REIT Financial News - UPDATE ON STARHILL GLOBAL REIT’S JAPAN PORTFOLIO

The master leases and property management agreements with Future Revolution K. K. (“Future Revolution”) for Starhill Global REIT’s portfolio of seven properties in Japan have been terminated with effect from 30 November 2009. This will mitigate tenant concentration risks with Future Revolution.  - see report

• Starhill Global ML K.K., Starhill Global REIT’s special purpose vehicle, has assumed the roles of master lessee for the seven properties and sub-lessor under the sub-lease agreements with the end-tenants with effect from 1 December 2009.
  
• Consents have been received from approximately 94% of end tenants (based on net lettable area (NLA)) to succeed Future Revolution’s position under the respective sub-lease agreements.
• Savills Japan K.K. has replaced Future Revolution as the local property manager for the seven properties with effect from 1 December 2009.
• The Manager will work closely with Savills Japan K.K. to achieve higher occupancy for the portfolio.
• As at 30 September 2009, Starhill Global REIT’s Japan portfolio of seven properties enjoyed 100% occupancy except for Daikanyama (88%) and Holon L (33%). The portfolio contributed 7.5% (S$7.5 million) and 7.9% (S$6.3 million) to Starhill Global REIT’s gross revenue and net property income respectively for the nine months ended 30 September 2009.