Capitaland and Keppel Land Jointly Sign Agreements for Participation in an Increased Interest in Bugis Junction

For Immediate Release 13 May 2005

JOINT NEWS RELEASE

CapitaLand and Keppel Land jointly sign agreements for participation in an increased interest in Bugis Junction

Singapore, 13 May 2005 – CapitaLand Limited (CapitaLand) and Keppel Land Limited (Keppel Land) have, through participation agreements, jointly acquired, inter alia, a combined 39 percent economic interest in the share capital of Bugis City Holdings Pte Ltd (BCH) held by Oversea-Chinese Banking Corporation Limited (OCBC) and The Great Eastern Life Assurance Company Limited (GE) for S$157.0 million in cash. The BCH group of companies owns Bugis Junction, a mixed development comprising retail, office and hotel components.

The transaction was made through CapitaLand Retail (BJ1) Holdings Pte. Ltd. (an indirectly wholly-owned subsidiary of CapitaLand) and Rochor Investment Ltd (an equal joint venture between Keppel Land and Asia No. 1 Property Fund Limited, a private real estate fund managed jointly by Henderson Global Investors (Singapore) Limited and Alpha Investment Partners Limited), which entered into a participation agreement with each of OCBC and GE to acquire their respective rights, title and interest as lenders under a facility agreement made between the borrower, OCBC and GE (together as lenders), and OCBC (as agent for the lenders) and the credit documents executed in connection therewith. Following the participation, CapitaLand Retail (BJ1) Holdings Pte. Ltd. and Rochor Investment Ltd will jointly acquire an economic interest of 39 percent in the issued and paid-up share capital of BCH, with each of the aforesaid parties taking an economic interest of 19.5 percent in BCH.

BCH owns 80 percent, 75 percent and 90 percent stake in BCH Retail Investment Pte Ltd (BCH Retail), BCH Office Investment Pte Ltd (BCH Office) and BCH Hotel Investment Pte Ltd (BCH Hotel) respectively. BCH Retail, BCH Office and BCH Hotel own the retail, office and hotel assets respectively of the BCH group of companies.

CapitaLand currently holds a 30 percent stake in BCH through its indirect wholly-owned subsidiaries Victoria City Pte Ltd and Seiyo Investment (S) Pte Ltd, and a direct stake of 20 percent in BCH Retail and 25 percent in BCH Office through Seiyo Investment (S) Pte Ltd. With the participation, CapitaLand’s interest (including the aforesaid economic interests) in BCH will increase to 49.5 percent, and the interests (including the aforesaid economic interests) in BCH Retail, BCH Office and BCH Hotel will be increased to 59.6 percent, 62.1 percent and 44.6 percent respectively.

Keppel Land currently holds a direct 31 percent equity interest in BCH. With the participation, Keppel Land’s interest (including the aforesaid economic interests) in BCH will increase to 41.7 percent, while Asia No. 1 Property Fund Limited will have an effective interest of 9.75 percent in BCH.

Mr Kee Teck Koon, Vice Chairman of CapitaLand Commercial and Integrated Development Limited and CapitaLand Retail Limited, said, “The acquisition marks an important step in CapitaLand’s strategy to enhance asset productivity. Together with our partners, we will actively explore opportunities to boost value creation at the property level and for the eventual monetisation of the asset via a sale into a listed real estate investment trust or private property fund.”

Mr Tan Swee Yiow, Director, Singapore, Keppel Land, said, “With this joint participation, the shareholders are in a closer position to achieving the goal of unlocking value in Bugis Junction.”

About CapitaLand Group CapitaLand is one of the largest listed property companies in Asia. Headquartered in Singapore, the multinational company's core businesses in property, hospitality and real estate financial services are focused in gateway cities in Asia, Australia and Europe. The company's property and hospitality portfolio spans more than 80 cities in 28 countries. CapitaLand also leverages on its significant real estate asset base and market knowledge to develop fee-based products and services in Singapore and the region.

CapitaLand is currently Singapore’s leading mall manager with 10 malls under management in the suburban and central areas. This includes the five malls owned by Singapore’s first real estate investment trust, CapitaMall Trust (CMT), and the three owned by CapitaRetail Singapore (CRS) malls – Lot One Shoppers’ Mall, Bukit Panjang Plaza and Rivervale Mall -- under a securitisation structure. The malls owned by CMT are Plaza Singapura, Tampines Mall, 2

Junction 8, Funan The IT Mall and IMM. Overseas, CapitaLand Retail owns / manages six retail properties in Japan, China and Malaysia. CapitaLand Group recently secured a pipeline of 28 retail malls in China anchored by Wal-Mart and Beijing Hualian through co-operative agreements with Shenzhen International Trust & Investment Co., Ltd (SZITIC) and Beijing Hualian Group. By end 2005/early 2006, eight retail malls worth S$730 million will be operational, making them ideal assets for a China retail property fund with listing potential.

About Keppel Land Keppel Land is one of the largest listed property companies by total assets on the Singapore Exchange. Its quality portfolio of premier residential properties, integrated resorts and investment-grade offices are geographically diversified in Asia including Singapore, China, Thailand, Vietnam, India, Indonesia, Hongkong, Japan, South Korea, Malaysia, Philippines, Australia and Myanmar.

Keppel Land is managing the development of One Raffles Quay, an office development of 1.6 million square feet at Singapore’s new downtown at Marina South. This is a joint development with Cheung Kong (Holdings) and Hongkong Land. When completed in 2006, One Raffles Quay will be one of the largest office developments in Asia. ______Jointly Issued by : CapitaLand Limited (Regn. No.: 198900036N) & Keppel Land Limited (Regn. No.: 189000001G)

Date : 13 May 2005

CapitaLand Keppel Land Media Contact Media Contact Julie Ong Teri Liew Communications Group Corporate Communications DID : (65) 68233541 / Mobile : (65) 97340122 Keppel Corporation Limited Email : julie.ong@capitaland.com.sg Mobile : (65) 96864038 Email : [email protected]

Analyst Contact Analyst Contact Harold Woo Serena Toh Investor Relations Investor Relations and Research DID : (65) 68233210 Keppel Land Limited Email : [email protected] DID : (65) 64337546 Email : [email protected]