PROPOSED OFFICE: A UNIQUE

INVESTMENT OPPORUNTINITY

WHY INVEST IN COMMERCIAL PROPERTY?

• NO NEED FOR INTERIOR DECORATING– Potential tenants usually pay to fit-out

(interior decorate) their units• LONGER LEASES

– Average lease rate in BGC is 3-5 years– Spend less time stressed when your

residential tenants 1 year term is almost over

• PLETHORA OF LEASING AGENTS– You will be able to have multi-billion dollar

companies like Jones Lang LaSalle, CBRE, Colliers and KMCMag lease your unit

– No need to rely on a single broker to help you lease

• PRIME FACTORS– Apart from other developments by being

located within the city center, this building is integrated into a master planned community

Why invest in Commercial Real Estate:

• Capital appreciation– Colliers predicts BGC land values to

increase by 9.8% in 2014*– Combination a world-class office building,

an emergent business district, constricted supply and Ayala brand name should contribute to gains in capital appreciation

• Constricted supply– JLL expects a market shortage of offices

by 2016 with current vacancy rates already at 0.96% for BGC as of Q1 2014

– Short supply = higher demand = higher rent/re-sale value

– Headline rate for Ayala’s BGC offices is 875 per square meter with a 10% rental escalation rate**

* Colliers Q4-2013 Market Overview**APMC Rental and Escalation Rates as of May 2014

Why invest in Commercial Real

Estate:

Return On Investment = Yield on InvestmentCost of Investment

= 875/sq.m. X 12 months/yr.165,000/sq.m. (gross of VAT)

= 6.3 % per annum vs. T-bills rate of 0.31%TD rate of 2.48%SD rate of 5.50%

* Based on current rental rates of High Street 2nd floor offices

NOTE:Prevailing lease rate is P800/sqm on GFA, converted to P940/sqm on GLAT-bills : Treasury billsTD : Time DepositSD : Savings Deposit (Peso)*figures are based on BSP per annum rates as of April 15-19, 2013

Return on Investment

Fort Bonifacio Rental Projections:

• Based on APMC’s current lease rate of 875 psqm at a rent escalation rate of 10% per annum

Rent Escalation (P.A.)

ProjectedRental Rates

(2018)

Return on Investment

Low End (3%) 985 psqm 7.1%Mid End (5%) 1,064 psqm 7.7%Current (10%) 1,281 psqm 9.3%

Stable Rental Potential

• Since offices have a minimum lease length of 3-5 years, your property gets rented and stays rented

• Proposed office will be located on the corner of 11th street and 32nd avenue

• Located next to an Ayala Mall• One of the highest visibility locations within

BGC

Typical Reservation Details and Payment Schemes

How much is the reservation fee?− Php 100,000 per unit and Php 50,000 per parking to BGSouth

Properties Inc.,

What are the payment terms and corresponding discounts?

CASH TERMS− Cash 30 with 8% discount− Cash 60 with 7% discount− Cash 90 with 5% discount

DEFERRED TERMS− 50% DP, 50% over 48 months with 2% discount− 30% DP, 70% over 48 months

PROMO TERM− 20% DP, 80% over 48 months

Standard bulk discounts will apply.