FONTERRA in - Axis Reit

ISSUE AXIS LINK ISSUE 02/201202/2012NEWSLETTERJULY 2012LINKFOR INTERNAL CIRCULATIONHIGHLIGHTS• ENHANCEMENT PROJECTSUPDATE ~ Fonterra SubangHi-Tech, Strateq, FCI• OUR LATEST ACQUISITIONS~ Emerson Industrial Facility, Nilai~ Wisma Academy & the Annex, PJ• EVENTS & HAPPENINGS~ Press & Analysts’ Briefing~ Breakfast Meeting by MRMA &APREA• AXIS OFFICE NEWS~ Stewart’s Birthday Celebration~ Training – Achieving ServiceExcellence• OCCUPANCY SAFETY AND HEALTH~ Workplace Security TipsFONTERRA inSUBANG HI-TECH– EnhancementCompleted!Axis-REIT has successfully added yet another majorenhancement initiative to their portfolio - with thecompletion of the “Built-to-Suit” headquarters forFonterra Brands (Malaysia) Sdn Bhd at Subang Hi-Tech Industrial Park.The building underwent a major makeover to suitFonterra’s needs and is now fully occupied. The“new” building outlook displays a youthful andvibrant concept together with its funky, colourfulinterior design.Axis REIT Managers Berhad (649450-W)Suite 6.04 Penthouse, Wisma Academy, 4A Jalan 19/1,46300 Petaling Jaya, Selangor Darul Ehsan.Tel 603 7958 4882/1/6 Fax 603-7957 6881 www.axis-reit.com.my Malaysia’s 1 st Islamic Office/Industrial REIT1

Message from David Aboud-Head of Real Estate &DevelopmentWelcome to Axis Link for the First Half of 2012.Firstly you will note that Mr. Sinnasamy Raman “Sam” is nolonger here. Sam has moved on to other opportunities and wethank him for his contribution to Axis REIT and wish him all thebest in the future.I have assumed Sam’s role as well as heading up developmentso I will look forward to catching up with you, our tenants andother business partners.As always Axis REIT is busy. We have committed to three furtheracquisitions during the 2Q12 quarter. The first is a well locatedmodern industrial facility in Nilai, the Emerson IndustrialFacility, and we will also be acquiring Wisma Academy and anadjacent site in Petaling Jaya. Both of these sites are multitenantedcommercial / warehouse facilities and we are pleasedto acquire such site in a prime Petaling Jaya location. Over thenext quarter, the Real Estate Team will be busy embeddingthese assets into the fund and getting to understand our newtenants’ needs.In addition during the first half of the year, we completedrefurbishments and upgrades on three further sites, Fonterra,Strateq and FCI – the details are on the following page. AxisREIT is committed to a policy of strategically upgrading andimproving our assets to ensure they continue to provide goodquality workspace for our tenants, and to deliver value to thefund’s investors. And there is more planned.In the next quarter we will commence a major upgrade of theInfinite Centre which is a 146,000 sq.ft. commercial / industrialbuilding in Petaling Jaya. The tender has been awarded andwork will start soon.In addition please let me welcome our new tenants, with sevennew tenants (details on this page) joining the Axis ‘family’ inthis first half of the year just gone.And whilst we are talking about new additions, let’s notforget our valuable team members. We welcomed Khoo ZheLun into the leasing team and Siva Kumar into the facilitiesmanagement team. Ms. Loh was also relocated to the HQ tosupport the project team where we can use her QS skills tobetter advantage.The remainder of the year will see some other keydevelopments, notably the implementation of a world classasset management system which will improve our processesand efficiency. In addition there have been improvements inour IT / communication systems.As always we welcome feedback and please feel free tocontact us at any time.Sincerely,David AboudHead of Real Estate & DevelopmentDHL Properties@ Bayan Lepas DistributionCentre, PenangSchenker Logistics@ Bukit Tengah IndustrialPark, Prai, PenangAdvisorsEditor-in-chiefMain ContributorsPhotographerRoca Malaysia@ Quattro West (West Wing), PJQuantum Medical Solutions@ Level 3A, Wisma Kemajuan, PJCelebratingAnniversaryThe Editorial TeamFeedback / ContributionsAXIS LINK ISSUE 02/2012Quantum Diagnostic@ 3rd Floor, Wisma Kemajuan,PJStewart LaBrooy & David AboudJoey LimJames Gorgey, Siva Shankar,Jackie Law, Zulkifli Aziz, Khoo Zhe LunSelina KhorJoey Limjoey.lim@axis-reit.com.mySandvik Malaysia@ Axis Business Park, PJFonterra Brands@ Subang Hi-TechOur tenant, Konica Minolta in InfiniteCentre celebrated their 30 years anniversary ofImaging Essentials in Malaysia on 15 February2012, simultaneously launching their DigitalImaging Centre in Infinite Centre.Congratulations!Axis REIT Welcomes New Tenants to Our PortfolioAxis Link is an internal publication published by Axis REIT Managers Berhad and is solely for internalcirculation. Contents and views expressed in this newsletter are for general information purposes onlyand do not necessarily represent or reflect those of the publisher. Whilst every effort has been madeto ensure the information contained herein is correct and up-to-date, the publisher cannot be heldresponsible for any errors or omission. Any feedback or contributions are most welcome.AXIS LINK ISSUE 02/2012Fonterra Subang Hi Tech(formerly Nestle Office& Warehouse)The Fonterra Headquarters (HQ) in Subang Hi-Tech Industrial Park is another “Built-tosuit”project initiative by Axis-REIT. The project commenced works on November 11th,2011 and was completed on March 6th, 2012, which is a turnaround time of less than5 months – pretty amazing!BEFORE: Nestle’s Office & WarehouseStrateq Power UpgradeIn January 2012, Axis-REIT carried out the upgrading of the electrical power supplyin the Strateq HQ building, from Low Voltage (LV) to High Tension (HT), to meet ourtenant, Strateq’s requirement to convert the premises into a dedicated Data Centre.The project was successfully completed on April 1st, 2012. Upon completion of thepower upgrading works, Strateq plans to apply MSC status for the building.FCI’s Fresh New Outlook!ENHANCEMENT PROJECTS UPDATEComplete Makeover to FonterraThe existing Nestle office cum warehouse was under utilised and the opportunityfor enhancement surfaced when Fonterra expressed interest in creating a newHQ at the site, catering for their expansion plans. The building was upgradedto a modern corporate HQ for Fonterra, with features to meet their corporateimage & a space requirement of approximately 30,000 sq.ft. We have alsoconverted additional land inside the building boundary into car parks to provideample car parking facilities.Fonterra undertook interior design which displayed a youthful and vibrantconcept with rooms having a mixture of colours that represent certainfunctions/agenda. The final product is shown in the photos above – a “new”HQ makeover for Fonterra!Strateq HQ in Section 13,Petaling JayaFCI External Façade RepaintingAxis-REIT recently completed the repainting of external façade for FCI inSenai, Johor. The project was completed on May 29th, 2012 (within aduration of one month).2 3

OUR LATEST ACQUISITIONSAXIS LINK ISSUE 02/2012AXIS LINK ISSUE 02/2012EVENTS & HAPPENINGSAxis-REIT will be adding 3 exciting new assets to its portfolio with its proposed acquisitions….ProposedThe 30thacquisition ofthe Trust…Emerson IndustrialFacility, NilaiThe property is strategically located within KawasanPerindustrian Nilai 1 in Negeri Sembilan and is sitedapproximately 18.7 km due north-west of Seremban.Currently, it is 100% occupied, mainly leased to EmersonProcess Management Manufacturing (M) Sdn Bhd as themajor tenant, on a 3-year lease with an option to renew for3 years. The remaining space is rented to K-Plastics IndustriesSdn Bhd for 2+1 years term. The property features twobuildings with a total gross built up of 192,677 sq. ft. andsits on two parcels of contiguous industrial land totalling7.27 acres. This is the REIT’s 30th acquisition, purchased forRM26.5 million.Press and Analysts/Fund Managers’Briefing at Hilton KLAxis-REIT held its quarterly briefing and presentation of the4Q2011 results to the press and analysts/fund managersat Hilton Kuala Lumpur Hotel on January 17th, 2012.Approximately 10 press members and 46 analysts /fundmanagers attended the two separate briefings, held forpress and analysts/fund managers, which were followedby Q&A sessions.Left:Our CEO, Mr.Stewart LaBrooypresenting the4Q2011 results tothe analysts atthe briefing.Wisma Academy and the Annex, PJWisma Academy is located strategically in the Section 19 industrial area of Petaling Jaya (PJ), sited approximately 12 km tothe south-west of the Kuala Lumpur city centre and about 4 km to the north-west of PJ new town centre. Sections 19, 13, 14 and17 of PJ are currently undergoing a transformation into a vibrant commercial district. The trust bought the strata parcels whichamount to 374,056 sq. ft. (or 91.02% of the share unit) in Wisma Academy, a stratified 6-storey office/warehouse building and a2-storey basement car park. It maintains a diversified mix of well established tenants. The fully tenanted Annex comprises a doublestorey showroom and a single storey warehouse with a gross built up of 37,200 sq. ft. These two 99-year leasehold multi-tenantedproperties are the REIT’s 31st and 32nd acquisitions, purchased for a total of RM85.0 million.ProposedProposedBreakfast Meeting byMRMA & APREA atHilton KLAnnouncementWith effect from 1st August 2012, the name of one of the properties in our portfolio, Plaza FSBMin Cyberjaya, will be changed to Axis Eureka. The one month notice is to allow our tenantsto do the necessary changes in their correspondence documents and to notify their businesspartners. Meanwhile, the building signage installation is in progress as scheduled.The 31st & 32nd acquisitions of the Trust…From left to right: Wisma Academy (left) & the Annex (right)The Malaysia REIT ManagersAssociation (MRMA) and AsiaPacific Real Estate Association(APREA) jointly organised aBreakfast Meeting on April 10th,2012 at Hilton Kuala LumpurHotel. Our CEO, who is alsothe chairman of MRMA, gavehis opening speech, followedby an address by APREAMalaysian Chapter, Mr. KumarTharmalingam, introduction toAPREA by APREA’s CEO, PeterMitchell, presentation on thenew MRMA website by TH Hongof 8iris and lastly, presentation byChris Gawan Taylor of Yardi.4 5

AXIS OFFICE NEWSStewart’sBirthdayCelebrationAXIS PERSONALITYMs. LohProject ManagerMs. Loh has recently been seconded to the HQ andjoined the Real Estate team as a Project Manager.Being a local, born and raised in Kuala Lumpur,she is married to a loving husband. She values andenjoys spending time with family even though beinga mother of 3 boys is very tiring. During her freetime, she likes to read, and her hobbies includeswimming, bowling and travelling.She graduated from RMIT Melbourne with theBachelor of Construction Economics/Applied Science.Upon graduation, she joined a main contractorcompany, Syarikat Pembinaan Woh Heng Sdn Bhdwhich associates with Putrajaya Holdings Bhd as aquantity surveyor for 5 years, before moving on toFujitsu System Business Malaysia Bhd as BusinessAnalyst for a year. She was then assisting inoverseeing the planning and construction of FSBMPlaza in Cyberjaya representing the owner, andsubsequently transferred to Building Managementafter the building was completed in 2002, beforejoining Axis REIT Managers Bhd in 2011 as FacilityManager when Axis REIT bought over the building(now renamed Axis Eureka).She has been working in the environment ofcomplaints everyday for the past 10 years andreceived complaints from tenants on and off, butnevertheless takes every single complaint andbreakdown seriously and treats them as a challenge,if not achievement once accomplished. She livesby her own philosophy - “Life is always filled withchallenges, so it is either we solve it or wait forsomething worse to happen”.AXIS LINK ISSUE 02/2012The management and staff celebrated CEO, Mr.Stewart LaBrooy’s 61st birthday in the officeon April 2nd, 2012 with potluck lunch gathering– wide spread of food of different cuisines,prepared by the staff! Axis has good potentialchefs!Axis Training -Achieving Service ExcellenceThe Facility Management staff attended a 2-day training program on“Achieving Service Excellence” conducted by ITD World on 21 & 22April 2012 at Shah Village. The objective of the program is to equipthe participants with the mind-set, heart-set and skill-set to fulfill therequirements for productive customer partnership.The training was concluded successfullywith 20 participants.Left: Staffs enjoying their meals duringa short break……..HELLO to:Khoo Zhe Lun –Joined Axis Real Estate Team in the HQas Portfolio Executive.AXIS LINK ISSUE 02/2012Ensuring the security and safety of workers, data, equipmentand facilities is a top priority for business owners and managers.Not only must a company have workplace security proceduresin place to deal with extreme scenarios such as terrorist attacksand acts of nature but it must also safeguard against itsconfidentiality being compromised by unauthorized access toits offices, files and databases.Workplace Security Tips21AccessOne of the easiest things a company can do inmanaging its security issues is to require thatindividuals have a legitimate reason for beingon the premises. This typically includes companyemployees, customers and clients, vendors andservice personnel such as plumbers, electricians andjanitorial workers. Issue building keys, pass codesand ID badges to regular staff. Require everyone elseto sign in with the receptionist and, if applicable,pass through a security checkpoint. For businessessuch as shops, the administrative offices, storagerooms and utility closets should be locked and offlimitsto visitors.Alarm and SurveillanceSystemsInvest in a good security system that will alertauthorities in the event of a break-in. Provide thepassword only to those with a legitimate reasonfor having it. Change the password frequently andwhenever one of the holders leaves the company’semployment. Routinely check all windows and doorsbefore closing your office or store for the night.It’s also advisable to recheck them upon arrival toensure nothing is amiss. Install video surveillancesystems at entrances and exits as well as in hallways,stairwells, garages and service counters wherefinancial transactions take place.Fire Extinguisher UsageFire ClassABCDEOCCUPATIONAL SAFETY AND HEALTHEasy steps to use a Fire Extinguisher:• Pull the Pin at the top of the extinguisher• Aim at the base of the fire• Squeeze the lever slowly• Sweep from side to side3LightingThe installation of adequate lighting and motionsensors is essential in isolated corridors, bathrooms,file and storage rooms, basements, parking garagesand facility grounds. Encourage employees to bevigilant when walking in darkened areas and to usethe buddy system if they’re arriving earlier or leavingmuch later than their peers.Awareness4Train employees to report any suspicious activity,strangers, unattended packages or perceivedsecurity risks. Encourage them to lock purses, walletsand other valuable items in drawers and cabinets ifthey’re going to be away from their desks. Shut downcomputers when not in use. Never leave client filesand confidential data out on unattended desktopsor within sight of unauthorized individuals, norallow company information to be discussed in thepresence of outsiders. Ensure that the receptionistdesk is never left vacant. Have an emergency plan toquickly secure data and equipment in the event of amandatory evacuation.5TechnologyInvest in anti-virus software and firewalls to protectyour workplace computers from viruses, worms andhacking. Routinely run back-up programs and storecopies of your critical files at an offsite location.Monitor employee email communications to ensurecompliance with confidentiality policies. Collectkeys, access cards and ID badges from workers wholeave your employment. Deactivate any of thesewhich allow electronic privileges and change anypasswords to which the employee previously hadaccess.ExplanationExtinguished fire from solid material like wood, paper, cloth and other flammable object.Extinguished fire from liquid like oil, paint, varnish, plastic and others.Extinguished fire from gasses like butane, acetylene, electrical wiring, fuse box, electrical device and others.Extinguished fire from metal like potassium, sodium, calcium and magnesium.Extinguished fire from cooking oil that are used commercially.6 7