THIS ANNOUNCEMENT IS NOT AN OFFER FOR SALE OF SECURITIES REFERRED TO IN THIS ANNOUNCEMENT IN THE UNITED STATES. THE SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"). THE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE SECURITIES ACT. NO PUBLIC OFFERING OF THE SECURITIES IS BEING, OR WILL BE MADE IN THE UNITED STATES.

Press Release

K‐REIT Asia to acquire 87.5% interest in Ocean Financial Centre through Ocean Properties Pte. Limited

DPU‐accretive acquisition of Ocean Financial Centre enhances K‐REIT Asia’s portfolio with one of the largest and newest premium office buildings in the and Marina Bay precincts

Singapore, 17 October 2011 – the trustee of K‐REIT Asia has entered into a conditional sale and purchase agreement with, among others, Straits Property Investments Pte Ltd (the “Vendor”), a wholly‐ owned subsidiary of Keppel Land Limited, for the acquisition of an approximate 87.5% interest in Ocean Properties Pte Limited (“Ocean Properties”) for a period of 99 years (the “Acquisition”).

Ocean Properties owns Ocean Financial Centre, a landmark Grade A 43‐storey premium office tower which is one of the largest and newest office developments with environmentally sustainable features located in ’s central business district (“CBD”), comprising approximately 884,957 square feet or 82,215 square metres of net lettable area (“NLA”).

As of 15 September 2011, about 79.6% of the total office NLA had been leased to established corporations such as the Australia and New Zealand Banking Group, BNP Paribas, Drew & Napier LLC, Stamford Law Corporation, The Executive Centre and Verizon Communications.

The agreed value for the Acquisition, which was negotiated on a willing‐buyer and willing‐seller basis, is $2,013.1 million. This includes a five‐year rental support of up to $170.0 million. Savills Valuation and Professional Services (S) Pte Ltd and Knight Frank Pte Ltd have independently valued the Acquisition as at 15 September 2011 at $2,054.0 million and $2,050.0 million respectively.

K-REIT Asia Management Limited 230 Victoria Street #15-03 Bugis Junction Towers Singapore 188024 Tel: (65) 6835 7477 Fax: (65) 6835 7747 www.kreitasia.com 1 Company Regn No: 200411357K

K‐REIT Asia Management Limited, the manager of K‐REIT Asia (the "Manager"), plans to fund the Acquisition with the proceeds from a proposed 17‐for‐20 underwritten renounceable rights issue and bank borrowings. Post‐Acquisition, K‐REIT Asia is expected to have an aggregate leverage level of 41.6%. Controlling unitholders of K‐REIT Asia, Keppel Corporation Limited and Keppel Land Limited, have provided irrevocable undertakings to subscribe for their pro‐rata entitlements in K‐REIT Asia’s rights issue.

Ms Ng Hsueh Ling, CEO of the Manager, said, “We remain confident of Singapore’s fundamentals as one of Asia’s key financial centres as well as the positive outlook for the Singapore office market in the short to medium term especially for Grade A office space. The acquisition of Ocean Financial Centre, one of the best premium commercial buildings in Singapore’s business and financial district will enhance our portfolio significantly as well as improve our distribution per unit to our unitholders.”

“Following the Acquisition, K‐REIT Asia will have four of its five Singapore assets located strategically within the Raffles Place and Marina Bay precincts, and become the largest owner of key premium offices located in the heart of Singapore’s CBD.”

The Acquisition is expected to benefit Unitholders of K‐REIT Asia ("Unitholders") as it:

 is expected to be accretive to K‐REIT Asia’s distribution per unit from the cash flows it generates;

 will enhance the quality of and strengthen the branding of K‐REIT Asia’s property portfolio in the prime Raffles Place and Marina Bay precincts;

 will increase K‐REIT Asia’s exposure to the Singapore office market by asset size from approximately 89.5% to approximately 93.1%;

 will reduce the average age of K‐REIT Asia’s property portfolio by NLA from approximately 6 years to approximately 4 years;

 will improve K‐REIT Asia’s lease expiry profile such that no more than 11% of K‐REIT Asia’s portfolio by NLA will expire in any one year over the next five years; and

 will enhance and strengthen K‐REIT Asia’s tenant base with established organisations which include financial institutions and multinational corporations.

As the Acquisition constitutes both an interested party transaction under the Property Funds Appendix of the Code on Collective Investment Schemes and an interested person transaction under the Listing Manual, it will be subject to the approval of the Unitholders at an extraordinary general meeting which is expected to be held on 10 November 2011.

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About K‐REIT Asia (http://www.kreitasia.com)

Sponsored by Keppel Land Limited, one of the largest listed property companies in Singapore, K‐REIT Asia was listed on the Singapore Exchange on 28 April 2006 following a distribution in specie of units in K‐REIT Asia to its shareholders.

K‐REIT Asia aims to generate steady and sustainable returns for its Unitholders by investing in quality income‐producing commercial properties and real estate‐related assets in Singapore and key cities pan‐ Asia.

As at 1 October 2011, K‐REIT Asia has an asset size of approximately $3.9 billion, comprising seven quality commercial properties. In Singapore, K‐REIT Asia owns Bugis Junction Towers, a one‐third interest in Marina Bay Financial Centre Towers 1 & 2 and Marina Bay Link Mall, a one‐third interest in and 92.8% of the strata area in Prudential Tower.

In Australia, K‐REIT Asia owns a 50% interest in 275 George Street in Brisbane, and the office tower at 77 King Street and a 50% interest in 8 Chifley Square, both in Sydney.

K‐REIT Asia is managed by K‐REIT Asia Management Limited, a wholly‐owned subsidiary of Keppel Land Limited.

For more information, please contact:

Media Relations Investor Relations Ms Grace Chia Ms Casiopia Low Senior Manager Manager Group Corporate Communications Investor Relations & Research Keppel Corporation K‐REIT Asia Tel: (65) 6413‐6434 / (65) 9694‐1328 Tel : (65) 6433‐7622 Email: [email protected] Email: [email protected]

This press release is also available on www.kreitasia.com, www.keppelland.com.sg and www.kepcorp.com.

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