Singapore, 17 June 2004 - CapitaLand has acquired a 125,716 square metre residential site in Chaoyang District, Beijing. The site has a potential gross floor area of 65,500 square metres and CapitaLand plans to build approximately 230 landed homes on it. The transaction was made through the acquisition of Rich Fook Development Limited ("Rich Fook"), a Hong Kong-incorporated company, for a consideration of RMB129.1 million (S$27.5 million). Rich Fook in turn wholly owns a company, Beijing Orchid Garden Property Development Co., Ltd ("BOG"), whose sole asset is the Chaoyang site. The above consideration, which will be satisfied in cash, is based on the net book value of Rich Fook, taking into account the current value of RMB281.3 million (S$59.9 million) for the underlying residential site. The consideration was arrived at on a willing buyer-willing seller basis.CapitaLand has been achieving strong sales for its China homes, with all of its launched units fully or almost fully sold. Of the about 600 units in the La Cit residential development that have been released, 95% are sold. This includes the sale of 50% of the 80 new units launched two weeks ago. Another recently launched project, Oasis Riviera, has also achieved sales of 99% for the 580 units released. High buyer interest has been registered for subsequent phases and new units are slated for launch soon.The BOG site was acquired through Hua De Holdings Pte Ltd (an indirect wholly owned subsidiary of CapitaLand) and CapitaLand China Residential Fund (a private fund in which CapitaLand has a 33.6% indirect interest). Hua De and the Fund will hold interests of 70% and 30% respectively. With the acquisition, Rich Fook and BOG have become indirect 80.08% owned subsidiaries of CapitaLand.Mr Liew Mun Leong, President & CEO of CapitaLand said: "This year, our 10th year in China, CapitaLand continues to strengthen its presence in the country. Besides the acquisition of residential sites in Shanghai and Beijing, including this Beijing Orchid Garden site, we have increased our presence in the commercial sector and real estate financial services, through Raffles City Shanghai and the CapitaLand China Residential Fund respectively. We will continue to expand into key gateway cities in China."Mr Lim Ming Yan, CEO of CapitaLand China, added: "The Chinese economy continues to grow at a strong and steady pace. Recent policies by the Chinese government will serve to promote the development of a healthy property market. In Beijing, the residential market has been stable over the past few years. Today, we see strong local demand, underpinned by strong economic growth, rising affordability, and a growing population due to Beijing's attractive position as China's capital and key economic centre. There is buyer interest particularly for new and good quality projects in the mid to high-mid segment of the market. The newly acquired site will be developed for this group of homebuyers, and we intend to launch it in the first half of 2005. CapitaLand has seen good sales of its properties and we are confident of sustainable growth in the market segment that we are in."The site is located at Lai Guang Ying Dong Lu, about one kilometre west of the Beijing Airport Expressway, in the established Chaoyang residential neighbourhood. This neighbourhood is popular amongst both the local and expatriate homebuyers with well-known schools in the vicinity, including the Western Academy of Beijing International School and Montessori School. CapitaLand plans to build a mix of apartments, terraces, semi-detached and detached houses over the next three years. The site has a standard tenure of 70 years.The above transaction is not expected to have any material impact on the net tangible assets or earnings per share of the CapitaLand group for the financial year ending 31 December 2004. None of the Directors or controlling shareholders of CapitaLand has any interest, direct or indirect, in the transaction described above.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, property services and real estate financial services are focused in gateway cities in Asia, Australia and Europe. The company's hospitality businesses, in hotels and serviced residences, span more than 60 cities around the world. 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.About CapitaLand China

CapitaLand (China) Investment Co., Ltd is a wholly owned subsidiary of CapitaLand China, which is in turn an indirect wholly owned subsidiary of CapitaLand. Since 1994, CapitaLand China has been a developer of premier homes and quality commercial properties in China, with a total project value of over RMB 12 billion. CapitaLand was proud to be accorded the coveted "Wholly Foreign-Owned Enterprise" investment company status, by the Chinese government in 2002.About CapitaLand China Residential Fund

The CapitaLand China Residential Fund is a private fund sponsored by CapitaLand with support from corporate investors, financial institutions and high net worth individuals. The Fund's current investments are a 20% interest in the 1,700-unit La Fort in Beijing; a 14.55% stake in the 2,000-unit Oasis Riviera in Shanghai; and a 20% interest in Shanghai Aoshun Property Co, which owns a 153,140 square metre residential site in Shanghai.