OUE Commercial REIT - Annual Report 2021

Formerly known as Mandarin Orchard Singapore, the new Hilton Singapore Orchard is Hilton’s flagship hotel in Singapore and its largest in Asia Pacific. Following an extensive refurbishment, the re-branded property features 1,080 guestrooms and suites offering views of the city skyline, complemented by versatile meeting facilities and exciting dining concepts comprising both new and renowned favourites. Hilton Singapore Orchard further elevates the city’s culinary scene with five curated dining concepts including the award-winning Chatterbox, the two Michelin-starred Shisen Hanten by Chen Kentaro, and a fresh Italian dining experience at Osteria Mozza by famed American chef Nancy Silverton. Offering one of the largest event spaces in the city, Hilton Singapore Orchard features two uniquely designed and pillarless ballrooms fitted with state-of-the-art LED walls, lighting and sound technologies that can cater up to 1,000 guests and a dedicated pre-function area. Situated in the heart of Orchard Road and just under a half hour drive from Singapore Changi Airport, the hotel enjoys a strong flow of international tourists, business travellers and locals in its long history of operations in Singapore since 1971. The hotel offers easy accessibility, being within walking distance of both Somerset and Orchard MRT Stations, in addition to being well-served by a network of major roads. Guests travelling for medical purposes also appreciate the close proximity to a major medical cluster and specialist medical centres. Hilton Singapore Orchard is certified Green Mark Gold by the BCA in Singapore. Notes: 1 Based on valuation carried out by Savills Valuation and Professional Services (S) Pte Ltd as at 31 December 2021. Valuation was determined by Income Capitalisation Method, Discounted Cash Flow Analysis and Direct Comparison Method 2 Based on valuation as of the merger with OUE Hospitality Trust effective from 4 September 2019 3 Out of the 91,999.8 sq m of gross floor area at Hilton Singapore Orchard, approximately 15,506.4 sq m is for commercial use which is not exclusively for hotel guests only 4 The rental under the master lease will be the minimum rent if the amount of variable rent for that operating year is less than the amount of minimum rent PROPERTY DESCRIPTION Located in the heart of Singapore’s premier shopping and entertainment district Orchard Road, comprising 1,080 guest rooms distributed across two towers, five dining outlets and 2,400 sq m of event space TITLE 99-year leasehold title from 1 July 1957 GROSS FLOOR AREA 3 91,999.8 sq m (990,228 sq ft) MASTER LEASE DETAILS Master Lessee: OUE Limited Term: Initial term of 15 years to expire in July 2028 with an option for the Master Lessee to extend for another 15 years upon expiry Lease rental: Variable rent comprising sum of: i. 33.0% of gross operating revenue; and ii. 27.5% of gross operating profit; subject to minimum rent of S$45.0 million per annum 4 49 A N N U A L R E P O R T 2 0 2 1