CapitaLand has acquired a residential site in Baoshan District, Shanghai for a total consideration of RMB126 million (S$26.3 million). The 39,836 square metre site has a potential gross floor area of 84,680 square metres. CapitaLand plans to build approximately 700 homes on the site.

The transaction was made through the acquisition of 93% of Shanghai Xinshu Real Estate Development Company Limited (“Shanghai Xinshu”), which owns 100% interest in the site, by CapitaLand subsidiary CapitaLand China Investment Co. (“CCIC”). CCIC will pay a consideration of RMB10 million (S$2.1 million) which is the par value of Shanghai Xinshu, and assume the company’s liabilities of RMB116 million (S$24.2 million). CCIC also has an option to acquire the balance 7% of Shanghai Xinshu at par value. This acquisition price pegs the current value of the land at RMB126 million.

Mr Liew Mun Leong, President & CEO of CapitaLand Group, said, “Shanghai is an important gateway city for CapitaLand. The above acquisition will add another 700 units to our current pipeline of approximately 2,000 homes in Shanghai that are slated for launch or presently under development. We welcome the measures introduced by the Chinese government to manage not only its long term economic growth, but also to promote a stable real estate market. With our presence in Beijing, Guangzhou and in Shanghai, China will continue to be a growth driver for the CapitaLand Group.”

CapitaLand recently released 364 new units at its Oasis Riviera residential development in Shanghai, at an average selling price of more than RMB11,000 per square metre. Buyer response was good and 344 of these units have been sold. This brings the total number of units released at Oasis Riviera to 962 units, of which 96% have now been sold.

In a recent competition organised by Shanghai Morning Post and Shanghai Evening Post, Oasis Riviera was conferred a Gold Award for “Most popular residential development in Shanghai 2004” for developments priced at above RMB9,000 per square metre.

Mr Lim Ming Yan, CEO of CapitaLand China, said, “The site is strategically located in a new urban development area. The new towns have become popular especially amongst the middle-income homebuyers, with monthly household incomes ranging from RMB8,000 to RMB10,000. We plan to have the development in Baoshan ready for launch in 2005.”

The site is in Shanghai’s Yanghang town, Baoshan District. It is within walking distance to a MRT station and the People’s Square is less than half an hour by train. The town is well supported by an efficient transportation network and the MRT station is expected to be operational by end 2005 when the extension of Metro Line R1 will be completed.

The above consideration will be satisfied in cash. The 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 GroupCapitaLand 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 key cities in Asia, Australia, Europe and the Americas. The company's property and hospitality portfolio spans more than 70 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. The listed subsidiaries and associates of CapitaLand include Raffles Holdings, The Ascott Group, CapitaMall Trust, CapitaCommercial Trust and Australand Property Group, which is listed both in Singapore and Australia.

About CapitaLand ChinaCapitaLand China is an indirect wholly owned subsidiary of CapitaLand. Since 1994, the company has been a developer of premier homes and quality commercial properties in China, with a total project value of over RMB 16 billion. CapitaLand China has operations in the major Chinese cities, including Beijing, Guangzhou and Shanghai.

Issued by: CapitaLand Limited Date: 24 September 2004For more information, please contact:Media Contact Julie OngCommunicationsDID : (65) 68233541julie.ong@capitaland.com.sg Analyst ContactHarold WooInvestor RelationsDID : (65) 68233210harold.woo@capitaland.com.sg