PRESS RELEASE

Damansara Realty To Raise Up To RM150 Million For Property Projects, Working Capital By Issuing Redeemable Convertible Notes

KUALA LUMPUR, 2 June 2016 – Damansara Realty Berhad (“DBhd” or the “Group”) said today it will issue redeemable convertible notes (“Notes”) to raise up to RM150 million to propel property development opportunities in Malaysia as a major catalyst for growth following its corporate restructuring in 2014.

Bursa Main Board-listed DBhd will issue the unsecured and non-guaranteed Notes in four main tranches to Advance Opportunities Fund I (“AOF”), an open-ended fund established in the Cayman Islands. Advance Capital Partners Asset Management Private Limited (“APCAM”) will be AOF’s discretionary investment manager.

The Notes are due in 2019 and will pay an annual interest of 0.1%. DBhd will raise RM20 million in the first tranche, RM30 million in the second and RM50 million each in the third and fourth tranches. The first tranche is expected to be issued by the second half of 2016.

The Notes can be converted into ordinary shares of DBhd. Based on the minimum conversion price of RM0.50, which is the par value of DBhd’s shares, the maximum number of conversion shares to be issued will be 300 million.

DBhd intends to use RM87.1 million of the proceeds to develop projects in Putrajaya, Kuantan and Johor Bahru. In Putrajaya, DBhd will develop 1,350 residential units and 45 commercial units at a gross development cost (“GDC”) of approximately RM467.3 million. The project in Kuantan involves 49 linked and semi-detached units with a GDC of approximately RM42.6 million. In Johor Bahru, DBhd intends to develop 50 shop lots in Damansara Aliff.

The Group expects to use RM50.9 million of the proceeds for working capital. It recently secured contract to provide cleaning services for the Kuala Lumpur International Airport and is actively tendering for new projects in areas such as parking operations, hospital planning and facility management.

In 2014 DBhd underwent a corporate restructuring which saw the entry of Seaview Holdings Sdn Bhd (“Seaview Holdings”) as controlling shareholder following its acquisition of a 51%-stake from Johor Corp, the state investment agency. Johor Corp continues to hold a 14.2% stake in DBhd.

“Apart from strengthening our balance sheet, the Notes confer the Group the flexibility to drawdown funds when we need it. The funding comes at a critical juncture which will accelerate the growth of our property arm even as we expand our project management division,” said Tuan Haji Mohd Fazlin Shah Bin Mohd Salleh, DBhd’s Group Chief Executive Officer.

“DBhd is charting a new chapter of growth which we believe will enhance long term shareholder value. The Notes will strengthen our balance sheet significantly and we hope this exercise will boost DBhd’s trading liquidity on Bursa Malaysia,” said YB Dato’ Daing A Malek Bin Daing A Rahaman, DBhd’s Executive Vice Chairman and controlling shareholder of DBhd via Seaview Holdings.

The issuance of the Notes is subject to approvals from Bursa Securities, other relevant authorities and shareholders.

DBhd had on 15 April 2016 announced the proposed issuance of 154.7 million free warrants on the basis of one free warrant for every two existing DBhd shares. Assuming all warrants are converted, DBhd’s issued shareholder base will be enlarged to 464.1 million shares.

## End of Release ##

Issued on behalf of the Group by WeR1 Communications Sdn Bhd.

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Level 35-02 (East Wing), Q Sentral
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Kuala Lumpur 50470, Malaysia
Tel: (603) 2731 9244
Ian Lau,

Sophia Halim,

About Damansara Realty Berhad

Damansara Realty Berhad (“DBhd”) is listed on the Main Board of the Bursa Malaysia Securities Berhad. Established on 29 December 1960, DBhd is an investment holding company with core competencies in construction, project management, property development, hospital consultancy, integrated facilities management, car park operations, and industrial cleaning.

For more information, please visit www.dbhd.com.my or email


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