(a business trust constituted on 22 February 2011 under the laws of the Republic of Singapore) Managed by Perennial Retail Trust Management Pte. Ltd.

PROPOSED ACQUISITION OF INTEREST IN LONGEMONT DEVELOPMENT

1. INTRODUCTION

Perennial China Retail Trust Management Pte. Ltd., as trustee-manager of Perennial China Retail Trust (“PCRT”, and as trustee-manager of PCRT, the “Trustee-Manager”), is pleased to announce that PCRT has through its wholly-owned subsidiary, Perennial China Retail Pte. Ltd. (“PCRPL”), entered into a master framework agreement (the “Framework Agreement”) which will ultimately lead to PCRPL acquiring an interest of 50.0% (the “Chengdu Longemont Mall Interest”) in Chengdu Longemont Shopping Mall Development (the “Chengdu Longemont Mall”).

The other parties to the Framework Agreement are Mr Tong Jinquan, Summit Real Estate Development Co., Ltd. (“Shanghai Summit”), Chengdu Summit Real Estate Development Co., Ltd. (“Chengdu Summit”), Chengdu Ruifeng Real Estate Development Co., Ltd. (“Chengdu RuiFeng”) and Shanghai Summit Pte. Ltd.

The Framework Agreement has been entered into pursuant to the option (the “Chengdu Longemont Mall Interest Option”) granted on 21 March 2011 by Shanghai Summit (Group) Co., Ltd (“Shanghai Summit (Group)”) and Shanghai Summit to Perennial Real Estate Pte. Ltd. and PCRPL for the acquisition of the Chengdu Longemont Mall Interest (the “Acquisition”). Certain details concerning the Chengdu Longemont Mall Interest Option are set out in the prospectus of PCRT dated 27 May 2011 (the “Prospectus”).

The remaining 50.0% interest will be held by the Summit Group (comprising Shanghai Summit (Group) and its subsidiaries), of which Mr Tong Jinquan is the founder.

2. ACQUISITION OF THE CHENGDU LONGEMONT MALL INTEREST

2.1 Information on Chengdu Longemont Mall

The Chengdu Longemont Mall, measuring approximately 455,2601 square metres (“sqm”) in gross floor area (“GFA”), of which approximately 365,000 sqm1 is expected to be retail GFA, is part of the 1.7 million sqm2 Chengdu Longemont mixed-use development, and is sited in Chenghua District within the Third Ring Road of South-East Chengdu, Sichuan province, China. The Chengdu Longemont Mall is strategically located adjacent to and will be directly- connected via its basement level to the operational Chengdu East High-Speed Railway (“HSR”) Station, a newly-built major transportation hub comprising the inter-city high-speed railway, Chengdu city’s intra-city subway (expected to serve Lines 2 and 7), long and short distance bus routes and taxi connections. An area spanning 12 square kilometres

1 Based on architectural plans prepared by the relevant architects and may differ from the actual GFA of the completed property. 2 Based on information provided by the Summit Group.

1 surrounding the Chengdu East HSR Station has been designated as Chengdu’s new Central Business District (“CBD”) and is increasingly being built-up with many residential apartments, commercial offices and business centres.

The Chengdu Longemont Mall is one part of the Chengdu Longemont mixed-use development that the Summit Group is developing on four plots of prime land surrounding and adjacent to the Chengdu East HSR Station. Amongst the four land plots, the land plot on which the Chengdu Longemont Mall will be sited is considered by the Trustee-Manager to be the most prime in terms of connectivity, as it is strategically located at the intersection of two of Chengdu city’s intra-city subway lines (expected to serve Lines 2 and 7) and has immediate access to the mixed-use development’s local bus interchange as well as the taxi stand. The Summit Group is expected to develop office towers, a convention centre, a hotel and a wholesale centre on the remaining three plots of land3.

The Chengdu Longemont Mall will offer a myriad of retail and entertainment choices targeted at the middle-income shoppers, including a supermarket, an amusement park, local and international fashion, food and beverage brands and retailers. The Chengdu Longemont Mall is expected to commence operations in the third quarter of 2014.

2.2 Key Financial Terms

2.2.1 Purchase Consideration

Under the Framework Agreement, the Chengdu Longemont Mall Interest shall be acquired at an aggregate purchase consideration of approximately RMB2.28 billion (or approximately S$455.0 million) (the “Purchase Consideration”). The Purchase Consideration has been arrived at based on the agreed purchase price of RMB10,000 per sqm on a “completed” basis, pursuant to the terms of the Chengdu Longemont Mall Interest Option as described in the Prospectus.

Pursuant to the terms of the Framework Agreement, the Purchase Consideration shall be paid in stages on a progressive basis, being:

(a) 15.0% payable upon the obtaining of certain permits in connection with the underlying land in respect of the Chengdu Longemont Mall (the “Underlying Land”) and construction of the Chengdu Longemont Mall (targeted to be payable in first quarter of 2012);

(b) an additional 40.0% payable upon the “topping-out” of the Chengdu Longemont Mall (targeted to be payable in third quarter of 2013);

(c) an additional 40.0% payable upon the commencement of operations of no less than 70% of the commercial area of the Chengdu Longemont Mall (targeted to be payable in the third quarter of 2014); and

(d) the final 5.0% being payable upon the obtaining of the relevant building title deed as well as other relevant governmental approvals in respect of the Chengdu Longemont Mall (targeted to be payable in the fourth quarter of 2014).

3 Such plans are subject to changes.

2 2.2.2 Total Estimated Acquisition Cost

The total cost of the Acquisition is approximately S$467.2 million, comprising:

(a) the Purchase Consideration of RMB2.28 billion (or approximately S$455.0 million);

(b) the acquisition fee of approximately S$6.2 million (being 1.35% of the Purchase Consideration) payable to the Trustee-Manager pursuant to the trust deed dated 22 February 2011 constituting PCRT (as amended), which will be paid in cash and/or Units; and

(c) the estimated professional and other fees and expenses of approximately S$6.0 million which will be borne by PCRT in connection with the Acquisition.

2.2.3 Additional New Earn-Out of RMB226.5 million (“New Earn-Out”)

In view of market volatility, the Trustee-Manager has negotiated the New Earn-Out with the Summit Group to further strengthen the Trustee-Manager’s capacity to deliver the Total Distribution Amount set out in Projection Year 2012 and to also strengthen cash flow for distribution in the first half of 2013

The New Earn-Out is expected to provide unitholders of PCRT (“Unitholders”) greater assurance that the forecast total distribution amount for Projection Year 2012 can be achieved.

2.3 The Framework Agreement

2.3.1 Transaction structure

The Trustee-Manager has negotiated the Framework Agreement on an arms’ length basis. The Framework Agreement provides for, among other things, the restructuring of Chengdu Summit in a series of steps which will ultimately lead to PCRPL acquiring the Chengdu Longemont Mall Interest. Currently, Shanghai Summit holds Chengdu Summit which in turn holds the Underlying Land. Under the Framework Agreement, it is intended that the Underlying Land be transferred to Chengdu Ruifeng, which will be 50.0% owned by a special purpose company incorporated in Hong Kong (“Hong Kong SPV”), which will in turn be wholly-owned by Shanghai Summit. The Acquisition will be made by PCRT through the acquisition of the Hong Kong SPV from Shanghai Summit.

2.3.2 Conditions precedent

The completion of the Acquisition is subject to, among other things:

(a) the Acquisition being approved by Unitholders;

(b) satisfactory due diligence by PRCPL on the Hong Kong SPV;

(c) the completion of the transfer of the Hong Kong SPV to PCRT;

(d) the shares in Chengdu Ruifeng, the Underlying Land, the Chengdu Longemont Mall and the other assets of Chengdu Ruifeng being free of mortgage and any other encumbrance (save for any such encumbrance agreed by PCRPL in writing); and

(e) Chengdu Ruifeng obtaining the relevant developer’s license.

3 3. RATIONALE AND KEY BENEFITS OF THE ACQUISITION

3.1 Accretive Acquisition

Distribution Per Unit (“DPU”) Accretive: The Trustee-Manager will endeavour to ensure that the Acquisition is DPU-accretive, meaning that the yield on cost achieved for the Acquisition is higher than the yield on cost of PCRT’s existing portfolio.

Net Asset Value (“NAV”) Accretive: The Chengdu Longemont Mall’s 2011 and 2014 independent valuations by CB Richard Ellis (Pte) Ltd (“CBRE”), the independent valuer commissioned by the Trustee-Manager are RMB12,5004 per sqm of GFA as at 31 October 2011 and RMB14,9305 per sqm GFA in 2014, which is a premium of 25.0% and 49.3%, respectively over the agreed property price of RMB10,000 per sqm of GFA which forms the basis of the Purchase Consideration of approximately S$455.0 million. The Acquisition is expected to increase PCRT’s adjusted pro forma NAV per unit of S$0.996 to S$1.197 based on the estimated future values of all the properties of PCRT in 2014, when the Chengdu Longemont Mall commences operations.

3.2 Strategic Location with Direct Connectivity to Chengdu East High Speed Railway Station

The Chengdu Longemont Mall is strategically located in Chengdu city’s new CBD, directly connected to the Chengdu East HSR Station, which comprises inter-city railway, intra-city subway (expected to serve Lines 2 and 7), long and short distance bus routes and taxi

4 The valuation is on an “as if complete and fully leased” basis which provides the value of a proposed development project assuming it has already been completed, and utilises market information prevailing as at the date of valuation. The critical assumptions adopted are: (i) construction of the property had already been completed according to the development schemes and plans made available to the valuer, (ii) all necessary licences, permits or grants to act, to build, use and occupy have been obtained, with no future payments needed to ensure this position, (iii) the property is fully leased under leasing and occupational arrangement typical of the market as at the date of valuation, (iv) revenue and property outgoings are based on prevailing economic and market conditions and (v) net property income is capitalised for the balance lease term at the prevailing market-derived capitalisation rates. This valuation basis is to be distinguished from the “as is” or “existing condition” bases. 5 The estimated future value of the property in 2014 is for illustrative purposes only and is not a forecast, prediction or valuation, and is an extrapolation of the valuation of the property as at 31 October 2011 based on prevailing market and economic conditions as at the date of the valuation. The extrapolation is based on the current capitalisation rate, and is not to be misconstrued as a valuation into the future and takes into account the level of income and rental escalation which has historically been achieved within the retail sector in China. 6 The adjusted pro forma NAV per unit of S$0.99 excludes deferred tax and is based on the estimated future values of the Properties (as defined in the Prospectus) in 2014 and is based on all the assumptions and adjustments set out in the section “Unaudited Pro Forma Consolidated Balance Sheet as at the Listing Date – Pro Forma NAV per Unit for illustrative purposes”. 7 The adjusted pro forma NAV per unit of S$1.19 is computed by applying the estimated future value of the Chengdu Longemont Mall in 2014 of RMB14,930 per sqm of GFA to the adjusted pro forma NAV per unit of S$0.99 derived in the Prospectus and based on all the assumptions and adjustments set out therein, after incorporating the following key adjustments and assumptions, and excluding deferred tax: (i) the GFA of the Chengdu Longemont Mall for the purposes of computing the transaction consideration under the Framework Agreement is 455,260 sqm, (ii) the RMB amount in respect of the estimated future value and transaction consideration of the Chengdu Longemont Mall is translated into Singapore dollars based on the fixed exchange rate of RMB5.00 = S$1.00, (iii) the number of Units are assumed to remain as that used in deriving the adjusted pro forma NAV per unit of S$0.99 in the Prospectus and (iv) the NAV per unit increase is computed based on the increase in valuation of the estimated future value of the Chengdu Longemont Mall which is an extrapolation of the “as if complete and fully leased” valuation as at 31 October 2011 compared to transaction price.

4 connections, and supported by a large residential and office population catchment.

3.3 Favourable Payment Schedule Provides Funding Flexibility & Reduces Costs

Only payment of 15.0% of the Purchase Consideration is required to be made in the initial stage of the development in 2012. The payment for the remaining 85.0% of the Purchase Consideration will only need to be made in 2013 and 2014.

The largely back-ended payment structure reduces the amount which PCRT needs to finance upfront and consequently, reduces interest and other related expenses for the Acquisition in such period.

3.4 Increases PCRT’s Asset Size to S$1.7 billion and Generates Additional 2014 Income Stream

The Acquisition is expected to increase PCRT’s asset size from S$1.1 8 billion to S$1.7 billion 9 . PCRT is also expected to benefit from the additional income stream when the Chengdu Longemont Mall commences operations in the third quarter of 2014.

3.5 Strengthens Retail Presence in Chengdu City and Economies of Scale

The Acquisition would not only strengthen PCRT’s retail presence in Chengdu but also cater to different tenancy and shopper demands in the eastern and western parts of the city.

PCRT will own the Chengdu Qingyang Guanghua Shopping Mall located in Western Chengdu once completed. The Chengdu Longemont Mall located within the Third Ring Road of Eastern Chengdu is also expected to provide PCRT with economies of scale in overall resource planning and operations in Chengdu.

4. METHOD OF FINANCING THE ACQUISITION AND FINANCIAL EFFECTS OF THE ACQUISITION

It is intended that the Acquisition be wholly-funded by debt financing. The Trustee-Manager has received debt financing proposals from banks and is currently evaluating various options. In making its decision, the Trustee-Manager will take into account, among other things, the prevailing market conditions, interest rate environment, debt expiry profile and the covenants and conditions associated with each financing option, so that the Acquisition will be in the overall interest of PCRT and Unitholders.

The financing for the first two payments (initial payment of 15.0%, plus second payment of 40.0%, together totalling 55.0% of the Purchase Consideration), up to the stage of “topping- out” of the Chengdu Longemont Mall, is expected to be from the existing loan facility of PCRT10 and other forms of financing such a further new debt facility and through the debt capital markets. Financing for the payment of the remaining 45.0% of the Purchase Consideration, which will be due when the Chengdu Longemont Mall commences operations and receives its building title deed, is expected to be secured on the shares of the subsidiaries of PCRT which own directly or indirectly the Chengdu Longemont Mall Interest.

The details of the debt financing will be set out in the circular to Unitholders seeking approval for the Acquisition (“Circular”) and based on these details, the Circular will also set out the financial effects of the Acquisition, including its impact on the NAV per Unit and DPU.

8 Based on the initial property portfolio of PCRT which was valued by CBRE as at 31 December 2010. 9 Based on the initial property portfolio of PCRT which was valued by CBRE as at 31 December 2010 and the Chengdu Longemont Mall’s 2011 independent valuation by CBRE of RMB12,500 per sqm of GFA as at 31 October 2011. 10 Subject to consent of the financing banks.

5 5. INTEREST OF THE DIRECTORS AND SUBSTANTIAL UNITHOLDERS

Based on information available to the Trustee-Manager, the interests of the directors of the Trustee-Manager (the “Directors”) and substantial Unitholders in the Acquisition are as follows:

Name of Director %

Wong Tui San 0.005

Pok Soy Yoong 0.036

Kuok Khoon Hong (through HPRY Holdings Limited) 4.625

Pua Seck Guan (including deemed interests through 3.768 Perennial Real Estate Pte. Ltd. and Perennial China Retail

Trust Management Pte. Ltd.)

Name of Substantial Unitholder %

Shanghai Summit Pte Ltd 14.901

6. APPROVAL REQUIRED AT EXTRAORDINARY GENERAL MEETING

The Circular seeking approval for the Acquisition will be issued in due course.

6.1 Approval of Transaction

As the Purchase Consideration exceeds 88.0% of PCRT’s market capitalisation (as at 2 November 2011), Unitholders’ approval will be sought for the Acquisition.

6.2 Interested Person Transaction

As stated in the Prospectus, for purposes of good corporate governance, the Trustee- Manager shall from the listing date of PCRT voluntarily regard Mr Tong Jinquan as an “interested person” under the Listing Manual of the SGX-ST provided that Mr Tong Jinquan and his associates own 5.0% or more of the aggregate number of units in PCRT (“Units”) in issue. As Mr Tong Jinquan and his associates own 14.9% of the aggregate number of Units in issue, the entry into by PCRPL of the Framework Agreement will be regarded as an “interested person transaction” under Chapter 9 of the Listing Manual. As the size of the Acquisition exceeds 5.0% of the net tangible assets of PCRT, it is subject to the approval of Unitholders.

6.3 Existing Interested Person Transactions

Excluding transactions which are deemed to be specifically approved at the initial public offering of PCRT, the current total for the present financial year of all transactions with Mr Tong Jinquan and his associates is nil and the current total for the present financial year of all interested person transactions entered into by PCRT is S$1.9 million.

6.4 Audit and Risk Committee Statement

An independent financial adviser (“IFA”) will be appointed to provide an opinion on whether the Acquisition is on normal commercial terms and is not prejudicial to the interest of PCRT and the minority Unitholders. The Audit and Risk Committee of the Trustee-Manager will form its own view after reviewing the opinion of the IFA, which will be disclosed in the Circular.

6 7. OTHER INFORMATION

7.1 Directors’ Service Contracts

No person is proposed to be appointed as a Director in connection with the Acquisition or any other transactions contemplated in relation to the Acquisition.

7.2 Relative figures computed on the bases set out in Rule 1006

The relative figures computed on the following bases set out in Rules 1006(b) and 1006(c) of the Listing Manual (“Listing Manual”) of Singapore Exchange Securities Trading Limited (the “SGX-ST”) are as follows:

(a) the net profits attributable to the Acquisition, compared with PCRT’s net profits; and

(b) the aggregate value of the Purchase Consideration, compared with PCRT’s market capitalisation.

As the Acquisition involves a development asset, there is no net profit attributable to the Acquisition.

Based on the Purchase Consideration of RMB2.28 billion (or approximately S$455.0 million) and PCRT’s market capitalisation of S$516.0 million as at 2 November 2011, the relative figure for the basis of comparison set out in sub-paragraph (b) above is approximately 88.2%.

The relative figure of the number of Units issued by PCRT as consideration for the Acquisition compared with the number of Units previously in issue as set out in Rule 1006(d) of the Listing Manual does not apply in relation to the Acquisition as no Units will be issued as consideration for the Acquisition.

7.3 Documents on display

Copies of the following documents are available for inspection during normal business hours at the registered office of the Trustee-Manager at 6 Temasek Boulevard #25-04/05 Suntec Tower Four, Singapore 038986 from the date of this announcement up to and including the date falling three months after the date of this announcement:

(i) the Framework Agreement; and

(ii) valuation summary letter from CBRE dated 31 October 2011 in respect of the Chengdu Longemont Mall.

By Order of the Board Perennial China Retail Trust Management Pte. Ltd. (as Trustee-Manager of Perennial China Retail Trust) (Company Registration No. 201024622Z)

Wong Lai Kuen Company Secretary Singapore 4 November 2011

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Important Notice

The value of units (“Units”) in PCRT and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, PCRT, the Trustee-Manager, or any of its affiliates. The past performance of PCRT is not indicative of the future performance of PCRT. Certain statements in this announcement may constitute “forward-looking statements”. Such forward-looking statements are based on numerous assumptions regarding PCRT’s present and future business, and its strategies and the environment in which PCRT’s will operate in the future. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of PCRT, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements speak only as at the date of this announcement. PCRT expressly disclaims any obligation or undertaking to release publicly any updates of or revisions to any forward- looking statement contained herein to reflect any change in PCRT’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, subject to compliance with all applicable laws and regulations and/or the rules of the SGX-ST and/or any other relevant regulatory or supervisory body or agency.

An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. Investors will have no right to request that the Trustee-Manager redeem or purchase the Units while the Units are listed. It is intended that holders of the Units may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. The past performance of PCRT is not necessarily indicative of the future performance of PCRT.

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