Singapore, 15 September 2003 - The CapitaLand Group has entered into an agreement to acquire a 101,400 square metre residential site in Chaoyang District, Beijing, from the Beijing North Star Group, which is listed on the Hong Kong stock exchange. The acquisition cost of the site is RMB545.1 million (about S$116 million). The site will be purchased through CapitaLand (China) Investment Co., Ltd and CapitaLand China Residential Fund (a CapitaLand-sponsored private fund), which will hold interests of 80% and 20% respectively.

The site will be developed into a quality condominium project over the next three to five years. With a potential gross floor area of about 272,000 square metres, CapitaLand China Holdings plans to build approximately 2,000 residential units on the site.

Mr Liew Mun Leong, President and CEO of CapitaLand Limited, said, "The CapitaLand Group has steadily increased its presence in China. With this acquisition, we will further tap into the vast market potential of Beijing, which is a key economic centre of China. This acquisition is part of our broader strategy of expanding overseas. The CapitaLand Group has been enjoying better earnings from its overseas operations, particularly in Australia and China. We will continue to source for more overseas opportunities with the strategic intent of increasing our overseas revenue and profit."

Mr Lim Ming Yan, CEO of CapitaLand China Holdings, said, "The Beijing market has been stable for the last few years. With high economic growth and continued improvements in infrastructure partly in view of the forthcoming 2008 Olympic Games, we are optimistic that the Beijing residential property market will do well. This site is conveniently located next to the Olympic Park, and is served by good public transport links. The location is also expected to benefit further from MRT Line 5 and other infrastructure projects linked to the 2008 Olympics. Our team has started work towards putting up a quality condominium development to cater to the middle-income homebuyers in Beijing."

The acquisition is subject to approval by the relevant government authorities. The site has the standard land tenure of 70 years and will be handed over to the CapitaLand Group by end 2003. The site is bounded by North Fifth Ring Road to the south, Wa Li Road to the north, while An Li Road to the west faces the luscious greenery provided by the 1,135 hectares Olympic Park. The area where the site is located will be linked to the central part of Beijing via MRT Line 5, which is expected to be operational by 2005.

The acquisition is not expected to have a material impact on the net tangible assets or earnings per share of the CapitaLand Group for the financial year ending 31 December 2003. None of the directors or controlling shareholders of CapitaLand Limited has any interest, direct or indirect, in the above transaction.

CapitaLand Limited is one of the largest listed property companies in Asia. Headquartered in Singapore, the multi-national company has property, hospitality and property-related products and services spanning more than 50 cities around the world. Its diversified business interests cover commercial and industrial buildings, residential, serviced residences, hotels, property funds, real estate financials and property services. The company leverages on its significant asset base and its market knowledge to develop fee-based businesses.

About CapitaLand China Holdings

CapitaLand China Holdings is a developer of premier homes and quality commercial properties in a number of Chinese cities including Shanghai, Beijing, Xiamen and Wuhan. CapitaLand China's investments in both the residential as well as commercial segments of the real estate market amount to approximately US$600 million.

About CapitaLand China Residential Fund

The CapitaLand China Residential Fund is a private fund sponsored by CapitaLand with support from institutional investors. The Fund will invest in the mid to high-mid residential market in Shanghai and Beijing. It will leverage on CapitaLand's core residential development delivery capability in China, and skill sets in real estate capital management. The current investments are a 15% stake in CapitaLand China Holdings' 2,000-unit Oasis Riviera residential project in Changning District, Shanghai, and with the above-mentioned transaction, a 20% interest in the 101,400 square metre site in Chaoyang District, Beijing.