VALUATION REPORT OF PROPERTY DEPICTED AS LOT X IN SURVEY PLAN NO.

3400 DATED
08/02/2015 MADE BY NALIN HERATH, REGISTERED LICENSED SURVEYOR.

Prepared for: DPMC Assetline Holdings (Pvt) Ltd

120, 120A, Pannipitiya Road,
Battaramulla.

Prepared by: Upali Silva & Lochana Silva – Chartered Valuers (Pvt) Ltd.
58-2/1, Avissawella Road, Maharagama
M: 072 520 5290. E: [email protected]
 1st April, 2021

The Chairman
DPMC Assetline Holdings (Pvt) Ltd
120, 120A, Pannipitiya Road,
Battaramulla.

Dear Sir,

VALUATION REPORT OF PROPERTY DEPICTED AS LOT X IN SURVEY PLAN NO. 3400 DATED
08/02/2015 MADE BY NALIN HERATH, REGISTERED LICENSED SURVEYOR.

Following your instructions I have surveyed the aforementioned property on 01/04/2021.

I hereby declare that I have no undisclosed interest in the entity or the trust and fees are not
contingent in my estimated value. The opinion of the value is subject to assumptions and limitations
set forth therein.

The Fair Value of the subject property is more particularly described and identified on the attached
report.

Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date (IFRS 13).

My valuation was prepared on the basis of the property being in a satisfactory state of repair,
without carrying on a structural survey or an inspection of the woodwork or parts of the property,
which have been covered, unexposed or inaccessible nor arranged for tests to be carried on any
service installations. It should be understood that the Report does not neither purport to express
an opinion about nor any advise upon the uninspected parts and should not be considered as an
opinion or advise upon the condition of uninspected parts nor to be taken as any implied
representation or statement of such parts and my valuation reflects the state of repair, observed
at the time of survey.

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No account has been taken of any outstanding moneys due in respect of mortgage bonds, loans
and other charges.

With regard to aspects like tenure, title, planning and other statutory obligations, reference may
be made to the report and needs to be verified by solicitors acting on behalf of the client and /or
the proposed borrowers and in no way be considered as substitutes for the searches that should
be made.

Any part or whole of this valuation or any reference thereto should not be made or be published in
any published documents, circulars or statements in any way without written approval of the
undersigned prior to publication as to the form and context in which it may appear.

This valuation has been prepared for the sole use of the client with no responsibility being accepted
to third parties for the whole or any part of the contents of my report.

U.S. Silva L. I. Silva

Managing Director Director
Chartered Valuer (SL)/ Chartered Valuation Surveyor (UK) Chartered Valuation Surveyor (UK)

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 VALUATION REPORT
1. Identification of the client
DPMC Assetline Holdings (Pvt) Ltd
120, 120A, Pannipitiya Road,
Battaramulla.

2. Purpose of valuation
Fair value.

3. Name of applicant
DPMC Assetline Holdings (Pvt) Ltd
120, 120A, Pannipitiya Road,
Battaramulla.

4. Identification of the property& situation

Property depicted as Lot X in Survey Plan No. 3400 dated 12/02/2015 made by Nalin Herath,
Registered Licensed Surveyor, premises bearing Assmt. No. 114A, Janapriya Mawatha,
situated at Pattiya South within the Urban Council Limits of Panadura in Panadura Thalpiti
Debedda of Panadura Totamune, Kalutara District, Western Province.

Boundaries
North East South West
6th Cross Road Lot 3 in Plan No. Land claimed by Lot 2A in Plan No.
3437` Senarath formely of 2284
H. Yasapala Soysa.
Extent of the allotment: 0 A – 0 R – 11.15 P.

Rating Assessment particulars of the property

Assmt. No. 114A, Janapriya Mawatha.

4.1 Access
Proceed along D.S. Senanayake Mawatha from the center of the Panadura Junction, just
adjoining the Panadura bus stand, for about 30 meters to reach the subject property
which is on the right hand side.

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 Image 1: Access road

4.2 Locality
This area is mainly commercial cum residential Electricity, Main water supply are available,
To the area. Transport facilities are in close proximity. Panadura town has a very good
development with all facilities. Railway station Bus terminal, Police station, Hospital,
Schools, Temples, Churches, Hotels, Shopping Malls, restaurant, Super markets, etc.

Image 2: Map location

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5. Basis of value adopted
Unless otherwise requested, the reported value will be the fair value of the property.

6. Extent of the Investigation

6.1 Extent of the allotment
0 A – 0 R – 11.15 P.

6.2 Date of inspection of the property

01/04/2021

6.3 Description of the property

6.3.1 Shape/Lie
The land is flat, rectangular in shape, even level with the access road front part is concrete
paved having 31ft. – 26ft. wide carpeted road frontage, demarcated by a boundary wall
and external walls of existing building in parts and northern boundary is open to the access
road.

6.3.2 Plantations
Nil

6.3.3 Building
This is three storied building and details are as follows.
It’s roof is on steel frame fitted with gypsum board suspended ceiling, supported by
reinforced cement concrete columns and cross beams, brick walls plastered and painted
both ways, floors tiled, zinc aluminum framed glazed windows and doors, roller shutter
doors, glass facade with aluminum cladding to the front and concreted stairway to the
upper floors.

Accommodation-
Ground floor – Hall & 3 toilets.
1st Floor – Hall & toilet.
2nd Floor – Hall & toilet.

Floor areas
Ground floor – 2,193sq.ft.
1st Floor – 2,193sq.ft.
2nd Floor – 2,193sq.ft.
Total 6,579sq.ft.

6.3.4 Occupant
I A Jayasinghe & J B Pathangoda are currently on a lease.

6.3.5 Public utility services

Electricity and water supply available.

6.3.6 Environmental issues

I have not carried out an environmental study of the site. My Report is based on the
assumption that the property is neither contaminated nor affected by any environmental
hazard.

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6.3.7 Photographs of the property

7. Nature and sources of information relied upon

7.1 Title
No search has been made at the Land Registry. However, according to the copy of the Deed
of Transfer produced to me, DPMC Assetline Holdings (Pvt) Ltd claims title to the subject
property by and upon Deed of Transfer 5425 dated 19/02/2015 attested by A.A.H.W.
Jayasekara Attorney at Law & Notary Public.

7.2 Legal aspects

Non vesting certificate not available for perusal.

7.3 Survey Plan

Property depicted as Lot X in Survey Plan No. 3400 dated 12/02/2015 made by Nalin
Herath, Registered Licensed Surveyor.

7.4 Rent Act

Inapplicable

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7.5 Tenure
I A Jayasinghe & J B Pathangoda are currently on a lease.

8. The valuation approach

On income approach.

8.1 Valuation date: 31/03/2021

8.2 Interest valued

Value of encumbered freehold interest.

8.3 Evidence of value

Similar allotments in the area fetch rates between Rs. 1,750,000/- to Rs. 2,250,000/- per
perch in the locality and in view of the location, physical feature enjoyed by the subject lot
with amenities and facilities available, it is reasonable to assign a value base on a rate of
Rs. 2,000,000/- per perch due to the site’s suitability, physical features, extent and
prevalent demand and suitability for mixed development commercial uses.

The rental pattern for similar commercial buildings from similar floor areas in this area
ranges from Rs. 150,000/- to Rs. 200,000/- per month.

8.5 Valuation on income method

Lease Agrement # 97
Lease started 1/3/2020
Lease end date 28/02/2023
Term 3
Remaining term 23 months

Tenant A Jayasinghe & J B Pethangoda

Landlord DPMC Assetline Holdings

Monthly installments 100,000 1/3/2021

105,000 1/3/2022

Monthly rent as at 31.03.2021 100,000.00

Less: all outgoings @ 30% 30,000.00
Net income 70,000.00
YP @6.5% p.a. for 11 months 10.65073478 745,551.43

Monthly rent as at 01/03/2022 105,000.00

Less: all outgoings @ 30% 31,500.00
Net income 73,500.00
YP @6.5% p.a. for 12 months deferred for 11 months 10.91943968 802,578.82

Estimated monthly rent as at 31.03.2021 for upper floors 60,000.00

Less: all outgoings @ 30% 18,000.00
Net income 42,000.00
YP @6.5% p.a. for 11 months 10.65073478 447,330.86

Estimated monthly rent as at 01/03/2022 62,500.00

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Less: all outgoings @ 30% 18,750.00
Net income 43,750.00
YP @6.5% p.a. for 12 months deferred for 11 months 10.91943968 477,725.49

Reversion to site value

11.15P @ Rs. 2,100,000 per perch 23,415,000.00

Value of buildings
6,579sq.ft @ Rs. 5,300/- per sq.ft. 34,868,700.00
58,283,700.00

PV for 23 months @ 8% 0.8629 50,293,004.73

52,766,191.33
Say Rs. 52,750,000.00

Fair value of the property Rs. 52,750,000.00

I am of the opinion that the Fair Value of the encumbered Freehold Interest in the asset
component of land for the purposes of financial reporting is estimated at Rupees fifty two
million seven hundred and fifty thousand. (Rs. 52,750,000.00)

Note
a) With restrictions on Covid-19 easing and confidence returning into the Real Estate
Market of residential and commercial properties are showing signs of re-gaining
their original values. The most likelihood is to gain an upward trend as a result of
increasingly building up consumer confidence and commercial activities. During the
pandemic period, it has specifically increased investor confidence in investing in
Real Estate in comparison to the traditional other modes of traditional
investments. Given the unknown future impact that Covid-19 might have on the
Real Estate Market, I recommend that you keep the valuation of this property
under frequent review.

b) Computation of values have been considered on information and data provided to

us by DPMC Assetline Holdings (Pvt) Ltd and information collected on the
inspection. It has to be noted that information pertaining to the floor areas and
extents have been taken on information furnished to us as approved plans have
not been furnished to us.

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9. Certificate
I, U.S. Silva, certify that I have inspected and valued the properties offered as security and
that I have satisfied myself that they tally with extents, descriptions and valuations as
above.

The valuations are done according to the standards stipulated by the R.I.C.S. & the I.V.S.L.

This report is confidential to the above mentioned client for the purpose of which it
refers and not allowed to be used by any other party for any other purpose.

U.S. Silva
Chartered Valuer (SL)/Chartered Valuation Surveyor (UK)

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