Salient DetailsCapitaLand Limited officially launched its China office today. This is concrete testimony of CapitaLand's confidence in the China property market and serves as a base for further investments in the country.The launch event, officiated by Mr Hsuan Owyang, Deputy Chairman of CapitaLand Limited, was witnessed by more than 200 guests including customers, business partners and key government officials. Since 1994, the CapitaLand Group has been active in the China property scene, with investments amounting to more than RMB 5 billion (S$1 billion). CapitaLand Chinas focus has been on the development of comfortable homes and quality commercial properties. Today, it has invested in more than 20 projects in Mainland China, providing more than 6,000 homes, over 300,000 square metres of office and retail space, and about 1,500 serviced apartments. CapitaLands business activities in Mainland China are mostly located in Shanghai, which accounts for more than 70 per cent of its total investments in the country. They range from residential, commercial to hotel and serviced apartments sectors. Perspectives of Senior ManagementOn CapitaLand Group direction:"China, especially Shanghai, is a key market for CapitaLand and we are fully committed to a long-term investment horizon in the country. We have already committed about RMB 5 billion of investments to-date and we look forward to mutually beneficial relationships with local developers through shared experiences as we expand our size and range of investments."-- Mr Liew Mun Leong, President & CEO, CapitaLand LimitedOn Shanghai residential market:"Shanghai is one of the fastest growing residential markets in China with the largest volume of transactions recorded last year compared to other cities. High economic growth and pro-home ownership policies have contributed to this growth. Manhattan Heights, our luxury residential project in Shanghais downtown and Summit Panorama have received good response."-- Mr Lim Ming Yan, Chief Executive Officer, CapitaLand China On Shanghai commercial market:"Chinas high economic growth and imminent entry into the WTO has led to a rise in Grade A office rental rates and capital values. On the retail front, Shanghais intention to be an international shopping hub and the growing purchasing power of the people will attract retailers and investors to the city. With these new opportunities in the commercial market, we are confident that now is the right time to speed up the development of Raffles Square and position it as a commercial centre of the future."--- Mr Lim Ming Yan, Chief Executive Officer, CapitaLand China About the CapitaLand China operationsResidential CapitaLand China will strive to bring its customers even better homes and living environments. To cater to demands by Shanghais new generation for a better quality of life, it has developed quality residences including Springdale Garden, Parkville and the 1,109-unit Chrysanthemum Park Phase I which was recently sold out. Plans to launch Chrysanthemum Park Phase 2 (Summit Panorama) are underway. Recently, the company also launched the 245-unit luxury residential project Manhattan Heights. Located in the heart of Shanghais downtown, the condominium is targeted at business executives and expatriates working in the nearby business districts and designed along modern lines. Response to the project has been very encouraging, and about 30 percent of its phase one launch of 100 units have been sold. CapitaLand China and Reco Mega, a subsidiary of Singapore GIC Real Estate, have also acquired a prime 28,000 square metre residential site in Shanghais Xuhui District. A good class condominium with about 850 apartments and a full range of facilities will be built on the site. CommercialCapitaLand China has various quality developments in its commercial property portfolio. In Shanghai, these include Raffles Square at Fuzhou Road adjacent to the MRT interchange station and Pidemco Tower near the Bund. Raffles Square is CapitaLand China's prime commercial investment in Puxi, and Singapore's largest single commercial property investment in Shanghai to-date. CapitaLand China will quicken the pace of development for Raffles Square which was slowed down earlier due to the Asian economic crisis. The commercial market is on the uptrend due to China's imminent entry into the WTO and the large influx of Chinese companies and MNCs into Shanghai. Rents and capital values are moving up especially for prime locations in Puxi where the vacancy rate is 7.2% compared with an overall vacancy rate of 20% in Shanghai. Raffles Square is located adjacent to the transportation hub of Puxi, near the Shanghai Municipal Hall and People's Square. When completed in end 2003, the landmark Raffles Square will consist of a 46-storey office building and a 7-storey retail annex totaling 125,000 square meters of gross floor area.Pidemco Tower is conveniently located near the Bund, which is also known as "Eastern Wall Street". The 24-storey office building of 41,000 square metres gross floor area enjoys a prominent location within the Shanghai commercial district, is home to CapitaLand China as well as Motorola, Emerson Electric and Agfa. Future directionCapitaLand China will continue to seek business opportunities in both Shanghai and Beijing. In the residential sector, the company will focus on mid- to high-end segments of the market and seek to be the leader in this market segment. With the quickening of the pace of development for Raffles Square, CapitaLand China will aim to develop it as one of the best commercial properties in Shanghai. In parallel, it will continue to seek development and investment opportunities in good investment grade properties and world-class commercial estate, contributing our part in the transformation of Shanghai into a global city. Operationally, it will strive to bring state-of-the-art living concepts to its customers in China and to create quality living and working environments. About CapitaLand LimitedIn November 2000, regional property leaders Pidemco Land and DBS Land united to form CapitaLand, creating the largest listed property developer in Southeast Asia. With assets exceeding RMB 90 billion (S$19 billion), CapitaLand enjoys an extensive global reach, select strategic alliances and significant operational synergies. The company is headquartered in Singapore, with an overseas presence in more than 50 cities in United States, Asia, Europe and Australia. Yet the companys core remains its people the outstanding management, the technical talent, and the proven leadership. CapitaLand believes in developing the best people to deliver the best products and services to its customers. For details, please contact: Department of Corporate CommunicationsCapitaLand China Holdings GroupMr. Richard Zhou/Ms Chen QiTel: 86-21 6391 2766Fax: 86-21 63912716