Interested Persons described in Appendix A to the Letter, provided that such transactions are made on normal

commercial terms and will not be prejudicial to the interests of the Company and its minority shareholders and

in accordance with the guidelines and review procedures set out in Appendix A to the Letter;

(b) authoritybegiventotheDirectorsoftheCompanyand/oranyofthemtocompleteanddoallsuchactsand

things(includingexecutingallsuchdocumentsasmayberequired)astheyand/orhemayconsidernecessary,

desirable or expedient to give effect to this Resolution as they and/or he may think fit; and

(c) suchapprovalshall,unlessrevokedorvariedbytheCompanyinageneralmeeting,continueinforceuntilthe


MeetingoftheCompanyisrequiredtobeheld,whicheverisearlier.

[See Explanatory Note (ii)] (Resolution 9)

9. Renewal of share Purchase mandate

That for the purposes of the Companies Act of Bermuda and otherwise in accordance with the rules and regulations of

theSGX-ST,theDirectorsoftheCompanybeandareherebyauthorised:–



(a) tomakepurchasesorotherwiseacquireissuedsharesinthecapitaloftheCompanyfromtimetotime(whether

bywayofmarketpurchasesoroff-marketpurchasesonanequalaccessscheme)ofuptotenpercent.(10%)of

thetotalnumberofissuedshares(excludingtreasuryshares)inthecapitaloftheCompany(asascertainedas

at the date of this Annual General Meeting of the Company) at the price of up to but not exceeding the

Maximum Price as defined in the Letter to Shareholders and Depositors dated 10 April 2012 and that this

mandate shall, unless revoked or varied by the Company in general meeting, continue in force until the conclusion

of the next Annual General Meeting of the Company or the date by which the next Annual General Meeting of

theCompanyisrequiredbylawtobeheld,whicheverisearlier;and

(b) tocompleteanddoallsuchactsandthings(includingexecutingsuchdocumentsasmayberequired)asthey

mayconsiderexpedientornecessarytogiveeffecttothetransactionscontemplatedbythisResolution.

[See Explanatory Note (iii)] (Resolution 10)

By Order of the Board

Yvonne Choo

Company Secretary

Singapore, 10 April 2012

explanatory notes to Resolutions to be passed –

(i) TheOrdinaryResolution8proposedinitem7above,ifpassed,willempowertheDirectorsoftheCompanyfrom

the date of this Annual General Meeting until the date of the next Annual General Meeting of the Company,

orthedatebywhichthenextAnnualGeneralMeetingoftheCompanyisrequiredtobeheldorsuchauthority

is varied or revoked by the Company in a general meeting, whichever is the earlier, to issue shares, make or grant

instruments convertible into shares and to issue shares pursuant to such instruments, up to a number not

exceeding,intotal,50%ofthetotalnumberofissuedshares(excludingtreasuryshares)inthecapitalofthe

Company,ofwhichupto20%maybeissuedotherthanonapro-ratabasistoexistingshareholdersoftheCompany.

For the purposes of determining the aggregate number of shares that may be issued, the percentage of issued

sharecapitalwillbecalculatedbasedontheissuedsharecapital(excludingtreasuryshares)oftheCompany

at the time this Ordinary Resolution is passed, after adjusting for new shares arising from the conversion or

exercise of any convertible securities, the exercise of any share options or the vesting of any share awards

whichareoutstandingorsubsistingatthetimewhenthisOrdinaryResolutionispassed,andanysubsequent

bonusissueorconsolidationorsubdivisionofshares.

(ii) TheOrdinaryResolution9proposedinitem8above,ifpassed,willrenewthemandatetoallowtheCompany,

its subsidiaries and associated companies that are entities at risk or any of them to enter into the Mandated

Transactionsdescribed inAppendixAtotheLettertoShareholdersandDepositorsdated10April2012(the



“Letter”)withanypartywhoisoftheclassofMandatedInterestedPersonsdescribedinAppendixAtothe

Letter,andwillempowertheDirectorsoftheCompanytodoallactsnecessarytogiveeffecttothemandate.

This authority will, unless revoked or varied by the Company in a general meeting, continue in force until the


MeetingoftheCompanyisrequiredtobeheld,whicheveristheearlier.PleaserefertotheLetterformoredetails.

(iii) TheOrdinaryResolution10proposedinitem9above,ifpassed,willempowertheDirectorsfromthedateofthis

Annual General Meeting until the next Annual General Meeting to repurchase ordinary shares of the Company

bywayofmarketpurchasesoroff-marketpurchasesofupto10%ofthetotalnumberofissuedshares(excluding

treasuryshares) inthecapitaloftheCompanyattheMaximumPrice. Informationrelatingtothisproposed

ResolutionaresetoutintheLetter.

notes:

1. AShareholderbeingaDepositorwhosenameappearsintheDepositoryRegister(asdefinedinSection130Aofthe

CompaniesAct,Cap.50ofSingapore)isentitledtoappointaproxytoattendandvoteinhis/herstead.Aproxyneed

notbeaMemberoftheCompany.

2. IfaDepositorwishestoappointaproxy/proxiestoattendtheMeeting,thenhe/shemustcompleteanddepositthe

Depositor Proxy Form at the office of the Singapore Share Transfer Agent, Boardroom Corporate & Advisory Services

Pte.Ltd.at50RafflesPlace#32-01,SingaporeLandTower,Singapore048623,atleastforty-eight(48)hoursbefore

thetimeoftheMeeting.

3. IftheDepositorisacorporation,theinstrumentappointingaproxymustbeexecutedundersealorthehandofitsduly

authorisedofficerorattorney.


NOTICEISHEREBYGIVENthattheShareTransferBooksandRegisterofMembersofARAASSETMANAGEMENTLIMITED(the

“Company”)willbeclosedat5.00p.m.on7May2012forthepreparationofdividendwarrants.

Duly completed registrable transfers received by the Company’s Share Transfer Agent, Boardroom Corporate & Advisory

ServicesPte.Ltd.at50RafflesPlace#32-01,SingaporeLandTower,Singapore048623upto5.00p.m.on7May2012will

beregisteredtodetermineshareholders’entitlementstothesaiddividend.MemberswhoseSecuritiesAccountswithThe

CentralDepository(Pte)Limitedarecreditedwithsharesat5.00p.m.on7May2012willbeentitledtotheproposeddividend.

Payment of the dividend, if approved by shareholders at the Annual General Meeting to be held on 26 April 2012 will be made

on22May2012.

NOTICE OF BOOKS CLOSURE


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A R A A S SE T M A N AG EMEN T LIMIT ED

A n n u A l R e p o R t 2 0 1 1

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