Serious It's Official! NK Has Defaulted!

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An honorable member of the Coffee Shop Has Just Posted the Following:

SOILBUILD REIT CALLED UPON INSURANCE GUARANTEE FROM NK INGREDIENTS PTE.
LTD.

SB REIT Management Pte. Ltd., as manager of Soilbuild Business Space REIT (“Soilbuild REIT”, and

the manager of Soilbuild REIT, the “Manager”), wishes to announce that DBS Trustee Limited (in its

capacity as trustee of Soilbuild REIT) (the “Trustee”) has on 12 September 2017 issued a letter of

demand to NK Ingredients Pte. Ltd. (formerly known as NK Chemicals Pte Ltd) (“Tenant”) for arrears

amounting to S$3,421,120.33.

The Trustee holds an insurance guarantee issued in its favour amounting
to S$5,110,677. The Trustee called upon the insurance guarantee today in connection with nonobservance
of the Lease Agreement by the Tenant.

Pursuant to clause 6.1.1 of the lease agreement dated 15 February 2013 between the Trustee and the
Tenant (“Lease Agreement”), the Tenant is in default under the Lease Agreement for failure to pay
rent and any other sum payable under the Lease Agreement.

In accordance with clause 3.6.3 of the Lease Agreement, the Trustee is entitled to apply the whole or
part of the security deposit amount in or towards making good any loss or damage sustained by the
Trustee as a result of that default and any expense incurred by the Trustee in making good the loss
and damage, in any manner as may be prescribed by the Trustee. Clause 3.6.4 of the Lease Agreement
further states that the Tenant must pay to the Trustee an amount equal to the amount applied by the
Trustee under clause 3.6.3 as replacement of the part or whole of the relevant security deposit amount
applied, within seven days of demand.

The balance of the insurance guarantee of S$1,689,556.67 is equivalent to approximately four months
of rent. The Manager does not expect there to be a material immediate financial impact on Soilbuild
REIT’s distribution per unit (“DPU”) for the current financial year.

Based on the unaudited half year ended 30 June 2017 financial results of Soilbuild REIT, the DPU of
Soilbuild REIT was 2.955 cents. Purely for illustrative purposes, assuming Soilbuild REIT had
terminated the lease with the Tenant as at 1 January 2017, the DPU for the half year ended 30 June
2017 would be approximately 2.640 cents.

In the event there are any material developments, the Manager will release further announcements as
necessary on this matter.

By Order of the Board
SB REIT Management Pte. Ltd.
(UEN/Company Registration No. 201224644N)
As Manager of Soilbuild Business Space REIT
Roy Teo
Chief Executive Officer
18 September 2017


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