Singapore, 1 March 2005 – CapitaLand has completed an agreement to acquire a 90% equity stake in Ghim Li Property Pte Ltd by subscribing for 900,000 ordinary shares at S$1 each in the company, for cash at par. With the completion of this agreement, Ghim Li Property is now a 90% owned indirect subsidiary of CapitaLand. The remaining 10% stake will be held by Ghim Li Holdings Co. Pte Ltd, a garment and textile company.

Ghim Li Property is a single asset company that owns a 6,519 square metre site located in Tanjong Rhu. CapitaLand’s cost of acquisition at S$46.7 million is based on the net tangible asset of Ghim Li Property (which is the underlying site valued at S$51.9 million) and CapitaLand’s proportionate shareholding. The site was converted from industrial to residential use with a plot ratio of 2.8, and the lease was upgraded to a fresh tenure of 99 years. CapitaLand plans to build a riverfront condominium on the site.

Mr Liew Mun Leong, President & CEO of CapitaLand Group, said: "The acquisition of this site will add to our pipeline of leasehold developments. We recently launched two leasehold projects, namely Varsity Park Condominium and Citylights. This new site is not only well-located in the popular Tanjong Rhu residential estate, but also well-served by nearby MRT connections and recreational facilities. We will transform it into a beautiful riverfront condominium."

Ms Patricia Chia, CEO of CapitaLand Residential Singapore, said: "We will build about 150 homes on the site, with a good mix of two- to four-bedroom apartment types. The

majority of these units will have scenic views of the Kallang Basin. Residents will also enjoy a range of recreational facilities which will be located both at the sky terrace deck, as well as at the beautifully landscaped grounds. The condominium is tailored for homebuyers who appreciate living in the East Coast area. Conveniently located, it is a short walk from the proposed Circle Line MRT station at Stadium Boulevard/Old Airport Road, and a five-minute drive to the Central Business District. The development is slated for launch this year."

Located at Kampong Kayu Road in Tanjong Rhu, the site is in a predominantly residential neighbourhood. Residents will enjoy the recreational facilities, water-sports and amenities in the East Coast area. Nearby schools include Dunman High School and Chung Cheng High School.

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 property and hospitality portfolio spans 88 cities in 29 countries. 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.

Kindly visit www.capitaland.com for more details.

Issued by: CapitaLand Limited (Co. Regn: 198900036N)