CapitaLand Related Entities Take Full Ownership of 22 China Retail Malls

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1 For Immediate Release 29 September 2009 NEWS RELEASE CapitaLand Related Entities Take Full Ownership of 22 China Retail Malls Asset swap arrangement with SZITIC Commercial Property Co., Ltd Singapore, 29 September 2009 CapitaLand Limited s ( CapitaLand ) sponsored funds, CapitaRetail China Development Fund and CapitaRetail China Development Fund II (the Development Funds ), have entered into an asset swap arrangement with SZITIC Commercial Property Co., Ltd ( SCP ). Since December 2004, CapitaLand and the Development Funds have jointly invested in 33 Wal-Mart anchored retail projects with SCP. The asset swap arrangement covers all 33 retail projects. In the asset swap arrangement, the Development Funds will swap their 65% equity stake in four projects and 50% interest in Xiangmihu Mall, Shenzhen for SCP s 35% equity stake in 16 retail projects and SCP s 49% stake in six projects. Separately, the Development Funds and SCP will together divest their respective 65% and 35% equity stakes in six land parcels for which no substantial development work has commenced. [Please see Annex A for details of the asset swap arrangement.] Full Ownership of 22 Retail Malls Following the asset swap, CapitaLand, together with the Development Funds and CapitaRetail China Trust ( CRCT ), will have full ownership interest and management control of 22 Wal-Mart anchored malls. This will ensure a better integration of CapitaLand s retail operations and investments in China. After the asset swap arrangement, CapitaLand s retail portfolio in China will comprise 46 malls (30 of which are already operational) across 32 cities at a total asset value of RMB28.9 billion (approximately S$6.2 billion). [Please see Annex A for CapitaLand s retail footprint in China after the asset swap.] No additional investment outlay is required for the above transactions. As part of the asset swap, both companies joint venture in a property management company, CapitaLand SZITIC (Shenzhen) Property Management Co., Ltd., will also dissolve. Mr Lim Beng Chee, Chief Executive Officer of CapitaLand Retail Limited, said, We have grown significantly from only seven retail malls to the present 46 malls with over 2,000 management staff. Outside of this partnership with SCP, we have acquired and developed another 24 malls which make up approximately 80% of our total retail portfolio value in China. Given the long-term

2 growth potential of China s retail sector, we will continue to stay fully committed to our business in the country. As one of the largest retail real estate owners, developers and mall managers, we have shaped the retail scene in the various cities where we operate. Mr Lim added, The 33 Wal-Mart anchored malls we had jointly invested with SCP constituted approximately 20% of our total retail portfolio value in China. In light of the changes in the strategic directions of SCP and CapitaLand, we have decided that it is in our mutual interests to carry out the asset swap and dissolve the partnership. Mr Liew Mun Leong, President and Chief Executive Officer of CapitaLand Group, said, Our full control of the 22 Wal-Mart anchored retail malls will allow for a better integration of our retail operations and investments in China, and will further propel our growth in the country. We stand to benefit from China s rapid economic development, urbanisation as well as the relatively low level of organised retail space which stands at approximately 20%. India likewise offers a rapid consumer and retail growth potential for us. Even for more mature markets, such as Singapore, Malaysia and Japan, the retail space per capita is low compared to Western countries. Hence, as Asia s largest retail real estate owner, developer, operator and manager by total asset value and geographical reach with a portfolio of over 80 malls, CapitaLand is well positioned to gain from the increasing retail demand and growth trends in these countries. About CapitaLand Limited CapitaLand is one of Asia s largest real estate companies. Headquartered and listed in Singapore, the multi-local company's core businesses in real estate, hospitality and real estate financial services are focused in growth cities in Asia Pacific, Europe and the Gulf Cooperation Council (GCC) countries. The company's real estate and hospitality portfolio spans about 120 cities in over 20 countries. CapitaLand also leverages on its significant asset base, real estate domain knowledge, financial skills and extensive market network to develop real estate financial products and services in Singapore and the region. The listed subsidiaries and associates of CapitaLand include Australand, CapitaMall Trust, CapitaCommercial Trust, Ascott Residence Trust and CapitaRetail China Trust. Issued by: CapitaLand Limited (Co. Regn.: N) Date: 29 September 2009 Analyst Contact Media Contact Harold Woo Shirlene Sim (Ms) SVP, Investor Relations Corporate Communications & Marketing Manager Tel: Tel: harold.woo@capitaland.com shirlene.sim@capitaland.com 2

3 ANNEX A Details of the Asset Swap Arrangement Mall / Land Parcel Pre Asset Swap Interest Development Funds SCP Post Asset Swap Interest Development Funds 1. Jiangbin Mall, Quanzhou Chikan Mall, Zhanjiang Duanzhou Mall, Zhaoqing Nancheng Mall, Dongguan Anyang Mall, Anyang Xinxiang Mall, Xinxiang Taohualun Mall, Yiyang Weiyang Mall, Yangzhou Yushan Mall, Kunshan Chengnanyuan Mall, Nanchang Gaoxin Mall, Weifang Liuquan Mall, Zibo Jinniu Mall, Chengdu Fucheng Mall, Mianyang Jingyang Mall, Deyang Nan an Mall, Yibin Xiangcheng Mall, Zhangzhou Guicheng Mall, Foshan Maonan Mall, Maoming Jiulongpo Mall, Chongqing Yuhuating Mall, Changsha Xinwu Mall, Wuhu Danshui Mall, Huizhou Changcheng Mall, Foshan Daliang Mall, Shunde Ma anshan Mall, Ma anshan Xiangmihu Mall, Shenzhen Land parcel, Nanchang Land parcel, Jiangmen Land parcel, Hengyang Land parcel, Zhuzhou Land parcel, Laiwu Land parcel, Tai an The remaining 51% is held by CapitaLand 2 The remaining 51% is held by CapitaRetail China Trust 3 To be divested jointly to a third party SCP 3

4 CapitaLand s Retail Footprint in China (Post-Asset Swap) Province / Municipality Name of Property / City The combined aggregate percentage stake owned by CRCT, the Development Funds, CapitaRetail China Incubator Fund and CapitaLand Anhui 1. Xinwu Mall, Wuhu 100% Beijing 2. Anzhen Mall 100% 3. Cuiwei Mall 100% 4. Jiulong Mall 100% 5. Taiyanggong Mall 100% 6. Tiantongyuan Mall 100% 7. Wangjing Mall 100% 8. Ximao Mall 100% 9. Xizhimen Mall 100% Chongqing 10. Jiulongpo Mall 100% 11. Shapingba Mall 100% Fujian 12. Jiangbin Mall, Quanzhou 100% 13. Xiangcheng Mall, Zhangzhou 100% Guangdong 14. Chikan Mall, Zhanjiang 100% 15. Duanzhou Mall, Zhaoqing 100% 16. Guicheng Mall, Foshan 100% 17. Maonan Mall, Maoming 100% 18. Nancheng Mall, Dongguan 100% Heilongjiang 19. Aidemengdun Mall, Harbin 100% 20. Xuefu Mall, Harbin 100% Henan 21. Anyang Mall, Anyang 100% 22. Xinxiang Mall, Xinxiang 100% 23. Landmark Mall, Zhengzhou 100% 24. Zhengzhou Mall, Zhengzhou 100% Hubei 25. Zhongshan Mall, Wuhan 100% Hunan 26. Yuhuating Mall, Changsha 100% 27. Taohualun Mall, Yiyang 100% Inner Mongolia 28. Saihan Mall, Huhhot 100% Jiangsu 29. Weiyang Mall, Yangzhou 100% 30. Yushan Mall, Kunshan 100% Jiangxi 31. Chengnanyuan Mall, Nanchang 100% Liaoning 32. Peace Plaza, Dalian 100% 4

5 Shandong 33. Rizhao Mall, Rizhao 100% 34. Gaoxin Mall, Weifang 100% 35. Liuquan Mall, Zibo 100% Shanghai 36. Longzhimeng Hongkou 50% 37. Longzhimeng Minhang 50% 38. Qibao Mall 100% Shannxi 39. Xindicheng Mall, Xi an 100% Sichuan 40. Jinniu Mall, Chengdu 100% 41. Shawan Mall, Chengdu 100% 42. Tianfu Mall, Chengdu 100% 43. Fucheng Mall, Mianyang 100% 44. Jingyang Mall, Deyang 100% 45. Nan an Mall, Yibin 100% Tianjin 46. Tianjinwan Mall 100% 5