FACULTY OF BUILT ENVIRONMENT

DEPARTMENT OF REAL ESTATE

SEMESTER 1, SESSION 2022/2023

BIE2013 - INCOME APPROACH OF REAL ESTATE VALUATION I

LECTURERS:
DR SR AINORIZA BINTI MOHD AINI
ASSOCIATE PROF. DR. SR. ROSLI BIN SAID

GROUP MEMBERS MATRIC NUMBER

KOID WEI HONG U2104599

AMIRUL AIMAN BIN AMIRUL ISKANDAR U2104489

HANI HAZIRAH BINTI MOHD HASBULLAH U2104547

AW YI HUI U2104549

VENICE CHEN XIN EE U2104617

 REPORT AND VALUATION OF
A 7 STOREY SHOPPING COMPLEX

KNOWN AS THE STARLING MALL

6, JALAN SS 21/37, DAMANSARA UTAMA
47400 PETALING JAYA,
SELANGOR, MALAYSIA

HELD UNDER
TITLE NO GRN313147
LOT 60445 SEKSYEN 39
BANDAR PETALING JAYA
DISTRICT OF PETALING
SELANGOR DARUL EHSAN
CLIENT AND INSTRUCTORS

Your Ref : TSM/2022/12

Our Ref : IAV/2022-12/1208

3rd November 2022 PRIVATE AND CONFIDENTIAL

See Hoy Chan Sdn. Bhd.

30B, Jalan Niaga Bestari 7,
Puncak Bestari,
42300 Bandar Puncak Alam,
Selangor.

Dear Sir/Madam,

VALUATION OF A 7 STOREY SHOPPING COMPLEX, HELD UNDER TITLE NO

GRN313147, LOT 60445 SEKSYEN 39, BANDAR PETALING JAYA, STATE OF
SELANGOR (BEARING POSTAL ADDRESS: 6, JALAN SS 21/37, DAMANSARA
UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.)

We refer to the instructions from See Hoy Chan Sdn. Bhd. to assess the market value of the
above captioned property for financing purpose.

2. We have carried out inspection of the property and investigated available data related and
relevant matters. We are pleased to report that in our opinion, the market value of the subject
property free from all encumbrances is RM705,000,000. Our full report and Valuation is
contained herein.

3. We would also wish to refer to Limiting Conditions at the end of this report to govern its
particular use and application. This report is confidential to and for use only by the client
whom it is addressed to and for the specific and particular use to which it refers to.

Thank you. Yours faithfully,

KOID WEI HONG

Sr. KOID WEI HONG

Registered Valuer (V8820)
KAHVY Valuers Sdn. Bhd.
SUMMARY OF SALIENT FACTS AND OPINION

Our references : IAV/2022-12/1208

Your References : TSM/2022/12
Client : See Hoy Chan Sdn. Bhd.
30B, Jalan Niaga Bestari 7,
Puncak Bestari,
42300 Bandar Puncak Alam,
Selangor.
Purpose of Valuation : Financing purpose
Subject Property : The Starling Mall
Title No. : GRN313147
Lot No. : Lot 60445 Seksyen 39
Mukim : Bandar Petaling Jaya
District : Petaling
State : Selangor
Land Area : 47690 square metres / 513,330.89 square feet
Tenure : Term in perpetuity
Category of Land Use : Building
Registered Owner : Damansara Uptown Holdings Sdn Bhd
Damansara Uptown Retail Centre Sdn Bhd
Damansara Uptown Seven Sdn Bhd
Expressed Condition : Commercial Building
Restriction in interest : NIL
Encumbrances : Being charged to:
Tenaga Nasional Berhad
Public Investment Bank Berhad
Endorsement : Private Caveat (2013) - Public Bank Berhad
Private Caveat (2018) - Public Bank Berhad
Private Caveat (2019) - Public Bank Berhad
Date of Valuation : 12th November 2022
Date of Inspection : 12th November 2022
Market Value : RM705,000,000
 TABLE OF CONTENTS

1.0 TERMS OF REFERENCES ......................................................................................... 1

2.0 SUBJECT OF VALUATION ....................................................................................... 1
3.0 PURPOSE OF VALUATION .......................................................................................1
4.0 DATE OF INSPECTION ..............................................................................................1
5.0 DATE OF VALUATION ..............................................................................................1
6.0 DEFINITION OF MARKET VALUE ..........................................................................2
7.0 PARTICULARS OF TITLE ......................................................................................... 5
8.0 LOCATION OF PROPERTY ....................................................................................... 6
9.0 DESCRIPTION OF PROPERTY ................................................................................. 7
10.0 NEIGHBOURHOOD OF SUBJECT PROPERTY .................................................. 12
11.0 OCCUPANCY STATUS .......................................................................................... 12
12.0 REPAIRS AND MAINTENANCE ...........................................................................12
13.0 PUBLIC UTILITIES AND SERVICES ................................................................... 13
14.0 PLANNING PROVISION ........................................................................................ 13
15.0 MARKET ANALYSIS ............................................................................................. 14
16.0 BASIS OF VALUATION ......................................................................................... 24
17.0 METHODS OF VALUATION ................................................................................. 24
18.0 ADOPTION OF TWO METHODS .......................................................................... 25
18.1 INVESTMENT METHOD ................................................................................ 25
18.2 COMPARISON METHOD ............................................................................... 26
19.0 SALES EVIDENCE OF COMPARABLE PROPERTIES .......................................27
20.0 OPINION OF VALUE ..............................................................................................29
21.0 CERTIFICATION .....................................................................................................29
APPENDICES ...................................................................................................................30
APPENDIX A: DOCUMENT OF TITLE ................................................................. 31
APPENDIX B: TITLE SEARCH .............................................................................. 36
APPENDIX C: LOCATION MAP OF SUBJECT PROPERTY ...............................39
APPENDIX D: LOCATION PLAN OF SUBJECT PROPERTY .............................40
APPENDIX E: NEIGHBOURHOOD PLAN OF SUBJECT PROPERTY .............. 41
APPENDIX F: SITE PLAN OF SUBJECT PROPERTY ......................................... 42
APPENDIX G: ZONING PLAN OF SUBJECT PROPERTY ..................................43
APPENDIX H: FLOOR PLAN OF SUBJECT PROPERTY ....................................44
APPENDIX I: GENERAL VIEW OF SUBJECT PROPERTY ................................51
APPENDIX J: INTERNAL VIEW OF SUBJECT PROPERTY .............................. 54
APPENDIX K: PUBLIC UTILITIES AROUND THE SUBJECT PROPERTY ......57
APPENDIX L: COMPARABLE PLAN ....................................................................59
APPENDIX M: LIST OF TENANTS ....................................................................... 60
APPENDIX N: INVESTMENT METHOD .............................................................. 74
APPENDIX O: COMPARISON METHOD ..............................................................82
APPENDIX P: PERCENTAGE OF DIFFERENCE ................................................. 89
APPENDIX Q: DECLARATION BY VALUER ......................................................90
APPENDIX R: LIMITING CONDITIONS .............................................................. 91
APPENDIX S: MEETING MINUTES ......................................................................96
 LIST OF FIGURES

Figure 1: Total Existing Space and Occupancy Rate of Shopping Complex H1 2019 to
H1 2022 ..................................................................................................................... 14
Figure 2: Space Availability and Availability Rate of Shopping Complex H1 2019 to H1
2022 ........................................................................................................................... 16
Figure 3: Shopping Centre Rental Index & Annual Growth of Klang Valley, WP Kuala
Lumpur and Selangor Q2 2022P ............................................................................... 19
Figure 4: Klang Valley SC-RI Neighbourhood Centre & Annual Growth Q2 2022P ......20
Figure 5: Average Rental of Shopping Centre (RM p.s.m) in Klang Valley, WP Kuala
Lumpur and Selangor Q1 2022 to Q2 2022P ............................................................ 22

LIST OF TABLES

Table 1: Summary of Space Occupied in Shopping Complex H1 2019 to H1 2022 ........ 15

Table 2: Summary of Available Space in Shopping Complex H1 2019 to H1 2022 ........17
Table 3: Summary of Occupancy Rate in Shopping Complex H1 2021 to H1 2022 ........18
1.0 TERMS OF REFERENCES
We have been instructed by See Hoy Chan Sdn. Bhd. to assess the market value of
the interest of The Starling Mall for financing purpose, which is built on part of land
which held under Title No GRN313147, Lot 60445 Seksyen 39, Bandar Petaling Jaya,
District of Petaling, Selangor Darul Ehsan. (hereinafter referred as “subject property”).
We hereby submit our report and valuation which is prepared in accordance with the
regulated general principles of valuation and limiting conditions attached to this
report.

2.0 SUBJECT OF VALUATION

The subject property of a term in perpetuity interest, The Starling Mall for financing
purpose, which is built on a part of of land which held under Title No GRN313147,
Lot 60445 Seksyen 39, Bandar Petaling Jaya, District of Petaling, Selangor Darul
Ehsan. (hereinafter referred as “subject property”).

3.0 PURPOSE OF VALUATION

The valuation is intended for financing purposes.

4.0 DATE OF INSPECTION

The property was inspected by Sr Koid Wei Hong, Sr Amirul Aiman Bin Amirul
Iskandar, Sr Hani Hazirah Binti Mohd Hasbullah, Sr Aw Yi Hui, and Sr Venice Chen
Xin Ee on 12th of November 2022.

5.0 DATE OF VALUATION

The date of valuation is the same as the date of inspection which is on 12th of
November 2022.

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6.0 DEFINITION OF MARKET VALUE
“Market Value” is the estimated amount for which an asset or liability should
exchange on the valuation date between a willing buyer and a willing seller in an
arm’s length transaction after proper marketing and where the parties had each acted
knowledgeably, prudently and without compulsion.

Each element of the definition has its own conceptual framework as follows
according to Malaysia Valuation Standard 6th Edition:

(a) “the estimated amount…” refers to a price expresses in terms of money payable
for the asset in an arm’s length transaction. Market Value is the most probable price
reasonably obtainable in the market on the valuation date in keeping with the market
value definition. It is the best price reasonably obtainable by the buyer. The estimate
specifically excludes an estimated price inflated or deflated by special terms or
circumstances such as atypical financing, sale and leaseback arrangements special
considerations or concession granted by anyone associated with the sale, or any
element of value available only to a specific owner or purchaser.

(b) “…an asset should exchange…” refers to the fact that the value of an asset or
liability is an estimated amount rather than a predetermined amount or the actual sale
price. It is the price in a transaction that meets all the elements of the Market Value
definition at the valuation date.

(c) “…on the valuation date…” requires that the value is time-specific as of given
date. Because markets and market conditions may change, the estimated value may be
incorrect or inappropriate at another time. The valuation amount will reflect the
market state and circumstances as the valuation date, not those at any other date.

2
(d) “…between a willing buyer…” refers to one who is motivated, but not compelled
to buy. This buyer is neither over eager nor determined to buy at any price. This
buyer is also the one who purchases in accordance with the realities of the current
market and with current market expectations, rather than in relation to an imaginary
or hypothetical market that cannot be demonstrated or anticipated to exist. The
assumed buyer would not pay a higher price than the market requires. The present
owner is included among those who constitute “the market”.

(e) “…a willing seller…” is neither an over eager nor a forced seller prepared to sell
at any price, nor one prepared to hold out for a price not considered reasonable in the
current market. The willing seller is motivated to sell the asset at market terms for the
best price attainable in the open market after proper marketing, whatever the price
may be. The factual circumstances of the actual owner are not a part of this
consideration because the willing seller is hypothetical owner.

(f) “…in an arm’s length transaction” is one between parties who do not have a
particular or special relationship e.g., parent and subsidiary companies or landlord
and tenant that may make the price level uncharacteristic of the market or inflated.
The Market Value transaction is presumed to be between unrelated parties, each
acting independently.

(g) “…after proper marketing…” means that the asset has been exposed to the market
in the most appropriate manner to effect its disposal at the best price reasonably
obtainable in accordance with the Market Value definition. The method of sale is
deemed to be that most appropriate to obtain the best price in the market to which the
seller has access. The length of exposure time is not a fixed period but will vary
according to the type of asset and market conditions. The only criterion is that there
must have been sufficient time to allow the asset be brought to the attention of an

3
adequate number of market participants. The exposure period occurs prior to the
valuation date.

(h) “…where the parties had each acted knowledgeably, prudently…” presumes that
both the willing buyer and the willing seller are reasonably informed about the nature
and characteristics of the asset, its actual and potential uses, and the state of the
market as of the valuation date. Each is further presumed to use that knowledge
prudently to seek the price that is the most favourable for their respective positions in
the transaction. Prudence is assessed by referring at the state of the market at the
valuation date, not with benefit of hindsight at some later date. For example, it is not
necessarily imprudent for a seller to sell assets in a market with falling prices at a
price that is lower than previous market levels. In such cases, as is true for other
exchanges in markets with changing prices, the prudent buyer or seller will act in
accordance with the best market information available at that time.

(i) “…and without compulsion…” established that each party is motivated to

undertake the transaction, but neither is forced or unduly coerced to complete it.

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7.0 PARTICULARS OF TITLE
The following shows the particulars of title of subject property that was obtained
from Selangor Land and Mines Office (Pejabat Tanah dan Galian Selangor):

Title No. GRN 313147

Lot No. Lot 60445 Seksyen 39

City Bandar Petaling Jaya

District Petaling

State Selangor

Quit Rent RM 157,711

Tenure Term In Perpetuity

Category of land use Building

Registered Land Area 4.769 hectare (47690 square metres)

Registered Owner Damansara Uptown Holdings Sdn. Bhd. (157/826 shares)

Damansara Uptown Retail Centre Sdn. Bhd. (473/826 shares)
Damansara Uptown Seven Sdn. Bhd. (196/826 shares)

Expressed Condition Commercial Building

Restriction in Interest Nil

Encumbrances Charged to:

1. Tenaga Nasional Berhad
2. Public Investment Bank Berhad (2014 & 2019)

Endorsement Private Caveat (2013) - Public Bank Berhad

Private Caveat (2018) - Public Bank Berhad
Private Caveat (2019) - Public Bank Berhad

Certified copy of the land title and title search is attached as Appendix A.

5
8.0 LOCATION OF PROPERTY

The subject property is held under Title No. GRN 313147 identified as Lot No.
60445 Seksyen 39, Bandar Petaling Jaya, District of Petaling, Selangor. The subject
property as shown edged RED on the attached site plan, is addressed at 6, Jalan SS 21/37,
Damansara Utama, 47400 Petaling Jaya, Selangor. The subject property is located in the
Golden Square of Petaling Jaya, known as Damansara Uptown. Geographically, the
subject property is located approximately 8.2 kilometres in the direction of south-east
from the Petaling Jaya City Council (MBPJ).

The subject property is accessible through most major highways, namely

Damansara-Puchong Expressway, New Klang Valley Expressway (NKVE) and SPRINT
Expressway. The subject property front onto Jalan SS 21/37 and is easily accessible via
Jalan Yong Shook Lin, Jalan Selangor, Jalan Sultan, Jalan Barat, Jalan Utara, Jalan
Professor Khoo Kay Kim, Jalan Profesor Diraja Ungku Aziz, Jalan 17/21, Jalan 16/11,
merge onto SPRINT Expressway, exit to Damansara-Puchong Expressway, Jalan SS
21/60, Jalan SS 21/35 and Jalan SS 21/37 from MBPJ leading to the subject property.

The subject property is also accessible via Jalan Yong Shook Lin, Jalan Sultan,
Jalan Barat, Jalan Utara, Jalan Professor Khoo Kay Kim, Jalan Harapan, Jalan 19/8, Jalan
SS 2/24, Jalan SS 2/75, merge onto Damansara-Puchong Expressway, exit to Jalan SS
21/56 and Jalan SS 21/37 from MBPJ leading to the subject property.

The subject property is located inside the box coloured RED on the location map
attached. A location map and location plan are enclosed herewith as Appendix C and
Appendix D respectively for easy reference.

6
9.0 DESCRIPTION OF PROPERTY
Site Description

The subject property is a freehold tenure shopping complex identified as Lot

60445 Seksyen 39, Bandar Petaling Jaya, District of Petaling, Selangor Darul Ehsan. The
subject property addressed at 6, Jalan SS 21/37, Damansara Utama, 47400 Petaling Jaya,
Selangor. It is located in a site which is a commercial lot, irregular in shape with a titled
land area of 47,690 square metres. The site has a direct frontage measuring about 350.57
metres onto Jalan SS 21/37. The subject site is generally flat in terrain and lies at about
the same level as the neighbouring lots. The driveway and site circulation areas are
generally tar-macadamized and laid with interlocking block pavements. The site plan of
the subject property is attached as Appendix F.

Building Description

Erected from the 17,314 square metres (equivalent to 186,374 square feet) of the
site Subject property is a shopping mall, known as The Starling Mall which operates
daily from 10 a.m. to 10 p.m.

The subject property is a 7-storey shopping mall with a total net lettable area of
approximately 460,311.95 square feet which is owned by See Hoy Chan Sdn. Bhd. The
main entrance of the subject property faces Jalan SS 21/37, Damansara Utama. It has a
basement (B1), ground floor (G), first floor (1), second floor (2), third floor (3), fourth
floor (4) and fifth floor (5).

As provided by the car park operation of The Starling Mall, there are a total of
2,093 parking bays from basement level to fourth floor except the ground floor. The car
park of The Starling Mall was managed by See Hoy Chan Sdn. Bhd. which is the owner
of The Starling Mall.

The tenant mix of the Starling Mall comprises hypermarket, food and beverage
stores, beauty and wellness services, information technology outlets, electrical retails,

7
franchises as well as entertainment, amusement and kids’ education centres. This 7-storey
shopping mall is mainly accessible by escalators, elevators and staircases. There are fire
lifts and emergency staircases provided.

Brief description of the building is as of below:

Type Shopping complex

No. of Storeys 7 storey shopping complexes

Framework Reinforced concrete structure

Walls Infilling plastered brick walls painted on all walls

Toilet walls: Glazed ceramic tiles

Roof Waterproof flat roof

Ceilings Concrete slab with exposed lighting, air conditioning ducts, pipes
and water sprinkler system on all floors

Floors Internal flooring: Ceramic tiles

Parking areas: Cement rendered

Doors Entrance doors: Automatic sliding glass door

Toilet Doors: Polyvinyl chloride
Retail spaces: Glass door and roller shutters

Windows Aluminium framed tinted glass panels

8
The net lettable area for each floor is as of below:

Level Net Lettable Area (sqft)

Basement (B1) 52,329.29

Ground (G) 96,203.00

First (1) 62,994.95

Second (2) 80,139.71

Third (3) 45,295.00

Fourth (4) 60,525.00

Fifth (5) 62,825.00

As at the date of inspection, we noted that the building is in new and good condition.

The floor plan of the subject property is attached as Appendix H.

Building Services

Major building services installed within the building are briefly described as below:

a. Air-conditioning System

The subject property is serviced by a centralised air-conditioning system provided by

an extensive ductwork for air distribution of the building. The air-conditioners run
during office hours which is from 10 a.m. until 10 p.m. everyday. The centralised air-
conditioning system turns on all of the air-conditioners in the shopping mall at the
same time.

9
b. Ventilation and Smoke Control System

Subject property has installed mechanical ventilation in mechanical and electrical

rooms, toilets and car park area to enhance the ventilation system within the building.

c. Electrical System

The electrical supply to the subject property is from a TNB sub-station situated at the
basement of the building. Standby power supply is provided and operates
automatically in the event of an emergency power outage and is ready on standby to
temporary provision of power to all essential areas without any undue disruptions.

d. Vertical Movement

The subject property is accessible by lifts, staircases and escalators to all floors. The
escalators are located at the west end, centre and east end of the subject property
respectively on every floor. There are 6 elevators available around the shopping mall
along with staircases accessible to all floors.

e. Fire Protection System

The subject property is designated with the following firefighting services:

1. Water sprinkler system

2. Fire alarm system including break-glass fire alarm and smoke detectors at every
floor
3. Wet and dry risers
4. Hose reels system
5. Portable fire extinguishers
6. Fire control panel
7. Lighted ‘EXIT’ signs
8. Fire escape map
9. Fire rated doors to the lift lobbies and fire escape staircases

10
f. Security System

The security service is managed by their own in-house management team and security
guards are stationed at the entrances, lift lobbies and car parking areas of the shopping
mall. The security guards will patrol at designated routes during their shifts. Closed-
circuit televisions (CCTVs) are installed within the whole building and car parks.

g. Water Supply System

The subject property is supplied with hot and cold-water supply. Water supply is
stored in domestic water tanks and fire-fighting water tanks.

h. Telecommunication

The building is served with a standard telephone service and P.A. system. Telephone
system is linked to the PABX system, facsimile system and broadband system.

11
10.0 NEIGHBOURHOOD OF SUBJECT PROPERTY

The immediate surrounding is developed mainly with shop lots, double-storey

terrace house, high-rise office building and apartment of developer’s standard design and
construction.

The subject property as shown highlighted red in the neighbourhood plan of

subject property. The subject property is located approximately 2.3 kilometres apart from
the health care institution which is KPJ Damansara Specialist Hospital. Notable
landmarks in the neighbourhood of the subject property includes One Utama Shopping
Centre which is approximately 2.6 kilometres away and IKEA Damansara which is
approximately 4.7 kilometres away from the subject property to the direction of north-
west. Besides, Eastin Hotel and Seventeen Mall is located approximately 4.5 kilometres
and 2.6 kilometres respectively in the direction of south-east from the subject property.
The Tropicana Golf and Country Club is located to the west of the subject property which
is approximately 6.3 kilometres away. The subject property is located inside the box
coloured RED on the surroundings of subject property attached which enclosed herewith
as Appendix E.

11.0 OCCUPANCY STATUS

During the inspection, the occupancy rate for The Starling Mall is 94.32%.

12.0 REPAIRS AND MAINTENANCE

Whilst we have carried out a careful building inspection in respect of the structure
of the property, we did not notice any obvious signs of structural defect or dilapidation
which we consider to be a serious nature. The subject property is generally in a good state
of repairs and maintenance during our inspection.

12
13.0 PUBLIC UTILITIES AND SERVICES

It is crucial to provide public utilities and services to the users in commercial

buildings in order to enhance their level of satisfaction effectively. For this purpose,
water and electrical supply systems are essential for the benefits of The Starling Mall.
Without sufficient water and electrical supply, the subject property will be unable to
operate efficiently and systematically.

Essential public utilities such as main water, electricity supplies and

telecommunication facilities are connected to the subject property. The subject property
is under the jurisdiction of Petaling Jaya City Council (Majlis Bandaraya Petaling Jaya)
and municipal services are provided by the Local Authority such as street lighting, road
maintenance, garbage disposal and waste collection are available around the subject
property.

Transportation facilities in the form of bus, MRT and LRT are available within
the vicinity of the subject property. Rapid KL buses such as T784, 800, 780, 802 and
MRT Feeder Bus T813 are accessible to Damansara Uptown. The subject property can be
accessed through the usage of MRT and LRT such as Taman Tun Dr Ismail MRT station
and Kelana Jaya LRT station. In addition, there is also free shuttle bus service provided
by The Starling Mall. The Starling shuttle bus goes from Taman Tun Dr Ismail MRT
station to the Starling and back to Taman Tun Dr Ismail MRT station. Besides, The
Starling shuttle bus goes from Kelana Jaya LRT station to the Starling and back to
Kelana Jaya LRT station. Grab cars and taxis are all readily accessible in the area.
Furthermore, The Starling Mall is also equipped with a high level of security system,
which is guarded with 24-hour security service and 24-hour surveillance with Closed
Circuit Television System (CCTVs) for the safety protection of the mall.

14.0 PLANNING PROVISION

The subject property is categorised under commercial building based on the
zoning enquired at Valuation and Property Management Kuala Lumpur.

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15.0 MARKET ANALYSIS
The table and figure below provide an overview of the space occupied by
shopping complexes across the nation.

Figure 1: Total Existing Space and Occupancy Rate of Shopping Complex H1 2019 to
H1 2022

Source: National Property Information Centre (NAPIC)

14
Type H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022
Total Retail 16,250.08 16,512.47 16,769.15 16,853.68 16,933.87 17,281.74 17,359.23
Space (‘000
s.m.)
Year-on-Year 1.8 1.6 1.6 0.5 0.5 2.1 0.4
Change (%)
Space 12,944.99 13,085.03 13,183.45 13,056.45 12,966.74 13,193.46 13,136.76
Occupied
(‘000 s.m.)
Year-on-Year 2.2 1.1 0.8 -1.0 -0.7 1.7 -0.4
Change (%)

Table 1: Summary of Space Occupied in Shopping Complex H1 2019 to H1 2022

Source: National Property Information Centre (NAPIC)

Based on Figure 1 and Table 1 above, the total retail space of the shopping
complex has been increasing steadily every half year, which is from 16,250.08 square
metres in the first half of 2019 (H1 2019) to 17,359.23 square metres in the first half of
2022. The increment of total retail space is not more than 3% every six months. However,
the total space occupied has decreased slightly twice during 2 different periods. The two
periods are H1 2020 to H1 2021 and H2 2021 to H1 2022. It decreased 216.71 square
metres (1.7%) and 56.7 square metres (0.4%) respectively. The occupancy rate is in a
descending order as it dropped from 79.7% in H1 2019 to 75.7% in H1 2022.

15
Figure 2: Space Availability and Availability Rate of Shopping Complex H1 2019 to H1
2022

Source: National Property Information Centre (NAPIC)

16
Type H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022
Total Retail 16,250.08 16,512.47 16,769.15 16,853.68 16,933.87 17,281.74 17,359.23
Space (‘000
s.m.)
Year-on-Year 1.8 1.6 1.6 0.5 0.5 2.1 0.4
Change (%)
Available 3,305.09 3,427.44 3,585.70 3,797.24 3,967.12 4,088.28 4,222.47
Space (‘000
s.m.)
Year-on-Year 0.0 3.7 4.6 5.9 4.5 3.1 3.3
Change (%)

Table 2: Summary of Available Space in Shopping Complex H1 2019 to H1 2022

Source: National Property Information Centre (NAPIC)

The availability rate showed a slight increase to 24.3% in line with the increasing
retail space against 20.3% recorded in H1 2019. Selangor had the highest area of retail
space in the country, accounting for 21.9% (3.8 million s.m.) of the total existing space.
In terms of availability rate, the country saw a significant increase of available retail
space at 4.22 million s.m. as compared to 3.30 million s.m. (H1 2019). In H1 2022,
Selangor stood at the top of the total available space list, contributing 846,900 s.m.,
followed by Johor (677,820 s.m.), Kuala Lumpur (602,800 s.m.) and Pulau Pinang
(529,210 s.m.).

17
 State Occupancy Rate (%) Increase/Decrease
H1 2021 H1 2022 by (%)
WP Kuala Lumpur 81.6 81.6 -
WP Putrajaya 80.5 85.8 +5.3
WP Labuan 96.5 97.3 +0.8
Selangor 78.8 77.7 -1.1
Johor 73.4 72.2 -1.2
Pulau Pinang 72.2 71.5 -0.7
Perak 84.5 76.4 -8.1
Negeri Sembilan 66.3 67.1 +0.8
Melaka 63.3 62.5 -0.8
Kedah 74.6 73.1 -1.5
Pahang 71.8 71.5 -0.3
Terengganu 78.5 78.8 +0.3
Kelantan 80.1 80.6 +0.5
Perlis 88.4 81.6 -6.8
Sabah 77.9 75.6 -2.3
Sarawak 74.7 76.3 +1.6
Malaysia 76.6 75.7 -0.9

Table 3: Summary of Occupancy Rate in Shopping Complex H1 2021 to H1 2022

Source: National Property Information Centre (NAPIC)

The occupancy rate for retail space in shopping complexes has decreased from
76.6% in the first half of 2021 (H1 2021) to 75.7% in the first half of 2022. The National
Property Information Centre (NAPIC), which just released data for the first half of 2022,
revealed that the occupancy of retail malls decreased in 9 of the states in Malaysia. These
9 states are Selangor (-1.1%), Johor (-1.2%), Pulau Pinang (-0.7%), Perak (-8.1%),
Melaka (-0.8%), Kedah (-1.5%), Pahang (-0.3%), Perlis (-6.8%) and Sabah (-2.3%).

18
Among them, Perak and Perak recorded the most drastic decline in occupancy rate, where
both states dropped 8.1% and 6.8% respectively.

However, 6 states and federal territories have seen an increase in the occupancy of
retail mall space, namely Putrajaya (+5.3%), Labuan (+0.8%), Negeri Sembilan (+0.8%),
Terengganu (+0.3%), Kelantan (+0.5%) and Sarawak (+1.6%). According to the data
above, Putrajaya experienced the most growth in the occupancy rate, going from 80.5%
to 85.8%, an increase of 5.3%. The remaining state, Kuala Lumpur remained the same in
retail mall space occupancy rate which is 81.6% during the period of H1 2021 to H1 2022.

According to NAPIC, the number of buildings with more than 50% vacancy rate
decreased 3.59%, from 195 malls one year ago to 188 malls in H1 2022. On the other
hand, the total number of buildings with available retail space spiked 5.38%, from 790
buildings in H1 2021 to 815 buildings in H1 2022.

Figure 3: Shopping Centre Rental Index & Annual Growth of Klang Valley, WP Kuala
Lumpur and Selangor Q2 2022P

Source: National Property Information Centre (NAPIC)

19
 Figure 3 shows the rental index movement of Klang Valley, Kuala Lumpur and
Selangor in Q1 2015 - Q2 2022P. Klang Valley SC-RI increased by 5.06% from 102.8
points in Q3 2017 to 108.0 points in Q2 2022P. WPKL grew by 6.28% from 103.5 points
in Q3 2017 to 110.0 points in Q2 2022P. On the other hand, Selangor recorded a lower
growth of 4.68% at 107.4 points compared to 102.6 points in Q3 2017.

According to the Shopping Centre Rental Index (SC-RI) above, both states shared
the same quarterly growth at -0.1% in Q2 2021 and began to recover from Q3 2021.
Wilayah Persekutuan Kuala Lumpur saw an increase of 1.0% in Q1 2022 and a lower
0.5% in Q2 2022P whereas Selangor recorded a 0.4% drop in Q1 2022 but picked up by
0.1% growth in the subsequent quarter. At Q2 2022P, Selangor recorded a higher average
rent at RM106.28 p.s.m. while Kuala Lumpur registered at RM85.73 p.s.m., which
analysed at RM95.79 p.s.m. for Klang Valley.

Figure 4: Klang Valley SC-RI Neighbourhood Centre & Annual Growth Q2 2022P

Source: National Property Information Centre (NAPIC)

20
 Generally, there are 4 types of shopping centres, which are super regional,
regional centre, neighbourhood centre and community centre. As the net lettable area of
The Starling Mall is around the range of 200,001 to 500,000 square feet (460,311.95
square feet), it is classified as a neighbourhood centre. Therefore, the figure above shows
the rental index movement of neighbourhood centres in Klang Valley, Kuala Lumpur and
Selangor during the period of Q1 2015 to Q2 2022P.

Neighbourhood centre has a wider range of apparel and other discretionary retail
with a heavy focus on foods & groceries, and other essential products. The
Neighbourhood Centre Rental Index (NC-RI) grew marginally at 1.1% year-on-year as at
Q2 2022P. Kuala Lumpur’s NC performed better than Selangor, which rose by 2.7% as
compared to 0.3%. On a quarterly basis, Kuala Lumpur managed to sustain growth
though at a low rate, but Selangor saw otherwise, contracted for two consecutive quarters.
As for the average rental, Selangor recorded a higher rate at RM84.15 p.s.m. as compared
to WPKL at RM55.05 p.s.m.

The average rental of shopping centres in Klang Valley, Kuala Lumpur and
Selangor are shown in Figure 5 below.

21
 Figure 5: Average Rental of Shopping Centre (RM p.s.m) in Klang Valley, WP Kuala
Lumpur and Selangor Q1 2022 to Q2 2022P

Source: National Property Information Centre (NAPIC)

The average rental of a shopping centre in Selangor was greater than Kuala
Lumpur, which was at RM106.28 per s.m. compared to RM85.73 per s.m. in Q2 2022P.
As for the Klang Valley’s Neighbourhood Centre Rental Index, the overall rental for
Selangor was RM84.15 per s.m., followed by Wilayah Persekutuan Kuala Lumpur led
with an average rental of RM55.05 per s.m., which is higher by RM29.10 per s.m.
compared to that of Wilayah Persekutuan Kuala Lumpur. The annual changes for the
average rental of shopping centres in Klang Valley, Kuala Lumpur and Selangor has not
exceeded 3% during the period of Q2 2021 to Q2 2022P.

22
Property Market Scenario

Our subject property is a commercial shopping complex located at Selangor.

Although we can see that the pandemic situation in Malaysia is getting better currently,
but this improvement has not been reflected in the real estate market. In 2020, the
COVID-19 pandemic made a significant effect on the real estate market by decreasing
the average occupancy rate of shopping center in Malaysia, which was dropped to 75.7%
at the first half of 2022, down from 78.6% two year earlier because of the increment of
new spaces that came on to the market.

However, with the end of the 15th general election in Malaysia followed by the
rise of political stability, the overall Malaysian economy will start to expand steadily. So,
the investment activities in the real estate market are also seen to be strong in the future
too. Due to the likelihood that landlords will maintain their rental expectations, market
rents are most likely to remain unchanged. Nevertheless, the landlords of newer shopping
complexes and those with a lot of vacant space will still be at a higher risk because they
don't have as much room to reduce their rental prices as the operational and maintenance
costs increased and the Government Service Tax (GST) was implemented too.

According to the National Property Information Centre’s (NAPIC) Malaysian

Property Market Report 2022, the total existing retail space in Selangor is 3,801.52
square metres with an availability rate of 22.28%, which is 846.9 square metres in total.
There could be an increase in the vacancy rate, which would put rents and capital values
under constant pressure, but as we can see, not all shopping malls would experience a
decrease in rental this year.

To sum up, the availability of retail space in Selangor is still reasonable and
satisfactory for both tenants and landlords. Yet, the current real estate market shouldn't be
taken lightly as it's considered to be extremely unpredictable.

23
16.0 BASIS OF VALUATION
The purpose of valuation of the subject property is financing. As the definition of
market value is defined as the estimated amount for which an asset should exchange on
the date of valuation between willing buyer and willing seller in an arm's length
transaction after proper marketing wherein the parties had each acted knowledgeably
prudently and without compulsion. The definition of market value would be our guideline
in selecting comparable in sales evidence.

Therefore, in order to find out the actual market value for our subject property
from the comparable property, some of the adjustments had been made. There are no
allowances being made in the valuation in the event of disposal or deemed because the
property is considered to be free from charges, lien, and other encumbrances.

17.0 METHODS OF VALUATION

In this valuation,we have adopted the Investment Method as the main method and
Comparable Method as the cross-check method in the valuation of the subject property to
formulate our opinion of the current Market Value of the subject property. Relevant
adjustments in the Comparison Method are made for differences in location, tenure of the
land, title restrictions if any and other relevant characteristics to arrive at the market value

24
18.0 ADOPTION OF TWO METHODS

18.1 INVESTMENT METHOD

This method estimates the present worth of the rights to future benefits to be
derived from the ownership of a specific interest in a specific property under
given market conditions. It is also a method of estimating the Market Value
through the capitalization of net income that could be derived from the
property at the current rate of return of similar properties during its remaining
economic life.

Current Rate of return (i) is estimated by applying for formula:

��� ������
������� �����

The Gross Income for the property is generated through the tenancy or leasing
of the property. Outgoings are then deducted from the gross income to arrive at
the net income of the subject property. Outgoings taken into consideration are
taxes, repairs, maintenance fees, fire insurance fee and management fees.

Basically, there are two approaches of investment method:

1. Conventional/Traditional approach
a) Term & Reversion/Block technique
b) Hardcore/Layer/Marginal technique
2. Discounted Cash Flow (DCF) Technique

For the purpose of valuation in this report, the conventional approach term and
reversion technique is adopted.

25
18.2 COMPARISON METHOD
This approach was used as a cross-check method of valuation in valuing the
market value of subject property. In this approach the sales and listings of
comparable properties recorded in the area are compiled. From the compiled
data, adjustments are made between the subject property and those properties
regarded as comparable in order to arrive at a common denominator.

The adjustments made are in relation to location, physical features, tenure,

legal and legislative constraint, time element which is the transaction date and
other factors that may affect the value of the subject property.

Kindly refer to Appendix N and Appendix O for the valuation working for
both methods, Investment Method and Comparison Method.

26
19.0 SALES EVIDENCE OF COMPARABLE PROPERTIES
The site value is also estimated by comparison with sales of similar properties adapted to
similar uses and located in or near the particular market area.

From our researches, we found that comparable properties have been transacted as
follow:-

Factors Subject Property Comparable A Comparable B Comparable C

Property The Starling Mall 3 Damansara Citta Mall Jaya Shopping

Centre

Lot No. Lot 60445, Lot 45821 Lot 59212 Lot PT134
Seksyen 39

Date of - 26/11/2020 22/10/2019 29/11/2021

transaction

Address 6, Jalan SS 21/37, 3, Jalan SS 1, Jalan PJU Jalan 14/17,

Damansara 20/27, 1a/48, Ara Seksyen 14,
Utama, 47400 Damansara Damansara, 46100 Petaling
Petaling Jaya, Intan, 47400 47301 Petaling Jaya, Selangor
Selangor Petaling Jaya, Jaya, Selangor
Selangor

Types of Commercial Commercial Commercial Commercial

property

Tenure Freehold Freehold Leasehold for Leasehold for

99 years 99 years
(Unexpired (Unexpired
Term of 92 term of 45
years) years)

27
 No of storey 7 storeys 6 storeys 4 storeys 8 storeys

Net Lettable 38,819.17sq.m 42,918.41 sq.m 39,434.27 sq.m 25,203.57 sq.m

Area (sq.m)

Net Lettable 460,311.95 sq.ft 461,970.00 sq.ft 424,467.00 sq.ft 271,289.00 sq.ft
Area (sq.ft)

Transaction price - 540,000,000 245,000,000 260,000,00

(RM)

Price per square - 108.59 53.62 117.35

meter analysis
(RM)

Price per square - 1168.90 577.19 1263.16

feet analysis
(RM)

Source: Jabatan Penilaian dan Perkhidmatan Harta (JPPH)

28
20.0 OPINION OF VALUE

This valuation is intended for financing purposes. After taking into consideration of all
the relevant factors affecting value, we therefore evaluate the market value of the subject
property is as follow:

Market Value: RM705,000,000 (RINGGIT MALAYSIA: SEVEN HUNDRED AND

FIVE MILLION ONLY).

We hereby certify that we have neither present nor prospective interest on the property
appraised or on the value reported.

21.0 CERTIFICATION

The valuation of the above property has been carried out by Koid Wei Hong, Registered
Valuer (V8820).

For and behalf of,

KOID WEI HONG

Sr. Koid Wei Hong

Registered Valuer (V8820)
KAHVY Valuers Sdn. Bhd.

29
APPENDICES

30
APPENDIX A: DOCUMENT OF TITLE

Source: Pejabat Tanah dan Galian Selangor

DOCUMENT OF TITLE

31
 Source: Pejabat Tanah dan Galian Selangor

DOCUMENT OF TITLE

32
 Source: Pejabat Tanah dan Galian Selangor

DOCUMENT OF TITLE

33
 Source: Pejabat Tanah dan Galian Selangor

DOCUMENT OF TITLE

34
 Source: Pejabat Tanah dan Galian Selangor

DOCUMENT OF TITLE

35
APPENDIX B: TITLE SEARCH

Source: Pejabat Tanah dan Galian Selangor

TITLE SEARCH

36
 Source: Pejabat Tanah dan Galian Selangor

TITLE SEARCH

37
 Source: Pejabat Tanah dan Galian Selangor

TITLE SEARCH

38
APPENDIX C: LOCATION MAP OF SUBJECT PROPERTY

LOCATION MAP

39
APPENDIX D: LOCATION PLAN OF SUBJECT PROPERTY

LOCATION PLAN

40
APPENDIX E: NEIGHBOURHOOD PLAN OF SUBJECT PROPERTY

NEIGHBOURHOOD
PLAN

41
APPENDIX F: SITE PLAN OF SUBJECT PROPERTY

Source: Pejabat Tanah dan Galian Selangor

SITE PLAN

42
APPENDIX G: ZONING PLAN OF SUBJECT PROPERTY

Source: Sistem I-Plan - iplan.planmalaysia.gov.my

ZONING PLAN

43
APPENDIX H: FLOOR PLAN OF SUBJECT PROPERTY

FLOOR PLAN OF
LEVEL B1

44
FLOOR PLAN OF
LEVEL G

45
FLOOR PLAN OF
LEVEL 1

46
FLOOR PLAN OF
LEVEL 2

47
FLOOR PLAN OF
LEVEL 3

48
FLOOR PLAN OF
LEVEL 4

49
FLOOR PLAN OF
LEVEL 5

50
APPENDIX I: GENERAL VIEW OF SUBJECT PROPERTY

FRONT VIEW

51
SIDE VIEW (WEST)

52
SIDE VIEW (EAST)

53
APPENDIX J: INTERNAL VIEW OF SUBJECT PROPERTY

INTERNAL VIEW

54
INTERNAL VIEW

55
INTERNAL VIEW

56
APPENDIX K: PUBLIC UTILITIES AROUND THE SUBJECT PROPERTY

LRT KELANA JAYA

57
MRT TTDI

58
APPENDIX L: COMPARABLE PLAN

COMPARABLE PLAN

59
APPENDIX M: LIST OF TENANTS

Unit No. Tenants Net Lettable Area (square feet)

Basement

B-001 Jaya Grocer 21000.23

B-001A Boost Juice 493.16

B-001B ACE Hardware 10765.55

B-002 M-Trend 545.61

B-003 Cheong Loong Sea Products 515.75

B-004 BMS Organics 743.16

B-005 Guardian 751.22

B-006 Guardian 515.75

B-007 Shen Niu Beef Noodle House 530.11

B-008A Sala 530.11

B-008B Mahnaz Food 515.75

60
B-009 Caring Pharmacy 1254.52

B-010 Shihlin Taiwan Street Snacks 493.16

B-011 Tan Ngan Lo 493.16

B-012 Mala JJiang Mala TTang 500.75

B-013A Auntie Anne’s 456.23

B-013B Eat Cake Today 456.23

B-014 Eat Cake Today 493.16

B-015 Sopoong Korean Restaurant 525.86

B-016 Everest Ringgit Money Changer 320.55

B-017 TNS Skin Lab 319.65

B-018 PinChao Chengdu Hotpot 1355.61

B-019 PinChao Chengdu Hotpot 1931.48

B-020 Smart Uniform 320.55

B-021A Packaging Mart 320.55

B-021B Packaging Mart 320.55

61
B-022 Little Bubble Hut 320.55

B-023 Pet Lovers Centre 1864.73

K-B-001 MBG Fruit Shop 505.75

K-B-002 Ah Cheng Laksa 505.75

K-B-003 Stuff’D 505.75

K-B-004 Stop N Go 505.75

K-B-005 Gong Cha 505.75

K-B-006 I LOVE YOO! 505.75

K-B-007 LAC Malaysia 320.55

K-B-008 Miki Bakery 320.55

Ground Floor

G-001 POS Malaysia 1525.00

G-002 iTWorld 1672.00

G-003 Padini Concept Store 3750.00

G-004 Padini Concept Store 3750.00

62
G-005 Padini Concept Store 3750.00

G-006 Padini Concept Store 3750.00

G-007 Brands Outlet 2825.00

G-008 Brands Outlet 2825.00

G-009 Brands Outlet 2825.00

G-010 Brands Outlet 2825.00

G-011 Miniso 1954.00

G-012 Miniso 1954.00

G-013 Samsung Concept Store 1497.00

G-014 Dr. Hauschka 1013.00

G-015 Skechers 1216.00

G-016 PUMA 1216.00

G-017 La gourmet 1216.00

G-018 The Travel Store 1216.00

G-019 SASA 1748.00

63
G-020 SASA 1748.00

G-021 Prospec Studio 435.00

G-022 Baskin Robbins 879.00

G-023 Machines 1164.00

G-024 Machines 1083.00

G-025 Urban Label 995.00

G-026 Urban Label 913.00

G-027 AsterSpring 2287.00

G-028 Vacant 4176.00

G-029 Kitschen 4176.00

G-030 Scholl 536.00

G-031 Nando’s 4218.00

G-032 Kam Kee Cafe 1687.00

G-033 Truly Wine 2925.00

G-033A Truly Wine 545.00

64
G-034 Dim Dou Duck & Hou Yum Duck 3774.00

G-035 Seppia & Polpo 4753.00

G-036 Rakuzen & Shojikiya 3245.00

G-037 Rakuzen & Shojikiya 1850.00

G-038 The Museum 1779.00

G-039 Starbucks Coffee 1347.00

G-040 Pho Vietz 1752.00

G-041 The Barn 5079.00

G-042 PYT Jeweller 2330.00

First Floor

F-101 CMY Audio & Visual 3896.00

F-105 ETC 1198.00

F-106 Stepcare & Schein 1115.00

F-107 Young Curves 1115.00

65
F-108 Sorella & Pierre Cardin Concept Store 1115.00

F-109 Sorella & Pierre Cardin Concept Store 1115.00

F-110 Sorella & Pierre Cardin Concept Store 1115.00

F-111 Tanamera 1110.00

F-112 APT Hair Salon 1395.00

F-113 Paris Optical 586.00

F-114 Hair Fancier 1110.00

F-115 Hair Fancier 1110.00

F-116 Watsons 1115.00

F-117 Watsons 1115.00

F-118 Maxis 864.00

F-119 Digi 486.00

F-120 U Mobile 495.00

F-120A The Green Party 495.00

66
F-121 The Green Party 900.00

F-122 Celcom 900.00

F-123 Honor 900.00

F-123A Home’s Harmony 2230.00

F-124 ESH 5243.00

F-125 Daiso 5598.00

F-126 Dave’s Deli 1653.00

F-127 Sukishi 2285.00

F-128 Ramen Hitoyoshi 1045.00

F-129 PerySmith 495.00

F-130 Red Kettle 2090.00

F-131 Two Sons Bistro 2194.00

F-132 Sushi Zanmai 1920.00

F-133 Sushi Zanmai 1920.00

F-134 Kakatoo 1664.00

67
F-135 Hoops Station 1988.00

F-136 Original Classic 5845.00

F-137A NPM Malaysia 393.00

F-137B D’Natural Hair & Beauty 1830.00

K-F-101 Cojiitii 450.65

K-F-102 Famous Amos 450.65

K-F-103 llao llao 450.65

Second Floor

S-201A Chi-X Fitness 12431.54

S-201B Toy World 5984.37

S-202 Vacant 2515.39

S-203 Vacant 2515.39

S-204 Vacant 2515.39

S-205 Velvet-Threading & Waxing Specialist 493.50

68
S-206 Popular 2780.91

S-207 Popular 2780.91

S-208 Popular 2780.91

S-209 Rick Collection 739.62

S-210 Rick Collection 739.62

S-211 Celmonze The Signature 986.15

S-212 Hi-Bliss Hydrogen Therapy 986.15

S-213 WNail Inspired & Glory Nail 1279.23

S-214 Vacant 493.50

S-215 Toys Spot 493.50

S-216 Mi 493.50

S-217 GameOn 493.50

S-218 Hush Puppies Apparel 823.15

S-219 Fibre Star 823.15

S-220 CK Chiropractic 823.15

69
S-221 My Com 764.62

S-222 My Com 764.62

S-223 SSF 12784.33

S-224 Hooga 1639.34

S-225 Teo Chew Lor 1789.45

S-226 Vacant 1539.45

S-227 Vacant 1539.45

S-228 Mr. Tuk Tuk 1589.45

S-229 Mitsuyado Seimen 1345.45

S-230 Vacant 1589.45

S-231 Salad Atelier 689.15

S-232 Tang Room 1846.23

S-233 Tang Room 1846.23

S-234 Tang Room 1846.23

S-235 Tang Room 1846.23

70
S-236 Tang Room 1846.23

K-S-202 ZUS Coffee 450.65

K-S-203 Tealive 450.65

Third Floor

T-301 Empire Spa & Wellness 1360.00

T-302 Empire Spa & Wellness 1025.00

T-303 Vacant 1025.00

T-304 Vacant 1025.00

T-305 B&W Outdoor Cases 780.00

T-306 Litt Tak 700.00

T-307 Hippopo Baby Spa & Wellness 1440.00

T-308 Tiny Bench 1050.00

T-309 Verthys The Signature 950.00

T-310 Papeleria by VIVE 930.00

T-311 Kwotch’X 930.00

71
T-312 Parkhill Dental 930.00

T-313 Parkhill Dental 930.00

T-314 Beauty Extreme 930.00

T-315 Foodies’ Nest 2760.00

T-326 5T3M Academy 3300.00

T-327 5T3M Academy 2300.00

T-328 5T3M Academy 2000.00

T-329 5T3M Academy 3960.00

T-330 5T3M Academy 3570.00

T-331A BookXcess 6700.00

T-331B BookXcess 6700.00

Fourth Floor

4-401 Co-labs Coworking 22500.00

4-4-402 Co-labs Coworking 22500.00

4-403 Vacant 7200.00

72
4-404 MR. D.I.Y. 8325.00

Fifth Floor

RF-501 GSC 45000.00

RF-502 Dr. Chin and Pacific 2300.00

RF-503 Event Hall 1 7200.00

RF-504 Event Hall 2 8325.00

73
APPENDIX N: INVESTMENT METHOD

Explanatory Notes:

TERM

1. It is assumed that there is no relationship between the tenant and the landlord on the
tenancy agreement signed.

2. All the tenants had agreed on a three-year term on tenancy agreement.

3. The occupancy rate of the subject property during the term period is 94.32%. During
the term period, the vacant units do not generate any income.

4. The monthly rental per square foot under term period for each floor of The Starling
Mall is retrieved from the leasing management office of The Starling Mall. The
monthly rental rate are as follows:

Floor No. Monthly rental per square foot (RM per sqft)

Basement 10.00-13.00

Ground Floor 11.00-14.00

1st Floor 9.00-12.00

2nd Floor 10.50-11.50

3rd Floor 7.50-8.50

4th Floor 8.00

5th Floor 7.50

74
 The net monthly rental/income for ATM and Car Park as of the tenancy agreement
are as follows:

Particular Net monthly rental

ATM RM1200.00 per unit

Carpark RM500,000.00

5. The current outgoings under term period obtained according to the tenancy agreement
and annual financial report of The Starling Mall in 2022 that were obtained is
RM1.70. The components of outgoings of the subject property are as follows:

Particular Amount per Average Amount Amount per square foot

Annum (RM) per Month (RM) (RM per sqft per month)

Quit Rent 165,712.30 13,809.30 0.03

Assessment Rate 1,104,748.68 92,062.39 0.20

Management and 2,319,972 193,331.02 0.42

Maintenance Fees

Fire Insurance 5,799,931 483,327.55 1.05

Total 9,390,368.98 782,530.26 1.70

SAYS 1.70

75
6. The term yield, i=6%, was adopted for the term period. This yield is adopted after
taking into consideration the securities of income during the term period.

7. The subject property was subjected into a tenure of term in perpetuity. Thus, the
Year's Purchase Single Rate is adopted in the calculation. The formula used for the
Years Purchase Single Rate is:

�−1
Years Purchase Single Rate = �(�)

Where,

� = (1 + �)�

i = Interest Rate

n = Number of Years

8. The balance term is calculated from the date of valuation which is on 12th of
November 2022 towards the end of the tenancy term.

9. The capital value in term is calculated by multiplying the net annual income with the
Years Purchase Single Rate.

76
REVERSION

1. The occupancy rate of the subject property is assumed at 100% in the reversion
period.

2. The monthly rental per square foot on the reversion period for each floor of The
Starling Mall is retrieved from the market analysis of surrounding comparable
commercial properties around the subject property. The monthly rental rates are as
follows:

Floor No. Monthly rental per square foot (RM per sqft)

Basement 1 13.50

Ground Floor 14.50

1st Floor 12.50

2nd Floor 12.00

3rd Floor 9.00

4th Floor 8.50

5th Floor 8.00

The net monthly rental/income for ATM and Car Park as of the reversion period are
as follows:

Particular Net monthly rental

ATM RM1,300.00 per unit

Carpark RM540,000.00

77
3. The outgoing under reversion period is retrieved from analysis on surrounding
commercial property, RM1.90 per sqft.

Particular Amount per Average Amount Amount per square foot

Annum (RM) per Month (RM) (RM per sqft per month)

Quit Rent 165,712.30 13,809.30 0.03

Assessment Rate 1,104,748.68 92,062.39 0.20

Management and 2,596,159.40 216,346.62 0.47

Maintenance Fees

Fire Insurance 6,628,492.08 552,374.34 1.20

Total 10,495,112.46 874,592.65 1.90

SAYS 1.90

4. Void rates must be taken into consideration when obtaining the net annual income of
the subject property. This is because there may be chances that the retail space
becomes void when the tenancy agreement with the previous tenant had ended or
during renovation period. The market analysis has recorded a 15% void rate of
surrounding property. However, the void rate is adjusted to 10% after taking into
consideration the occupancy rate performance of subject property. Therefore, the void
rate taken for the subject property under reversion period is 10% from the net annual
rental.

78
5. The yield for reversion period, i=7% was derived through market analysis and
information from National Property Information (NAPIC). Market analysis is done by
analysing the current yield of comparable commercial property located around the
subject property.

6. For the reversion period, the formula that were adopted are Years Purchase in
Perpetuity and Present Value for the Deferred Period:

1
����� ����ℎ��� �� ���������� =
�
1
������� ����� ��� ��������� ������ =
�
where

� = (1 + �)�

i = Interest Rate

n = Number of Years Deferred

7. The capital value of the subject property for reversion period is calculated by
multiplying net annual income with Years Purchase in Perpetuity and Present Value
for Deferment Period.

79
AUTOMATED TELLER MACHINE (ATM)

1. Automated Teller Machine (ATM) is rented at the rate of RM1,200.00 per unit. There
are 2 ATMs available in subject property which is Public Bank and CIMB bank
located at the Basement 1.

2. The market rent of Automated Teller Machine (ATM), RM1,200.00 per unit is
adopted through the market analysis of surrounding commercial properties.

3. The yield under term period for ATM is adopted at 6% for the rent receivable to
obtain the capital value of term because it reflects a more secure occupancy during
the leasing term.

4. The reversion yield of 7% is applied for ATM as it is considered as a part of the

building of subject property.

CARPARK

1. Carpark in the subject property is managed by the owner of The Starling Mall.

2. Operation days for the car park are 365 days.

3. The income of the car park is calculated based on the average parking rate per bay
which is at RM10 per day. The monthly income obtained will also take into
consideration the parking rate charged on visitors and staff into subject property.

4. Annual outgoings for car parks are allowed at 15% which includes the particulars of
quit rent, assessment rate, maintenance and management fees, and fire assurance.

5. The yield of 7% is applied for car park as it is considered as a part of the building of
subject property.

80
VALUATION WORKING ON INVESTMENT METHOD

The investment calculation is attached as per the excel file along with this report.

Therefore, from the investment method,

TOTAL MARKET VALUE

= Total Value for Tenants + Value for ATM Spaces + Value of Car Park

= RM620,345,000.00 + RM447,000.00 + RM83,488,275.00

= RM704,280,275.00

SAY RM705,000,000.00

81
 APPENDIX O: COMPARISON METHOD

Property Subject Comparable 1 Comparable 2 Comparable 3

Details Property

Property The Starling 3 Damansara Citta Mall Jaya Shopping

Mall Centre

Lot No Lot 60445, Lot 45821 Lot 59212 Lot PT134

Seksyen 39

Address 6, Jalan SS 3, Jalan SS 20/27, 1, Jalan PJU Jalan 14/17,

21/37, Damansara Intan, 1a/48, Ara Seksyen 14,
Damansara 47400 Petaling Damansara, 46100, Petaling
Utama, 47400 Jaya, Selangor 47301 Petaling Jaya, Selangor
Petaling Jaya Jaya, Selangor

Mukim Bandar Petaling Bandar Petaling Bandar Petaling Bandar Petaling

Jaya Jaya Jaya Jaya

District Petaling Petaling Petaling Petaling

State Selangor Selangor Selangor Selangor

Date of - 26/11/2020 22/10/2019 29/11/2021

Transaction

Types of Commercial Commercial Commercial Commercial

property

Category of Building Building Building Building

Land Use

Net Lettable 42,764.38 42,918.41 39,434.27 25,203.57

Area (sq m)

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Net Lettable 460,311.95 461,970.00 424,467.00 271,289.00
Area (sq ft)

Tenure Term in Term in Leasehold for 99 Leasehold for 99

perpetuity perpetuity years (Unexpired years (Unexpired
term of 92 years) term of 45 years)

Consideration - 540,000,000 245,000,000 260,000,000

(RM)

Analysis of - 1168.90 577.19 1263.16

Property
(RM/sq.ft.)

83
 ADJUSTMENT FACTORS

Factor Subject Comparable 1 Comparable 2 Comparable 3

Property

Time - 26/11/2020 12% 22/10/2019 18% 29/11/2021 6%

Net Lettable 460,311.95 461,970.00 0% 424,467.00 5% 271,289.00 20%

Area (sq ft)

Location No 6, Jalan SS No 3, Jalan SS 5% 1, Jalan PJU 5% Jalan 14/17, 10%

21/37 20/27 1a/48, Ara Seksyen 14,
Damansara

Tenure Term in Term in 0% Leasehold for 10% Leasehold for 15%

perpetuity perpetuity 99 years 99 years
(Unexpired (Unexpired
term of 92 term of 45
years) years)

Category of Building Building 0% Building 0% Building 0%

Land Use

Accessibility Public Public 5% Public 5% Public 5%

Transport Transport Transport Transport
Available, Free Available, Available, Available,
Shuttle Bus, Taxi, E-hailing Taxi, E-hailing Taxi, E-
Taxi, E-hailing hailing

Building Good Good 0% Good 0% Good 0%

Condition

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 Building Centralised air- Centralised air- 0% Centralised air- 0% Centralised 0%
Facilities condition condition condition air-condition
system, Lift, system, Lift, system, Lift, system, Lift,
Escalator, Car Escalator, Car Escalator, Car Escalator, Car
Park, Fire Park, Fire Park, Fire Park, Fire
Fighting Fighting Fighting Fighting
System, 24 System, 24 System, 24 System, 24
hours security hours security hours security hours security

Total - +22% +43% +56%

Adjustment
(%)

Adjusted 1,367.61 825.38 1,970.53

Value
(RM/sq.ft.)

Based on the comparison table made above, Comparable 1 is the best comparable due to
the least factor of adjustment made and least total percentage of adjustment it had
(+22%). Therefore, the estimated market value is RM1,426.06 per sq.ft.

Market Value of Subject Property = 460,311.95 sq.ft. @ RM1,426.06 per sq.ft.

= RM656,432,459

Say Market Value RM660,000,000

85
Explanatory Notes:

1. Time Factor
A positive adjustment of 6% is made for every year due to the increasing commercial
property price index. Based on the market analysis, the average commercial shopping
complex price index is 6% year on year basis. Therefore, a positive 12% is being
adjusted for comparable 1 due to 2 years has passed from the date of valuation of
subject property, a positive 18% for comparable 2 due to 3 years has passed from the
date of valuation of subject property while for comparable 3 has passed 1 year from
the date of valuation of subject property hence a positive 6% is being adjusted.

2. Net Lettable Area

The net lettable area of subject property is different from the three comparables.
Based on market analysis of comparable property transactions, a justification for an
adjustment of 5% is made for every increment of 50,000 sq ft and vice versa. For
Comparable 1, the net lettable area is 461,970 sq ft and it is almost the same as the net
lettable area of our subject property. Thus, no adjustment has been made on
Comparable 1. However, the net lettable area of Comparable 2 is 424,467 sq ft which
is around 35,000 sq ft smaller and Comparable 3 is 271,289 sq ft which is around
190,000 sq ft smaller than the net lettable area of our subject property. Therefore,
adjustment of 5% and 20% is made for Comparable 2 and Comparable 3 respectively.

0 - 50,000 sq ft 5%

50,001 - 100,000 sq ft 10%

100,001 - 150,000 sq ft 15%

150,001 - 200,000 sq ft 20%

86
3. Location
The location of the subject property at No 6, Jalan SS 21/37 and is surrounded by
many shopping malls, restaurants, residential and office buildings. It is also located in
a relatively high populated area and mixed development area. It has very high
visibility and exposure to the people. Therefore , the comparable property that is
located at No 3, Jalan SS 20/27 and 1, Jalan PJU 1a/48, Ara Damansara are adjusted
to 5% as the surroundings of both comparable are similar which mostly consists of
residential buildings only whereby it is less exposed to the people compare to the
subject property.On the other hand, comparable C which is located at Jalan 14/17,
Seksyen 14 is adjusted up to 10% as the surroundings are mostly old commercial
building which will have the least exposure to people compare to other comparables
and subject property.

4. Tenure
The tenure of the subject property is term in perpetuity and same with comparable 1.
Therefore, no adjustment made on comparable 1. and comparable 2. While, the tenure
of comparable 2 and comparable 3 is Leasehold for 99 years (Unexpired Term: 92
years left) and Leasehold for 99 years (Unexpired Term: 45 years left). Hence, an
adjustment of 10% and 15% were made on both comparables respectively.

5. Category of Land Use

According to the document of title obtained from the Pejabat Tanah dan Galian
Selangor, the subject property and all comparable properties are zoned for
commercial use. Therefore, no adjustments are made.

6. Accessibility
The accessibility for the subject property is better as they offer free shuttle buses for
the visitors and customers to transport them from the Starling Mall to MRT TTDI or
LRT Kelana Jaya and vice versa. This service is not offered from other comparable
properties. Hence, an adjustment of 5% is made on all 3 comparables.

87
7. Building Condition
Building condition of subject property and all comparable properties are the same. All
the buildings are maintained and currently are in good condition. There is no recent
refurbishment work that has been done on all the comparable. Thus no adjustment is
made.

8. Building Facilities

Since the subject property and all comparable properties have the same building
facilities including centralised air-condition system, lifts, car parks, fire fighting
system and 24-hour security, therefore no adjustments are made.

88
APPENDIX P: PERCENTAGE OF DIFFERENCE
Based on our calculation for investment method, the estimated market value for our
subject property was found to be RM 705,000,000.00 whereas the estimated market value
of the subject property deduced through the comparison method was found to be RM
660,000,000.00.
The percentage difference between estimated Market Value obtained through investment
method and comparison method are as follows:

������ ����� �� ���������� ���ℎ�� − ������ ����� �� ���������� ���ℎ��

± × 100%
������ ����� �� ���������� ���ℎ��

��705,000,000.00 − ��660,000,000.00
= ± × 100%
��705,000,000.00

= 6.38%

Thus, the difference in value by using these two methods is RM 45,000,000 which is
approximately 6.38%. Having considered the prevailing market conditions and other
relevant factors, our opinion of the current open market value of the subject property is
RM 705,000,000 (by using Investment Method) and RM660,000,000 (by using
Comparison Method).

We have determined that the value derived via Investment method reflects the current
market value more accurately since the different shopping malls have different
occupancy rate and marketing strategy which will significantly affect the value of
transaction.

In conclusion, we are of opinion the estimated market value for the subject property is
assessed at RM 705,000,000 (Ringgit Malaysia: Seven Hundred and Five Million
Only)

89
APPENDIX Q: DECLARATION BY VALUER

DECLARATION BY VALUER

I, Sr Koid Wei Hong from KAHVY Valuers instructed by See Hoy Chan Sdn. Bhd. to
carry out a valuation on a 7 STOREY SHOPPING COMPLEX, HELD UNDER TITLE
NO GRN 313147, LOT 60445 SEKSYEN 39, BANDAR PETALING JAYA, STATE
OF SELANGOR (BEARING POSTAL ADDRESS: 6, JALAN SS 21/37,
DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA) do
hereby declare that:

i. I am neither a director nor employee of that Company and do not have a significant
financial interest, direct or indirect, therein;

ii. The Firm’s partners or director are neither the directors nor employees of the
Company and they do not have significant financial interest, direct or indirect,
therein;

iii. The Company does not have a significant financial interest in the Firm; and

iv. I have complied with the requirement of the Guideline with respect to qualification
of valuer.

KOID WEI HONG

Sr. KOID WEI HONG

Registered Valuer (V8820)
KAHVY Valuers Sdn. Bhd.

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APPENDIX R: LIMITING CONDITIONS

LIMITING CONDITIONS

1. INTRODUCTION

1.1. A Valuer may accept instructions to value subject to certain limiting conditions
and exclusions as agreed with the client.

2. STATEMENTS OF STANDARD

2.1. Limiting conditions that directly affect the valuation must be explained clearly
where appropriate.

2.2. The following limiting conditions may appear on the Valuation Reports without
any further explanation: -

2.2.1. MALAYSIAN VALUATION STANDARDS

This Valuation Report is carried out in accordance with the Manual of Valuation
Standards published by the Board of Valuers, Appraisers and Estate Agents.

2.2.2. MEASUREMENTS

All measurements are carried out in accordance with the Uniform Method of
Measurement of Buildings issued by The Royal Institution of Surveyors, Malaysia.

2.2.3. CONFIDENTIALITY

This Report is confidential to the Client or to whom it is addressed and for the
specific purpose to which it refers. It may only be disclosed to other professional
advisors assisting the Client in respect of that purpose, but the Client shall not

91
disclose the report to any other person. Neither the whole, nor any part of the
Valuation Report or Certificate or any reference thereto may be included in any
published document, circular or statement nor published in any way without our
prior written approval of the form and context in which it may appear.

We shall bear no responsibility nor be held liable to any party in any manner
whatsoever in the event of any unauthorised publication of the Valuation Report,
whether in part or in whole.

2.2.4. USE OF REPORT

The opinion of value expressed in the Report shall only be used by the addressee
for the purpose stated or intended in this Report. We are not responsible for any
consequences arising from the Valuation Report being relied upon by any other
party whatsoever or for any information therein being quoted out of context.

2.2.5. LEGAL TITLE

Whenever possible, a private title search is conducted at the relevant Land

Registry/Office but this is done to establish title particulars relevant to valuation
only. Whilst we may have inspected the title of the property as recorded in the
Register Document of Title, we cannot accept any responsibility for its legal
validity or as to the accuracy and timelines of the information extracted or
obtained from the relevant Land Registry/Office.

2.2.6. SITE SURVEYS

We have not conducted any land survey to ascertain the actual site boundaries. For
the purpose of this valuation, we have assumed that the dimensions correspond
with those shown in the title document, certified plan or any relevant agreement.

92
2.2.7. STRUCTURAL SURVEYS

While due care has been taken to note building defects in the course of inspection,
no structural surveys were made nor any inspection of woodwork or other parts of
the structure which were covered or inaccessible were made. We are therefore
unable to express an opinion or advice on the condition of uninspected parts and
this Report should not be taken as making any implied representation or statement
on such parts. Whilst any defects or items of disrepair may be noted during the
course of inspection, we are not able to give any assurance in respect of any rot,
termite or pest infestation or other hidden defects.

2.2.8. DELETERIOUS OR HAZARDOUS MATERIALS

No investigations have been carried out to determine whether or not any

deleterious or hazardous materials had been used in the construction of the
property (building) or had since been incorporated and we are, therefore, unable to
account or report on any such material in our report.

2.2.9. CONTAMINATION

We have not carried out investigations into the past and present use of either the
property or of any neighbouring land to establish whether there has been any
contamination or if there is any potential for contamination to the property and are
therefore unable to account and report for such contamination in our report.

2.2.10. DISEASE OR INFESTATION

Whilst due care is taken to note the presence of any disease or infestation, we have
not carried out any tests to ascertain possible latent infestations or disease
affecting crops or stock. We are therefore unable to account for such in our report.

93
2.2.11. LEASES AND TENANCIES

Enquiries as to the financial standing of actual or prospective lessees or tenants are

not normally made unless specifically requested. Where properties are valued with
the benefit of lettings, it is therefore assumed that the lessees or tenants are capable
of meeting their obligations under the lease of tenancy and that there are no arrears
of rent or undisclosed breaches of covenants and/or warranties.

2.2.12. DEVELOPMENT AGREEMENTS

Unless otherwise stated, no considerations are made in our valuation for any joint
venture agreement, development right agreement or other similar contracts.

2.2.13. OUTSTANDING DEBTS

In the case of buildings where works are in hand or have recently been completed,
no allowances were made for any liability already incurred, but not yet discharged,
in respect of completed works, or obligations in favour of contractors,
subcontractors or any members of the professional or design team.

2.2.14. TAXATION, ENCUMBRANCES, STATUTORY NOTICES AND

OUTGOINGS

Unless otherwise stated, no allowances are made in our valuation for any expense
of realisation or for taxation which might arise in the event of a disposal, deemed
or otherwise. We have considered the property as if free and clear of all charges,
lien and all other encumbrances which may be secured thereon. We also assumed
the property is free of statutory notices and outgoings.

94
 2.2.15. VALIDITY PERIOD OF VALUATION REPORT

This valuation is current as at the date of valuation only. The value assessed herein
may change significantly and unexpectedly over a relatively short period
(including as a result of general market movements or factors specific to the
particular property). We do not accept liability for losses arising from such
subsequent changes in value.

3. EXPLANATIONS

3.1. Whilst it is desirable that all the limiting conditions and exclusions which appear
in Valuation Reports be properly and fully explained, it may not be practical to do so.
Neither is it possible to have a comprehensive list to cover all other circumstances.
Suffice it is to say that the above may appear in Valuation Reports without any further
explanation and shall form part of the conditions of engagement between the Client and
the Valuer, unless expressly excluded.

95
APPENDIX S: MEETING MINUTES
Our group has conducted several meetings and discussions to ensure that the assignment
can be completed within the time. All the members have attended each meeting. Our
group members are:

1. U2104599 Koid Wei Hong

2. U2104489 Amirul Aiman Bin Amirul Iskandar
3. U2104547 Hani Hazirah Binti Mohd Hasbullah
4. U2104549 Aw Yi Hui
5. U2104617 Venice Chen Xin Ee

The schedule meeting are as follows:

Date Venue Issue Discussed

25 October 2022 ● BK6, Faculty of Built ● Discussion with members
Environment about the topics given.
26 October 2022 ● Online Google Meet ● Search for the property to be
valued.
30 October 2022 ● Online Google Meet ● Decide on the subject
property to be valued.
● Find the location of subject
property to be valued for the
report.
3 November 2022 ● Level 8, Faculty of ● Apply the letter of
Built Environment permission from the office
of Faculty of Built
Environment.

96
8 November 2022 ● Pejabat Tanah Dan ● Went to PTG Selangor to
Galian Negeri perform a title search.
Selangor, Tingkat
LG, G, 1, 3, 4,
Bangunan Sultan
Salahuddin Abdul
Aziz Shah, 40576
Shah Alam, Selangor
Darul Ehsan.
12 November 2022 ● 6, Jalan SS 21/37, ● Site inspection of the
Damansara Utama, property.
47400 Petaling Jaya,
Selangor.
13 November 2022 ● Online Google Meet ● Discussion with all the
members to distribute the
works for interim
presentation and the task of
valuation report writing.
27 November 2022 ● Online Google Meet ● Discussion on the progress
and problems occur.
● Prepare for an interim
presentation.
30 November 2022 ● BK6, Faculty of Built ● Interim presentation.
Environment
8 December 2022 ● Online Google Meet ● Discussion on the progress
and problems occur.

97
30 December 2022 ● Online Google Meet ● Compile all the work done
by each group member.
● Final confirmation on the
report.

With the commitment given by every group member, we have successfully completed
our assignment within the given dateline.

Thank you.

Reported by,

KOID WEI HONG

Sr. KOID WEI HONG

Registered Valuer (V8820)
KAHVY Valuers Sdn. Bhd.

98