MANAGEMENT SOLUTION

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MANAGEMENT SOLUTION
June 30, 2006
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  ??????????????? Property Management ??? Asset
  Management
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  (Outsourcing)
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OUTSOURCING SERVICES
June 30, 2004
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Outsourcing Services

• Our Services

Your Benefits

• Account management
• Budget and financial management
• Lease administration and management
• Portfolio planning
• Capital works Co-ordination
• Procurement and Contract Management
• Scheduled and unscheduled Maintenance
• Operational Risk Management

• Reduced capital requirements and occupancy costs,
  improved productivity and client amenity
• A strategic partner acting exclusively in your
  interests
• Improved reliability of building performance and
  services reduced risks
• Improved schedules and unscheduled maintenance
  management
• Consistent standards and service delivery across
  accounts
• A safe working environment

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Property Management Approach - Methodology

• Formulate Strategy
• Improve Client Services Through Integrated IT
  Platform
• Develop Management and Operations Plans
• Develop improvement Plan to Achieve Higher
  Revenue
• Optimize Organization and Staffing
• Maximize Staff Productivity
• Maximize Contractor Productivity
• Implement Cost Savings Measures
• Measure and Monitor Results

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SCOPE OF SERVICES
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Transition Management

• Arrangement of staff transition / phase-in
• Acquisition of property information and
  documentation
• Represent the owner/investor for all management
  matters
• Formulate the correct reporting schedule
• Review of leasing terms and conditions
• Establishment of Contracts and Service Provision
• Review occupational Health Safety
• Review current contractor maintenance systems

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Transition Management (Contd)

• Review existing operating budget
• Review existing security service providers and
  contracts including cleaning, landscaping and
  pest control
• Developing plans and preparing budget for
  building improvements including minor repairs,
  etc.
• Gather financial information and documentation
• Hold progress meeting or report to the owner

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PROPERTY MANAGEMENT
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Property Management

• To ensure value over the length of the investment
• Building handover management
• Defect inspection and rectification management
• Inventory management control
• Preventative maintenance schedule and planning
• Management documentation
• Operational cost saving management
• Building improvements
• Tenancy management
• Financial management
• Lease administration

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Delivery - Tenancy Management

• General Tenancy Advice
• Lease Renewal / Rent Review / New Leases
• Premises Reinstatement / Takeover
• Tenancy Administration / Coordination
• Critical Information Review and Action
• Tenancy Management Program
• Tenant Retention Program
• Rental Collection

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Delivery - Financial Management

• Budget Planning
• Rental Management Fees Collection
• Settlement of Accounts
• Financial Control / Reports
• Cost Audit / Benchmark

Financial Reports
Accounts Payable
Critical Information
Accounts Receivable
ACCPAC
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Delivery - Operational Management

• Planned Preventive Maintenance Program
• Cost Management
• Operational Performance/ Benchmarking
• Capital Works Planning
• Procurement Contracts Management
• 24 Hour On-Call Service

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Delivery - Technical Service Department

• SPECIALIZED SERVICES
• Building Condition Reports
• Building Inspection Checklists
• Energy Audit Power Monitoring Report
• Develop system to improve operational efficiency
• Preparation of tender specification for equipment
• Supervision coordination of replacement /
  improvement work
• Emergency Technician Team

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Delivery - Risk Management
EMERGENCY PROCEDURES BOOKLET(THAILAND)

• Global Risk Review Mechanism
• e.g. 911, SARS, Bird Flu, Terrorist Threats
• High Level Risk Assessment
• Site Specific Risk Assessment Risk Management
  Plan
• Evacuation Training
• Media Policy
• Debt Management Policy

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Last updated on December, 2005.
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Delivery Measuring Success

• Customer Satisfaction
• Reduce Vacancy Rates
• Efficiency of Financial Administration
• Efficiency of Contract Control Processes
• Cost Effective Procurement of Goods and Services
• Annual Client Survey
• Annual Tenant Survey

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Delivery - Client Reporting

• Regular Meetings
• Operational Management Report
• Tenancy Management Report
• Marketing Agents Reports (Optional)
• Financial Report
• Research Report

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Service Delivery Model in Summary
People, Processes Systems
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Terms of Appointment

• Term 3 years
• Transition Management
• Fee One-off fee
• Full Management
• Staff Cost Baht XXX,XXX per month according to
  Head Count
• Management Fee 5.00-8.00 Baht/Sq.m.(Net minimum
  22,000Sq.m.) per month
• Repair/Renovation Fee 9 of the contract sum
  exceeds Baht 50,000

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Terms of Appointment

• Leasing Fee
• Leasing one months average rent
• Lease Renewal Fee 50 of fee calculated for a
  new lease
• When dealing with 3rd party brokers, the broker
  will get 1 month rental whilst Jones Lang LaSalle
  will charge 25 of a months rental for
  coordination
• Market Rent Review 9 of one months rental
• Market Research Report Free of charge

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ASSET MANAGEMENT
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(No Transcript)
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Strategy
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Maximizing Performance
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Day to Day
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Asset Management Fee

• Fee Base Fee Performance Base

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Pre and Post IPO, Asset and Property Management
Capabilities

• Proposed Services
• Pre IPO Consultancy
• Post IPO Consultancy
• I.T. Consultancy (as part of the Post IPO service
  model)
• Investment Management
• Full Property Management Audit
• Full Management Post IPO, stand alone or in
  conjunction with REIT Manager

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Pre IPO Consultancy (to include the following
disciplines)

• Asset Enhancement Study (an example of scope
  would be)
• Tenants and Occupational Issues
• Physical Design and Layout Issues
• Review the Role and Issues Surrounding Property
  Management
• Review of Business Operations
• Possible Amalgamation of Other Property Interests

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Post IPO Consulting to include the following
disciplines

• Information Technology
• Quarterly Asset Plans
• Schedule of market inputs assumptions
• Financial Modeling
• Financial Forecasting
• Key Performance Indicator Snapshot (KPIs)
• Industry Benchmarking
• Strategic Budget Process
• Portfolio Reporting
• Financial Risk Management

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Investment Management

• Principally advise on identifying and evaluating
  the execution of acquisition/ disposals. The
  advice includes the financing structures for such
  acquisitions and disposals. Other services
  include
• Investor relations (such as advice on
  establishment of corporate communications
  policies and procedures)

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Asset Management/ Property Management Consultancy

• Marketing and leasing strategies in relation to
  such issues as tenant retention, lease structure
  and feasibility and early renewal program
• Setting property specific and portfolio
  performance targets, benchmarks and deliverables
• Setting up processes and systems to monitor
  operational and financial performance of the
  properties, such as tracking of customer traffic
  and tenants' sales, rental arrears management
• Quarterly audit of all assets
• Training
• The training will be carried out on an agreed
  schedule

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Company Property Management Audit

• The completion of a Full Property Management
  Audit to achieve the following
• Review and Comparison to align with Jones Lang
  LaSalle Best Practice
• Quality Assurance
• Customer Satisfaction
• Review of Operational Systems, Process and
  Resources, including security, fire prevention,
  cleaning, landscaping, tenancy management, car
  park management, advertising and promotion,
  maintenance management, procurement system,
  financial system.

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Full Management Post IPO (all of the above
carried out in conjunction with clients team in
partnership or stand alone)

• Asset Management
• Property Management
• Tenancy Management
• Leasing Services
• Lease Administration
• Modeling Cash Flows
• Forecasting
• REIT Standard Reporting
• Customer Service Training and Implementation
• Tenant Retention Programs
• Property Audits
• Risk Management Strategies

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THANK YOU !
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QUESTIONS ANSWERS