On 26 April 2018 ("Completion Date"), the Company announced that it had completed an issuance of 509,406,416 Class B Redeemable Convertible Preference Shares ("RCPS B") in the Company ("Issuance"). Accordingly, the total gross proceeds raised from the Issuance was RM356.6 million ("Issuance Proceeds"), to be utilised in the manner as set out in Section 3 of the Company's abridged prospectus dated 29 March 2018 ("Abridged Prospectus"). As set out in the Abridged Prospectus, RM75.9 million from the Issuance Proceeds raised were intended to be utilised for the additional capital commitment for 50% interest in the joint venture with Grosvenor Europe Investments Ltd ("Grosvenor") if Urban Value Add I (Spain) S.L. ("UrbanValue") decides to undertake the potential development projects in Madrid, Spain during the acquisition period under the joint venture arrangements. The Abridged Prospectus further set out that if there are no project(s) identified and the acquisition period has lapsed without a further extension to the acquisition period, the Company will seek its shareholders' approval to vary the use of proceed for other purposes.

As at the date of this announcement, the Company has yet to utilise RM75.9 million of the Issuance Proceeds previously earmarked for the said capital commitment for the joint venture with Grosvenor as no potential development projects were identified and the acquisition period shall expire on 12 July 2019. Arising from the above, the Board wishes to vary the utilisation of the RM75.9 million raised from the Issuance.

Further details on the Proposed Variation are set out in the attachment.

This announcement is dated 27 May 2019.