Singapore, 9 Feb 2001 - CapitaLand Commercial ("CCL") is pleased to announce that it has sold three non-core properties - Thomson Plaza, 11 Beach Road and 79 Anson Road - as part of its divestment plan to realise value for shareholders.

Ed Ng, CapitaLand Commercial's CEO, said, "This move is in line with our strategy to divest fringe assets, and use the sales proceeds to reduce debt and fund other investments.

"The three divestments will generate $113.1 million in cash proceeds and a pre-tax gain of $40.7 million," he added.

Earlier today CCL completed the sale of its 50% share in a strata unit (total space 67,533 sq ft) on the 3rd level of Thomson Plaza owned by its associated company Thomson Plaza Investments Pte Ltd. The sale of our share of the strata unit to supermarket chain retailer NTUC Fairprice will provide CCL with cash proceeds of $14.4 million. Following the divestment, Thomson Plaza Investments Pte Ltd ceased to be an associated company of CCL.

A sales and purchase agreement was also signed on 19 January 2001 for the sale of our shares in Fusion Investments Pte Ltd which owns an office building at 11 Beach Road. This provided CCL with cash proceeds of $31.3 million ($4.6 million in net asset value and $26.7 million of shareholder's loans). The sale is expected to be completed on 28 Feb 2001. Upon completion, Fusion Investments Pte Ltd will cease to be a subsidiary of CCL.

On 31 Jan 2001, Phoenix Tower Ltd (a company owned equally by CCL and Natsteel Properties Pte Ltd) sold its 55% stake in a 23-storey strata-titled building at 79 Anson Road to a property fund. In total, 114,088 sq ft of strata space were sold for $135 million ($1,183 psf). CCL has received its share of the cash proceeds of $67.5 million from the sale.

CapitaLand Commercial is the largest office and retail space owner in Singapore. It also has an international presence in key gateway cities in Shanghai, Hong Kong, Tokyo, London and Kuala Lumpur. It is the commercial business unit of SGX-listed property group CapitaLand Limited.