FROM: Nur Rasyidah Kamaruddin - Quantity Surveyor

DATE: 14 September 2016

SUBJECT: PROJECT FEASIBILITY ASSESSMENT SUMMARY

PROJECT : PROPOSED NEW DEVELOPMENT HOSPITAL AT INCLUDING 6 STOREY HOTEL (300) BEDDED AT CYBERJAYA
DEVELOPER : T KIARA CONSTRUCTION SDN BHD

ITEM DESCRIPTION NO OF UNIT Gross Floor Area RATE/UNITS (RM) AMT PER DAY(RM) ITEM

A Hotel A
1 Single Room 36 320 273 9,816 1
2 Standard Room 240 900 512 122,795 2
3 Double Deluxe Room 24 1000 709 17,010 3

A Hospital A
1 Bedded 250 350 623 155,822 1
2 Intensive Care Bedded 250 450 801 200,342 2
3 Outpatient Clinics 1 1000 36 1,781 3
4 Emergency 1 1000 36 1,781 4

TOTAL 802 509,347

Particular (RM) (RM)

Total Revenue after Yr 10 687,872,624

Total Operational cost at yr 10 401,568,883
Initial investment 144,664,380
Total Cost 546,233,263
 DZ HOLDING SDN BHD
Appendix Estimated Development Feasibility

PROJECT : PROPOSED NEW DEVELOPMENT HOSPITAL AT INCLUDING 6 STOREY HOTEL (300) BEDDED AT CYBERJAYA
DEVELOPER : DZ HOLDING SDN BHD
CONSTRUCTION PROGRESS
DZ Pricing Strategy Sales @ 100% take-up Y1 Y2 Y3 Y4 Y5
Item Total Unit Phase Total Units Average NFA (sq ft) Price (psf) Proposed Price/Unit Total Sale Amount Mar'17-Aug'17 Sep'17-Feb'18 Mar'18-Aug'18 Sep'18-Feb'19 Mar'19-Aug'19 Sep'19-Feb'20 Mar'20-Aug'20 Sep'20-Feb'21 Mar'21-Aug'21 Sep'21-Feb'22 Sep'22-Feb'23
50.00% 60.00% 70.00% 90.00% 100.00%
Hotel
1 Single Room 36 36 320 RM311.00 RM99,520 RM3,582,720
2 Standard Room 240 240 450 RM415.00 RM186,750 RM44,820,000 Construction Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8
3 Double Deluxe Room 24 24 650 RM398.00 RM258,700 RM6,208,800 8.00% 17.00% 32.00% 31.00% 8.50% 3.50% 0.00% 0.00% 100.00%

Hospital
8.00% 17.00% 32.00% 31.00% 8.50% 3.50% 0.00% 0.00% 100.00%
1 Bedded 250 250 350 RM650.00 RM227,500 RM56,875,000 Average 8.00% 17.00% 32.00% 31.00% 8.50% 3.50% 0.00% 0.00% 100.00%
2 Intensive Care Bedded 250 250 450 RM650.00 RM292,500 RM73,125,000
3 Outpatient Clinics 1 1 1,000 RM650.00 RM650,000 RM650,000 GDC @ Developer's Offer Price
4 Emergency 1 1 1,000 RM650.00 RM650,000 RM650,000 Item Description Amount Elemental Breakdown
A Land RM20,448,820 7.39%
B Preliminaries RM6,642,685 2.40%
C Building Works RM108,559,955 39.24%
D Infrastructure Works RM14,853,475 5.37%
TOTAL 802 802 RM185,911,520 551818600 E Pre-Development cost RM14,608,265 5.28% 165,113,200.00 491,136,000.00
- F Hospital Operational Cost RM111,546,912 40.32% 18591152000%
111,546,912.00 GROSS DEVELOPMENT COST RM276,660,112 100.00%

Construction progress 8.00% 17.00% 32.00% 31.00% 8.50% 3.50% 0.00% 0.00%
0 0.5 1 1.5 2 2.5 3 3.5 4
TOTAL SALES 0 Y1 Y2 Y3 Y4 Y5 Y6 Y7
Mar'17-Aug'17 Sep'17-Feb'18 Mar'18-Aug'18 Sep'18-Feb'19 Mar'19-Aug'19 Sep'19-Feb'20 Mar'20-Aug'20 Sep'20-Feb'21 Mar'21-Aug'21 Sep'21-Feb'22 Mar'22-Aug'22 Sep'22-Feb'23 0 0 0
(RM) (RM) (RM) (RM) (RM) (RM) (RM) (RM)
Gross Development Value (GDV)

Hotel

1 Single Room RM3,582,720 - 1,791,360 2,149,632.00 2,507,904 3,224,448.00 3,582,720.00 13,256,064.00

2 Standard Room RM44,820,000 - 22,410,000 26,892,000.00 31,374,000 40,338,000.00 44,820,000.00 165,834,000.00
3 Double Deluxe Room RM6,208,800 - 3,104,400 3,725,280.00 4,346,160 5,587,920.00 6,208,800.00 22,972,560.00
- -
Hospital - -
-
1 Bedded RM56,875,000 - 28,437,500 34,125,000.00 39,812,500 51,187,500.00 56,875,000.00 210,437,500.00
2 Intensive Care Bedded RM73,125,000 - 36,562,500 43,875,000.00 51,187,500 65,812,500.00 73,125,000.00 270,562,500.00
3 Outpatient Clinics RM650,000 - 325,000 390,000.00 455,000 585,000.00 650,000.00 2,405,000.00
4 Emergency RM650,000 - 325,000 390,000.00 455,000 585,000.00 650,000.00 2,405,000.00

Total GDV - Cash Inflow (i) RM185,911,520 RM0 RM0 RM0 RM0 RM0 RM0 RM0 RM92,955,760 111,546,912.00 130,138,064 167,320,368.00 RM185,911,520 RM0 RM0 RM0 RM687,872,624

Less :

Gross Development Cost (GDC)

A Land cost RM20,448,820 20,448,820 - ### - - ### - - -
B Preliminaries RM6,642,685 - 531,415 1,129,256 2,125,659 2,059,232 564,628 232,494 - 6,642,685.00
C Building Works RM108,559,955 - 8,684,796 18,455,192 34,739,186 33,653,586 9,227,596 3,799,598 - 108,559,955.00
D Infrastructure Works RM14,853,475 - 1,188,278 2,525,091 4,753,112 4,604,577 1,262,545 519,872 - 14,853,475.00
E Pre-Development Cost RM14,608,265 - 1,168,661 2,483,405 4,674,645 4,528,562 1,241,703 511,289 - 14,608,265.00
F Hospital Operational Cost RM111,546,912 - 55,773,456 66,928,147 78,082,838 100,392,221 100,392,221 401,568,883.20

Total GDC - Cash Outflow (ii) RM276,660,112 RM20,448,820 RM11,573,150 RM24,592,945 RM46,292,602 RM44,845,958 RM12,296,472 RM5,063,253 RM55,773,456 RM66,928,147 RM78,082,838 RM100,392,221 RM100,392,221 RM0 RM0 RM0 RM546,233,263

Gross Cash In/(Out) Flow (iv) = (i) - (ii) - (iii) (RM90,748,592) (RM20,448,820) (RM11,573,150) (RM24,592,945) (RM46,292,602) (RM44,845,958) (RM12,296,472) (RM5,063,253) RM37,182,304 RM44,618,765 RM52,055,226 RM66,928,147 RM85,519,299 RM0 RM0 RM0 RM141,639,361
Cummulative Gross Cash In/(Out) Flow (RM20,448,820) (RM32,021,970) (RM56,614,915) (RM102,907,517) (RM147,753,474) (RM160,049,947) (RM165,113,200) (RM127,930,896) (RM83,312,131) (RM31,256,906) RM35,671,242 RM121,190,541 RM121,190,541 RM121,190,541 RM121,190,541

TOTAL CASH OUTFLOW RM276,660,112 RM20,448,820 RM11,573,150 RM24,592,945 RM46,292,602 RM44,845,958 RM12,296,472 RM5,063,253 RM55,773,456 RM66,928,147 RM78,082,838 RM100,392,221 RM100,392,221 RM0 RM0 RM0 RM546,233,263
NET CASH FLOW FROM OPERATION (RM90,748,592) (RM20,448,820) (RM11,573,150) (RM24,592,945) (RM46,292,602) (RM44,845,958) (RM12,296,472) (RM5,063,253) RM37,182,304 RM44,618,765 RM52,055,226 RM66,928,147 RM85,519,299 RM0 RM0 RM0 RM141,639,361
PV RATE @ 6% 1.000 0.971 0.943 0.916 0.890 0.864 0.840 0.816 0.792
NPV OF NET CASH FLOW RM10 (RM20,448,820) (RM11,240,837) (RM23,200,891) (RM42,418,254) (RM39,912,743) (RM10,629,574) (RM4,251,205) RM30,322,553 RM112,191,640

Internal Rate of Return Calculation Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
IRR 8.72% (20,448,820) (11,573,150) (24,592,945) (46,292,602) (44,845,958) (12,296,472) (5,063,253) 37,182,304 44,618,765 52,055,226 66,928,147 85,519,299 - - - 141,639,361
ROI = 22%

ABBREVIATIONS:
1) NFA = Net Floor Area
2) PV = Present Value
3) NPV = Net Present Value
 DZ HOLDING SDN BHD
PROPOSED NEW DEVELOPMENT HOSPITAL AT INCLUDING 6 STOREY HOTEL (300) BEDDED AT CYBERJAYA
MODULE B
FEASIBILITY STUDY
DEVELOPER'S OFFER (GDC)
DZ'S GDV MARKET PRICE AVG. % BELOW
ITEM DESCRIPTION NO OF UNIT NFA/UNIT
COST PSF COST /UNIT AMOUNT PRICE PSF PRICE /UNIT AMOUNT PRICE PSF PRICE /UNIT AMOUNT MARKET

A Hotel

1 Single Room 36 320 250.00 80,000 2,880,000 311.00 99,520 3,582,720 465.00 148,800 5,356,800 67%

2 Standard Room 240 450 250.00 112,500 27,000,000 415.00 186,750 44,820,000 465.00 209,250 50,220,000 89%

3 Double Deluxe Room 24 650 250.00 162,500 3,900,000 398.00 258,700 6,208,800 465.00 302,250 7,254,000 86%

A Hospital

1 Bedded 250 350 500.00 175,000 43,750,000 650.00 227,500 56,875,000 650.00 227,500 56,875,000 100%

2 Intensive Care Bedded 250 450 500.00 225,000 56,250,000 650.00 292,500 73,125,000 650.00 292,500 73,125,000 100%

3 Outpatient Clinics 1 1000 500.00 500,000 500,000 650.00 650,000 650,000 650.00 650,000 650,000 100%

4 Emergency 1 1000 500.00 500,000 500,000 650.00 650,000 650,000 650.00 650,000 650,000 100%

TOTAL 802 100.20 134,780,000 161.99 185,911,520 186.38 194,130,800

MAINTENANCE COST (DZ HOMES ONLY) FEASIBILITY STUDY SUMMARY

Net Floor Area (NFA) 337,120 sf Surplus / (Deficit) 51,131,520
Rate 0.15 psf Other Cost Inccured by DZ Err:509
Duration 120 months Gross Profit Err:509
Total ( % Against GDC) 6,068,160 4.50% % Against GDV Err:509

OTHER COST INCURRED BY DZ DZ'S FINANCIAL EXPOSURE

Finance Charges Err:509 Err:509 Total Maintenance Cost 6,068,160
Legal Fees 673,900 0.50% Other Cost Inccured by DZ Err:509
FFE - Amenities 269,560 0.20% Total Gross Development Cost 134,780,000
Info. Com.& Tech (ICT) 1,604,000 1.19% Total Financial Exposure Err:509
Supervision Cost 2,800,000 2.08% Total GDV 185,911,520
Marketing Cost 1,347,800 1.00% Assistance Required Err:509
Contigencies 2,021,700 1.50% % Against GDV Err:509
Moratorium 200,500 0.15%
Legal Fees (Purchaser) 1,604,000 1.19%
GST Charges (6%) 7,012,718 5.20%
Total (% Against GDC) Err:509 Err:509

HOTEL HOSPITAL 641,640

TOTAL AMOUNT
ITEM DESCRIPTION AMOUNT AMOUNT
COST PSF / NFA % COST PSF / NFA % (RM)
(RM) (RM) 25,000 gfa podium
1 Land 36.00 10.00% 12,136,320 95.00 19.00% 8,312,500 20,448,820 6.55 Nfa amenities
2 Preliminaries 13.00 3.61% 4,382,560 25.83 5.17% 2,260,125 6,642,685 5.11% Acre
3 Building 143.10 39.75% 48,241,872 195.11 39.02% 17,072,125 65,313,997 193.74 % over TCC
4 Podium Parking 45.00 12.50% 15,170,400 0.00 0.00% - 15,170,400 23.64 psf/NFA Building
5 Amenities 2.40 0.67% 809,088 0.00 0.00% - 809,088 32.36 psf/gfa Podium
6 M&E Works 39.00 10.83% 13,147,680 68.25 13.65% 5,971,875 19,119,555 29.27% psf/NFA Amenities
7 Foundation Works 17.00 4.72% 5,731,040 27.61 5.52% 2,415,875 8,146,915 24.17 % over building
8 Infrastructure Works 30.00 8.33% 10,113,600 54.17 10.83% 4,739,875 14,853,475 2,267,706 psf/NFA Building
9 Pre-development cost 34.50 9.58% 11,630,640 34.03 6.81% 2,977,625 14,608,265 11.23% RM / Acre
TOTAL 360.00 100.00% 121,363,200 500.00 100.00% 43,750,000 165,113,200 130,056,115 % over TCC
Average PSF @ 360.00 500.00 total TCC
*Preliminary cost breakdown proposed by land owner/developer.
110.00 -
GST Calculation (6%) Amount (RM)
GDC without Land 114,331,180
Other cost incurred by DZ Holding (item *) 2,547,460
Total GDC (for GST calculation) 116,878,640
GST Calculation (6%) 7,012,718 5.20%
HOTEL

TYPE ROOM

TYPE ROOM A = SUPER SINGLE ROOM (42.2M2)

TYPE ROOM B = STANDARD ROOM (43.2M2)
TYPE ROOM C = DOUBLE DULUXE ROOM (44M2)
TYPE ROOM C = DOUBLE DULUXE ROOM CORNER (46M2)

TOTAL BEDDED = 300 ROOM