Investment Strategy Considerations of New Site 4

APJ employs either one of or a combination of the following strategies that are effective for different investment opportunities.

a) Core Value

APJ stresses the importance of investing in properties that have fundamentally strong attributes which will increase or preserve the property values due to location, quality of building and other factors.

b) Operational Improvement:

APJ acquires properties which have not realized their full potential due to physical obsoleteness, low occupancy levels, below-market rents and/or excessive expenses or non-optimal usage, and improve cash flow by renovating or rationalizing them.

c) Optimal Financial Leverage:

APJ employs leverage strategies optimal for each specific situation. For example, APJ seeks higher levels of debt for properties which possess very stable cash flow characteristics, e.g. already high occupancy rate with very low turnover possibilities. This enables the investment to achieve optimal returns. Conversely, as to properties which may run higher levels of cash flow volatility, despite their high yielding attributes and potential, APJ employs low leverage strategies to avoid inefficient risk-return trade-offs.

d) Arbitrage:

APJ takes advantage of the arbitrage opportunities that exist for astute professional investors under various circumstances that different market conditions present. Currently, APJ is aggressively seeking bargain opportunities that have been created from the current global financial turmoil.

e) Other Opportunistic Situations:

APJ pursues other opportunistic situations whereby real estate can be acquired at low cost as a result of complications arising from the resolution of distressed debt situations and/or corporate restructurings, corporate acquisitions and other special situations.