BUSINESS. Huhhot. Zibo Weifang Anyang Xi an. Rizhao Xinxiang Zhengzhou Mianyang. Yangzhou Deyang. Kunshan Shanghai Chengdu Yiyang Chongqing.

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1 BUSINESS OVERVIEW Who We Are We believe that, upon our listing on the SGX-ST, we will be one of the largest listed pure-play shopping mall owners, developers and managers in Asia by total property value of assets and by geographic reach (in terms of number of malls and cities). We have an integrated shopping mall business model encompassing retail real estate investment, development, mall operations, asset management and fund management capabilities. We have interests in and manage a pan-asian portfolio of 86 retail properties (of which 59 are completed shopping malls and 27 are in various stages of development) across 48 cities in the five countries of Singapore, China, Malaysia, Japan and India, with a total property value of approximately S$20.3 billion (US$14.4 billion) and a total GFA of approximately 66.5 million square feet. Our effective interest in this portfolio is approximately S$7.0 billion (US$5.0 billion) in property value as of June 30, Our pro forma net asset value is approximately S$5.3 billion (US$3.8 billion) as of September 30, Set out below is a map of the locations of the 86 retail properties in which we have interests and which we manage: Harbin Hokkaido Huhhot Beijing Tianjin Dalian Zibo Jalandhar Weifang Anyang Xi an Rizhao Xinxiang Zhengzhou Mianyang Yangzhou Deyang Wuhan Kunshan Shanghai Chengdu Wuhu Hangzhou Yiyang Chongqing Nanchang Yibin Changsha Kobe Tokyo Osaka Udaipur Nagpur Quanzhou Foshan Zhangzhou Zhaoqing Dongguan Zhanjiang Maoming Hyderabad Mangalore Bangalore Mysore Cochin Penang Kuala Lumpur Singapore Singapore China Malaysia Japan India We are a wholly-owned integrated shopping mall business unit of CapitaLand, and, immediately following the Offering, CapitaLand will continue to be our majority shareholder. CapitaLand is one of Asia s largest listed real estate companies, with total assets of approximately S$27.5 billion (US$19.5 billion) and a market capitalization of approximately S$15.8 billion (US$11.2 billion) as of September 30, Headquartered and listed in Singapore, CapitaLand is a multi-local company with core businesses in real estate, hospitality and real estate financial services, focused in growth cities in Asia Pacific, Europe and the Gulf Cooperation Council countries. CapitaLand s real estate and hospitality portfolio spans more than 110 cities in over 20 countries. It also leverages on its significant asset base, real estate domain knowledge, financial skills and extensive market network to develop real 105

2 estate financial products and services in Singapore and the region. As of the Latest Practicable Date, Temasek and the companies under the Temasek group own in aggregate approximately 40.97% of CapitaLand. Temasek is wholly owned by the Minister for Finance (Incorporated), Singapore. Our Focus Our principal business strategy is to invest in, develop and manage a diversified portfolio of real estate used primarily for retail purposes in Asia, and to strengthen our market position as a leading owner, developer and manager of shopping malls in Asia. We believe that Asia offers significant economic and consumer growth potential. In 2008, Asia comprised approximately 56.7% of the world s population (with China and India together constituting approximately 36.0% of the world s population), and by 2025, Asia s population is expected to grow by approximately 635 million people and its share of the world s population is expected to reach approximately 59.5%. At the same time, Asia is undergoing rapid economic development. In 2008, China was the second largest economy in the world while India was the fourth largest (measured in terms of purchasing power parity), and both economies are expanding at rates above the average global growth rate. We believe that the major Asian economies, including China and India, are likely to contribute significantly to global economic growth in the future. Economic growth in Asia coupled with its growing urban population has resulted in a growing middle income population with increased affluence and higher spending power. This makes Asia, in particular China and India, one of the world s largest and growing consumer markets. See Appendix J Industry Overview. Notwithstanding an increase in development over the past few years, retail shopping in China and India is still relatively traditional and unorganized, with consumers typically shopping at street markets, mom-and-pop shops, counter stores and kiosks where the ownership and management generally rests with a single person or family, compared to the organized shopping format and experience in modern malls common in more developed countries. We believe that there is strong growth potential for the organized retail format in China and India. Even for more mature Asian markets such as Singapore, Malaysia and Japan, the retail space per capita is relatively low compared to that of Western countries, which we expect may provide us with opportunities to grow our business in these Asian markets. See Appendix J Industry Overview. With our diverse portfolio of interests in and management of 86 retail properties (of which 59 are completed shopping malls and 27 are in various stages of development), located across 48 cities in five Asian countries with a total population of approximately 2.68 billion people, combined with our track record in Asian retail real estate investment, development, mall operations, asset management and fund management, we believe that we are wellpositioned to benefit from this growth potential in Asia. Specifically, we aim to maintain a balanced real estate investment portfolio of predominantly income-producing shopping malls in the more developed Asian countries, such as Singapore, Malaysia and Japan, to provide income stability, while we grow our portfolio of operating shopping malls and retail properties under development in the emerging markets of China and India, as well as selective developments in Singapore and Malaysia. When suitable opportunities arise, we intend to extend our portfolio to other Asian markets where we do not presently operate. Our Track Record of Growth Leveraging on our integrated retail real estate capabilities across all facets of the retail real estate value chain, we hold our property investments both directly and indirectly through various funding vehicles, including REITs, private real estate funds and joint ventures. These funding vehicles have allowed us to enhance our capital productivity and expand our funding capability so that we are able to further increase the size, scale and efficiencies of our operations. As a result of our capital funding and expansion strategy, our effective interest in the property value of the properties within our portfolio, which we manage, has grown from approximately S$1.2 billion (US$0.9 billion) as of December 31, 2002 to approximately S$7.0 billion (US$5.0 billion) as of June 30, The total property value of this portfolio correspondingly increased from approximately S$1.8 billion (US$1.3 billion) as of December 31, 2002 to S$20.3 billion (US$14.4 billion) as of June 30, 2009, representing more than a ten-fold increase in close to seven years. 106

3 Our track record of growth from 2002 until June 30, 2009 is summarized below: Our Track Record of Growth The property value of the properties within our portfolio that we have an interest in and manage (in S$ billions) Our effective interest in the property value of the properties within our portfolio that we have an interest in and manage (in S$ billions) December 31, December 31, December 31, 2004 December 31, December 31, December 31, December 31, 2008 June 30, 2009 Retail properties Employees ,780 (3) As of December 31, 2002 As of June 30, 2009 (1) Number of retail properties (2) Employees ,780 (3) Total property value (100% basis) (4)... S$1.8 billion S$20.3 billion Total property value (effective interest) (5).. S$1.2 billion S$7.0 billion (6) Location of our property interests... Singapore Singapore, China, Malaysia, Japan, India GFA (sq. ft.) (7) million 66.5 million Notes: (1) Assuming the Corporate Reorganization and the Asset Swap and Divestment have been completed as of June 30, Excludes our interest in Horizon Realty Fund, which we do not manage, our investment in The Link REIT units, which have been disposed of as of September 30, 2009, and VivoCity, Singapore, which we manage but in which we do not have any ownership interest. (2) The decrease from 96 retail properties in 2008 to 86 properties as of June 30, 2009 is primarily due to the Corporate Reorganization and the Asset Swap and Divestment. For further details see Our History, Corporate Reorganization, Capitalization and Asset Swap and Divestment. (3) As of September 30, (4) 100% basis refers to the aggregate property value of the properties in the portfolio (where the property value of each of the properties is taken in its entirety regardless of the extent of our interest). (5) Effective interest refers to the property values proportionate to our ownership interest in the properties. (6) Our effective interests in properties and private real estate funds are as of September 30, 2009 and our interests in CTM and CRCT are as of the date of this offering document. (7) The aggregate GFA of the properties in the portfolio (where the GFA of each of the properties is taken in its entirety regardless of the extent of our interest). OUR COMPETITIVE STRENGTHS A Leading Integrated Shopping Mall Owner, Developer and Manager in Singapore and China In Singapore, we are the market leader as the largest shopping mall owner and manager, with interests in 16 completed shopping malls and one retail development project, comprising an aggregate GFA of approximately 11.2 million square feet and NLA of 5.5 million square feet as of June 30, This constitutes approximately 20.5% of Singapore s total retail real estate supply in terms of NLA, with the next largest player constituting approximately 6.0% of Singapore s total retail real estate supply in terms of NLA. See Appendix J Industry Overview. Our most recent high profile retail real estate development in Singapore is ION Orchard, a strategically located luxury shopping mall at Singapore s premier shopping address, Orchard Road, which opened on July 21,

4 In China, we have an early-mover advantage, as the CapitaLand Group has had operations in China since This has allowed us to build up a network of contacts and knowledge of local market conditions. We believe that, upon our listing on the SGX-ST, we will be one of the largest listed shopping mall owners, developers and managers in China. From seven retail properties located in seven cities in China with a total GFA of approximately 3.8 million square feet in 2005, we have been able to expand our presence in China to own interests in and manage 50 retail properties (of which 18 properties are in various stages of development) located in 33 cities, with a total GFA of approximately 43.4 million square feet as of June 30, Our total number of employees in China has increased from 310 in 2005 to 2,015 as of September 30, We believe that China, which has the largest population in the world, estimated at 1.3 billion in 2008, provides significant opportunities for us to grow our business. The following table shows our history of growth in China: As of December 31, 2005 As of June 30, 2009 (1) Number of retail properties Employees ,015 (2) Total property value of all the properties (100% basis) (3) S$464.1 million S$6,642.8 million Total property value (effective interest) (4) S$247.6 million S$2,023.2 million (5) Number of Chinese cities GFA (sq. ft.) (6) million 43.4 million Notes: (1) Assuming the Corporate Reorganization and the Asset Swap and Divestment have been completed as of June 30, Excludes our investment in The Link REIT units, which have been disposed of as of September 30, (2) As of September 30, (3) 100% basis refers to the aggregate property values of the properties in the portfolio (where the property value of each of the properties is taken in its entirety regardless of the extent of our interest). (4) Effective interest refers to the property values proportionate to our ownership interest in the properties. (5) Our effective interests in properties and private real estate funds are as of September 30, 2009, and our interests in CRCT are as of date of this offering document. (6) The aggregate GFA of the properties in the portfolio (where the GFA of each of the properties is taken in its entirety regardless of the extent of our interest). Well-Positioned to Benefit from Opportunities Presented by Significant Growth in the Asian Retail Real Estate Sector and Consumer Spending with our Balanced Portfolio We believe that Asia, with approximately 56.7% of the world s population, offers significant growth opportunities in retail real estate and organized shopping mall development and investment, given its large and rapidly growing population, increasing affluence and spending power, increasing spending on retail consumption and growing urbanization. We have a strong presence in Asia with our portfolio of interests in and management of 86 retail properties (of which 59 are completed shopping malls and 27 are in various stages of development) located across 48 cities in five Asian countries with a total population of approximately 2.68 billion people as shown in the table below: Countries Completed (3) Scheduled for completion in 2009 Number of Retail Properties (1) Targeted for completion in 2010 Targeted for completion in 2011 Targeted for completion in 2012 and beyond Total GFA (1)(2) (million sq. ft.) Singapore China Malaysia Japan India Total Notes: (1) Assuming the Corporate Reorganization and the Asset Swap and Divestment have been completed as of June 30, Excludes our interest in Horizon Realty Fund, which we do not manage, our investment in The Link REIT units, which have been disposed of as of September 30, 2009, and VivoCity, Singapore, which we manage but in which we do not have any ownership interest. 108

5 (2) The aggregate GFA of the properties in the portfolio (where the GFA of each of the properties is taken in its entirety regardless of the extent of our interest). (3) Refers to properties that were completed as of June 30, We have a well-balanced portfolio of predominantly income-producing shopping malls in the more developed Asian countries of Singapore, Malaysia and Japan to offer income stability, and a growing portfolio of retail properties under development and operational shopping malls in China and India, two of the world s most populous countries and fastest growing economies. As of June 30, 2009, approximately 70.0% of our total property value (effective interest) is located in the more developed Asian markets of Singapore, Malaysia and Japan. However, in terms of GFA (effective interest), approximately 70.3% of our properties are located in the emerging markets of China and India. The following charts show the geographic breakdown of our effective interests in property value and in GFA in our portfolio of retail properties: By Property Value (1) By GFA (1) Effective Interest (2) Malaysia 11.9% China 28.9% Japan 2.5% India 1.1% Singapore 55.6% Malaysia 12.6% Japan 2.1% India 6.8% Singapore 15.0% China 63.5% S$7.0 billion 22.9 million sq. ft. Notes: (1) Assuming the Corporate Reorganization and the Asset Swap and Divestment have been completed as of June 30, Excludes our interest in Horizon Realty Fund, which we do not manage, our investment in The Link REIT units, which have been disposed of as of September 30, 2009, and VivoCity, Singapore, which we manage but in which we do not have any ownership interest. (2) Effective interest refers to the aggregate property values and GFA that are proportionate to our ownership interest in the properties (where our interests in properties and private real estate funds are as of September 30, 2009, and our interests in CMT and CRCT are as of the date of this offering document). Given our recurring income base in the more established markets, especially Singapore, our early-mover advantage in China and our growing presence in India, we believe we are well-positioned to expand our portfolio and to benefit from increasing consumer demand driven by expected growth trends in Asia and the growth potential from the relatively low level of consumers shopping at organized malls. 109

6 Unique Integrated Shopping Mall Business Model We have an integrated shopping mall business model, with in-house capabilities in retail real estate investment, development, mall operations, asset management and fund management. The following is a diagrammatic representation of our skill sets across the retail real estate value chain: Retail Real Estate Management Retail Real Estate Capital Management Property Management Mall Management & Operational Leasing Strategic Marketing Design & Development Management Asset Management Strategic Planning & Investment Fund Structuring & Management We believe that our integrated shopping mall business model, which encompasses a spectrum of services and capabilities to own, develop and manage retail properties across Asia, is unique among listed companies in Asia. We believe our business model enables us to extract value across the entire retail real estate value chain and allows us to successfully source, develop and manage a significant portfolio of retail properties within a relatively short period of time. For example, we are able to respond relatively quickly to real estate acquisition and development opportunities because we have the fund structuring and management capability to access financial resources and we are also able from the outset to create a project development plan from concept to completion to ongoing tenancy and retail property management. From an investment in and management of five retail properties in Singapore with a staff strength of 182 employees in 2002, we have significantly and successfully grown our portfolio and our operations to an investment in and management of 86 retail properties (of which 59 are completed shopping malls and 27 are in various stages of development) as of June 30, 2009 and a staff strength of 2,780 employees across five countries, namely, Singapore, China, Malaysia, Japan and India, as of September 30, See Our Track Record in Retail Real Estate Management and Retail Real Estate Capital Management. Well-diversified Portfolio of Quality Retail Properties We believe our interests in and management of 86 retail properties (of which 59 are completed shopping malls and 27 are in various stages of development) located across 48 cities in five countries, namely, Singapore, China, Malaysia, Japan and India, offer geographical and income diversification, without over-reliance on any single retail property or market. The income stream from our retail property portfolio is supported by a large and diverse tenant base. Our properties are strategically located in catchment areas with an established or growing population and are wellconnected to public transportation systems, such as subway stations and bus stations. Our shopping malls that have been operational for more than one year as of June 30, 2009 also have a high average committed occupancy rate of approximately 94.3% as of June 30, The quality of our properties is further illustrated by their resilient performance amid the global financial and economic crisis in For example, the committed occupancy rate of our operational shopping mall portfolios in Singapore and China, as illustrated by the portfolios of CMT and CRCT, the REITs managed by us, has remained consistently high from 2007 to 2009 as shown in the table below: As of December 31, 2007 As of December 31, 2008 As of June 30, 2009 CMT s portfolio % 99.7% 99.7% CRCT s portfolio % (1) 97.7% 95.7% Note: (1) Excluding Saihan Mall as the mall was undergoing extensive asset enhancement works. Many of our properties also benefit from the quality of their anchor tenants, who are mostly well-established brand names and among the market leaders in their respective trade sectors. Examples of such anchor tenants include 110

7 Wal-Mart, Beijing Hualian Group ( BHG ) and NTUC FairPrice. Wal-Mart is the world s largest retailer by sales, with stores in 15 countries. BHG is a large retailer in China that owns and operates hypermarkets, supermarkets and department stores. NTUC FairPrice is the largest supermarket and convenience store operator in Singapore. An Extensive Network of International and Domestic Tenants Due to the scale of our operations, we have an extensive base of international and domestic tenants with more than 7,700 leases as of June 30, 2009, across the different segments of the retail market, ranging from supermarket and hypermarket operators such as Wal-Mart, BHG and NTUC FairPrice, to luxury retailers such as Louis Vuitton and Cartier. The following is a selection of the international and domestic retail tenants at our properties, as of June 30, 2009: Selected Tenants (By Trade Name) Domestic International Singapore China Malaysia Japan India 7-Eleven McDonald s 77th Street 1000 Colors Echo Park Co-op Kobe Access2future Ajisen Ramen Muji BreadTalk ANTA Esquire Kitchen Don Quijote Crossword Bally Nike Capitol Optical BeLLE Factory Outlet Store (F.O.S.) Honma Golf Fame Cinemas Bata Pizza Hut Charles & Keith BHG British India Ito Yokado Favorite Shop Carrefour Sephora Eu Yan Sang Cartier Starbucks Golden Village Charme Restaurant Hai Di Lao Huo Guo Home s Harmony Izumiya Health & Glow Nichii Kojima Kalmane Koffees CK Calvin Klein Swatch Kopitiam JNBY Old Town White Coffee H&M Tesco NTUC FairPrice LI-NING Padini IWC Uniqlo Old Chang Kee MaoJia Restaurant Parkson Mainami Amusement Shimamura Music Summit Supermarket Megamart MTR Namdhari Fresh KFC Vero Moda Pet Lovers Centre Ochirly Reject Shop Super ARCs Louis Vuitton Pantaloon Factory Outlet Wal-Mart Popular PanKoo Secret Recipe Super Value Sanskruti Silks Mango Watsons Robinsons Sport 100 Mannings Zara Soo Kee Jewellery Xihu Spring Restaurant The Chicken Rice Shop Tsutaya Transit Tomei Yamato Whizz With our presence in 48 cities across five countries in Asia, retailers benefit from our ability to offer them the opportunity to open stores in our shopping malls that are located in cities and countries where they may not already have stores, which, in the process, allows them to expand their scale of operations and increase their sales. Over several years of operation, through the tenants sales data collected by the POS systems in Singapore and China, we have acquired an understanding of the characteristics and performance of different trade sectors in various markets. This allows us to understand shoppers preferences in these locations. In addition, retailers also benefit from our specific knowledge of tenant needs and retail demand in the different markets in which we operate. Through our active mall management and proactive leasing and marketing strategy, we are able to attract and maintain a diverse mix of tenants and to significantly influence the tenant mix at the shopping malls we manage. This allows us to optimally manage the tenant and trade mix in our shopping malls, which in turn enables us to optimize the attractiveness of our malls and may potentially generate higher shopper traffic for our tenants. We believe that the above tenant network effect helps us to achieve strong occupancy rates for our operating malls, which would result in sustainable rental income and support the capital values of the retail properties in our portfolio. Experienced Management Team and Good Corporate Governance We benefit from an experienced management team with executive officers who have long and proven track records in managing, investing in, developing and enhancing retail properties. In addition, we have offices in each country 111

8 in which we operate. These offices are staffed with experienced localized management teams which enable us to achieve scalability in our business. For example, we have a total local staff of 2,015 people in China as of September 30, These include employees who are real estate professionals with strong track records of successfully sourcing, executing and integrating retail real estate acquisitions in China. The team has demonstrated its capabilities to acquire land, develop projects and manage retail properties in China. Under the management of our executives, the total property value of the properties within our portfolio that we have an interest in and manage has grown from approximately S$1.8 billion (US$1.3 billion) in 2002 to approximately S$20.3 billion (US$14.4 billion) as of June 30, 2009, and we have grown our portfolio and our operations from investing in and managing five retail properties as of December 31, 2002 to investing in and managing 86 retail properties (of which 59 are completed shopping malls and 27 are in various stages of development) as of June 30, This growth demonstrates our management team s ability to source, structure and execute acquisitions, extract value through mall management, development and asset enhancements. Our management team s efforts and contributions to the development of our shopping mall business has been recognized by the industry through several awards such as, Best Retail Developer in Asia, Best Retail Developer in China and Best Retail Developer in Singapore conferred at the Euromoney Real Estate Awards in In line with good corporate governance practices, our Company has a Board that comprises a majority of Independent Directors with a range of experience in various Asian countries. In addition, CMT, a REIT managed by us, has also received numerous awards over the years, including the Most Transparent Company under the REITs category of the Investors Choice Awards by the Securities Investors Association (Singapore) for five consecutive years since Capital Structure Positioned for Growth As of September 30, 2009 and following the Capitalization, we have more than S$500.0 million of cash and cash equivalents and a low level of gearing. We believe that our strong financial position and capital structure will provide us with the financial flexibility to fund our growth and expansion and allow us to respond quickly and competitively to further capitalize on the emerging investment opportunities in the Asian retail real estate market. These opportunities include acquisitions of land for greenfield projects, brownfield projects and completed malls, asset enhancement initiatives and other merger and acquisition opportunities in Asia. Our proven strategy of using various investment modes through direct ownership of properties, REITs or private real estate funds that we manage, and joint ventures, enables us to enhance our capital productivity. When structuring our funding requirements, we may, if appropriate to do so, incur debt at the asset holding vehicles so as to take advantage of the natural currency hedge that arises from making an investment and funding the investment in the same currency. At the asset holding vehicle level, which includes the private real estate funds in which we have an interest, the loan to value of operating retail properties typically ranges between 30.0% and 60.0%. Given the financial strength of our business model, we believe that a net debt-to-equity ratio of 0.3 to 0.5, representing a potential debt capacity of S$1.6 billion to S$2.6 billion that is available for funding growth and expansion, is a range in which we can comfortably operate. This is subject to factors such as the state of the capital and credit markets, the proportion of development versus operational assets, the level of maturity and stability of the assets, the amount of leverage at the investee company, the cost of debt, and our debt maturity profile, among many other considerations. We have commitments from banks for credit facilities of over S$500.0 million which may be used to fund growth and expansion. In addition, we expect that the listing of our Shares on the SGX-STwill allow us to raise funds from the capital markets in the form of equity, debt or other hybrid securities under appropriate market conditions. We Will Continue to be a Member of the CapitaLand Group CapitaLand has publicly stated that it will retain majority control of our Company and that we will remain a core business of CapitaLand for the foreseeable future. We believe our relationship with CapitaLand will continue to provide us with access to CapitaLand s wide business network across various countries. As we build our integrated shopping mall business in Asia, we expect that CapitaLand s strong branding in the real estate sector will open up opportunities to us. We also expect to be able to tap into CapitaLand s multi-sector expertise. One of the key examples of our ability to do so is the Orchard Turn Development in Singapore, where we collaborated with the CapitaLand Group and our joint venture partner Sun Hung Kai Properties Limited in the planning and development 112

9 of The Orchard Residences, the residential component of the development. In terms of our management and operations, we have been able to utilize various shared systems and services provided by CapitaLand to us, thus achieving greater operational efficiency. In order for us to continue to collaborate with and tap into CapitaLand s network and support, we have formalized some of these processes and entered into the Collaboration Agreement, Licence Agreement and Shared Services Agreement with CapitaLand. See Interested Person Transactions and Conflicts of Interests. OUR BUSINESS STRATEGIES Focus: Asian Retail Market Our principal strategy is to invest in and manage a portfolio of real estate assets used primarily for retail purposes in Asia. Economic growth in Asia, coupled with its growing urban population, has resulted in the emergence of a large middle income population with increased affluence and higher spending power. We believe this has made Asia, in particular China and India, one of the world s largest and fastest growing consumer markets. To capitalize on this opportunity, we plan to strengthen our market position as a leading owner, developer and manager of shopping malls in Asia. We expect that Singapore, which has an estimated population of 4.9 million people as of June 30, 2009, will remain an anchor market for us by providing a recurring flow of rental income from our portfolio of properties which are located in various parts of the country. With its relatively low average retail space per capita when compared to developed economies such as United States and Australia (see Appendix J Industry Overview ), we expect to continue to pursue selective acquisition and development opportunities to extend our market leadership position in Singapore. In Malaysia, our focus will be on extracting organic growth through asset enhancement initiatives at our Malaysia properties and to capitalize on the proximity of Malaysia to Singapore to achieve operational synergies. We will continue to leverage on the large base of quality and established tenants in Japan, and work with the appropriate tenants to bring them to other markets in Asia. In anticipation of continued growth in consumer demand and retail consumption and a strong growth potential for the organized retail format in the emerging markets of China and India, we plan to accelerate our growth strategy of investing in retail real estate in these two markets, with an initial primary focus on China. In China, we plan to accelerate development of a significant number of shopping malls and to actively seek opportunities to expand our portfolio in key cities so as to further strengthen our market position in China. In India, we seek to build our presence through our development pipeline. When suitable opportunities arise, we intend to grow our portfolio to include other Asian markets where we do not presently operate. In each of these countries, we aim to capitalize on our integrated business model and proven track record to enhance real estate value through development and asset enhancement initiatives. Balance: Using our Recurring Income to Support our Expansion into Emerging Asian Markets We derive recurring rental income from our portfolio of operational shopping malls in Singapore, China, Malaysia and Japan as well as fee-based income received from our related fund and mall management businesses. We plan to use the recurring income streams from these markets to further strengthen our market position in China and to support our expansion plans in India. As of June 30, 2009, we have interests in 50 retail properties in China, of which 18 are under development. In India, we have interests in eight retail development projects and one shopping mall which was completed recently. A gestation period of two to three years is typically required to develop a retail project from concept to construction and completion, with an additional two to three years before a stabilized yield from the shopping mall can be extracted. As such, we currently expect China to begin contributing to our income in the medium term, while we expect India to do so in the medium to long term. Once the yields from these markets stabilize, their recurring income, together with the existing recurring income we currently receive, can be used to support our future expansion into other markets in Asia when suitable opportunities arise. 113

10 The following is a diagrammatic representation of the timing of expected income contribution from our properties in each of the countries we currently or may in future operate: Expected Income Contribution Going Forward Income Contribution Others India China Singapore / Malaysia / Japan Immediate Medium term Medium-Long term Long term Scale and Scalability: Leverage on Size and Scale We intend to focus on markets where we can invest in, develop and manage multiple shopping malls in order to benefit from economies of scale and the network effects of a wide tenant base. Over the years and given our scale of operation, we have established an extensive and diversified tenant base. We believe in partnering with our tenants to grow their businesses including introducing them to our shopping malls in countries and cities in which they intend to expand. The size of our tenant base provides us with a pool of prospective tenants that enables us to optimally manage the tenant and trade mix in our existing and new properties. In turn, we expect our pool of tenants to grow as we expand our portfolio of properties. Given the capital intensive nature of retail properties, our key strategy to achieve scale is to enhance our capital productivity. We plan to continue to pursue acquisitions through productive use of our capital, by way of monetizing our assets through our REITs, private real estate funds or joint ventures with strategic partners, thereby preserving and recycling capital to invest in more retail properties while retaining our integrated shopping mall business. A diagrammatic representation of this strategy is set out below: Capital Recycling Process Origination: Pipeline of land / properties Development Completed / Operational malls Property / Land Trader Developer + Owner Developer + Owner + Manager + Capital Recycling Capabilities Holding vehicle Directly-held Joint Ventures Private Real Estate Funds REITs and other appropriate vehicles The retail real estate business is human capital-intensive as the development and management of each shopping mall requires a complete development, mall operation, asset and fund management team to extract value from every part of the retail real estate value chain. We have built up a large team of experienced management who have a proven track record in developing, investing in, managing and enhancing retail real estate. We believe that continual 114

11 investment in our human capital is central to our ability to increase the scale of our business across key Asian markets. OUR BUSINESS OPERATIONS Our business operations comprise two main business areas: (i) our property interests, which are held directly or through REITs, private real estate funds and joint ventures; and (ii) our management business. Each of these business areas is discussed below. Our Property Interests As of June 30, 2009, our portfolio of interests in real estate comprises 86 retail properties that we also manage and which are located across 48 cities in the five countries of Singapore, China, Malaysia, Japan and India, as summarized in the table below: Countries Completed (3) Scheduled for Completion in 2009 Number of Retail Properties (1) Targeted for Completion in 2010 Targeted for Completion in 2011 Targeted for Completion in 2012 and Beyond Total GFA (1)(2) (million sq. ft.) Singapore China Malaysia Japan India Total Notes: (1) Assuming the Corporate Reorganization and the Asset Swap and Divestment have been completed as of June 30, Excludes our interest in Horizon Realty Fund, which we do not manage, our investment in The Link REIT units, which have been disposed of as of September 30, 2009, and VivoCity, Singapore, which we manage but in which we do not have any ownership interest. (2) The aggregate GFA of the properties in the portfolio (where the GFA of each of the properties is taken in its entirety regardless of the extent of our interest). (3) Refers to properties that were completed as of June 30, Our retail property interests are held through a combination of direct holdings and associated entities such as REITs, private real estate funds and joint ventures. Of the 86 retail properties, 59 are completed shopping malls and 27 are in various stages of development. 115

12 The following diagram illustrates the various ways in which we hold our retail property interests in each country where we operate: Singapore (1) China (2) Malaysia Japan India (3) Directly Held Retail Properties Clarke Quay (100.00%) One-North (100.00%) Joint Venture Orchard Turn Development (50.00%) Joint Venture 5 retail properties held with joint venture partner (4) China Funds CapitaRetail China Development Fund (45.00%) CapitaRetail China Development Fund II (45.00%) CapitaRetail China Incubator Fund (30.00%) Raffles City China Fund Limited (15.00%) Directly Held Retail Properties Gurney Plaza (100.00%) Held Through Subordinated Notes Mines Shopping Fair (5) Sungei Wang Plaza (5) Japan Fund CapitaRetail Japan Fund Private Limited (26.29%) India Fund CapitaRetail India Development Fund (45.45%) 29.86% 21.10% 19.72% Interest in and management of 17 properties (1 under development) 11.2 million sq. ft. of GFA Interest in and management of 50 properties (18 under development) 43.4 million sq. ft. of GFA Interest in and management of 3 properties 2.9 million sq. ft. of GFA Interest in and management of 7 properties 1.8 million sq. ft. of GFA Interest in and management of 9 properties (8 under development) 7.2 million sq. ft. of GFA Notes: Our interests in properties and private real estate funds are as of September 30, 2009, and our interests in CMTand CRCTare as of the date of this offering document. The number of retail properties and GFA (which is based on the aggregate GFA of each property in its entirety) are as of June 30, (1) Excludes VivoCity, Singapore, which we manage but in which we do not have any ownership interest. (2) Excludes our investment in The Link REIT units, which have been disposed of as of September 30, 2009, and assumes the Corporate Reorganization and the Asset Swap and Divestment have been completed as of June 30, (3) Excludes our interest in Horizon Realty Fund, which we do not manage. (4) Includes five shopping malls that are held jointly by us, and the China Development Fund. (5) We hold % of the subordinated notes issued in respect of Mines Shopping Fair and Sungei Wang Plaza. The following table shows a summary of the 86 properties in which we have interests and that we manage, by country, as of June 30, 2009: Effective Interest (1)(2) 100% Basis (1)(3) GFA Property Value (million sq. ft.) (S$ billion) Property Value (S$ billion) GFA (million sq. ft.) Singapore China Malaysia Japan India Total Notes: (1) Figures assume that the Corporate Reorganization and the Asset Swap and Divestment have been completed as of June 30, Excludes our interest in Horizon Realty Fund, which we do not manage, our investment in The Link REIT units, which have been disposed of as of September 30, 2009, and VivoCity, Singapore, which we manage but in which we do not have any ownership interest. (2) Effective interest refers to the aggregate property values and GFA that are proportionate to our ownership interest in the properties (where our interests in properties and private real estate funds are as of September 30, 2009, and our interests in CMT and CRCT are as of the date of this offering document). (3) 100% basis refers to the aggregate property values and GFA of the properties in the portfolio (where the property value and GFA of each of the properties is taken in its entirety regardless of the extent of our interest). 116

13 The following pie charts show the breakdown of our property interests in each country in terms of property value and GFA as of June 30, 2009: By Property Value (1) By GFA (1) Effective Interest (2) Malaysia 11.9% China 28.9% Japan 2.5% India 1.1% Singapore 55.6% India Japan 6.8% 2.1% Malaysia 12.6% Singapore 15.0% China 63.5% S$7.0 billion 22.9 million sq. ft. Malaysia 4.1% Japan 3.3% India 1.7% Japan 2.8% India 10.8% Singapore 16.9% 100% Basis (3) China 32.8% Singapore 58.1% Malaysia 4.3% China 65.2% S$20.3 billion 66.5 million sq. ft. Notes: (1) Assuming the Corporate Reorganization and the Asset Swap and Divestment have been completed as of June 30, Excludes our interest in Horizon Realty Fund, which we do not manage, our investment in The Link REIT units, which have been disposed of as of September 30, 2009, and VivoCity, Singapore, which we manage but in which we do not have any ownership interest. (2) Effective interest refers to the aggregate property values and GFA that are proportionate to our ownership interest in the properties (where our interests in properties and private real estate funds are as of September 30, 2009, and our interests in CMT and CRCT are as of the date of this offering document). (3) 100% basis refers to the aggregate property values and GFA of the properties in the portfolio (where the property value and GFA of each of the properties is taken in its entirety regardless of the extent of our interest). In terms of our effective interest, the retail properties under development comprise approximately 18.1% by property value and 37.0% by GFA of our property portfolio as of June 30, Furthermore, in terms of the retail properties under development, the development projects in China form the bulk of the development pipeline, representing approximately 77.1% by GFA of the total development assets in our property portfolio. This is illustrated in the following pie charts: Stable Portfolio with Growth Component China Pipeline Forms Bulk of Growth Component Completed 14.4 million sq. ft. (63.0%) Under Development 8.5 million sq. ft. (37.0%) Others 1.9 million sq. ft. (22.9%) China 6.6 million sq. ft. (77.1%) 22.9 million sq. ft. 8.5 million sq. ft. 117

14 A comparison by country of the average valuation per square foot of properties that were completed as of June 30, 2009 in which we have an interest and manage is summarized below: Number of Completed Properties Property Value (100% Basis) (1) (S$ billion) GFA (100% Basis) (1) (million sq. ft.) Property Value by GFA (100% Basis) (1) (S$ per sq. ft.) Singapore ,052 China Malaysia Japan India Total/Weighted Average Notes: The table above assumes that the Corporate Reorganization and the Asset Swap and Divestment have been completed as of June 30, It also excludes our interest in Horizon Realty Fund, which we do not manage, our investment in The Link REIT units, which have been disposed of as of September 30, 2009 and VivoCity, Singapore, which we manage but in which we do not have any ownership interest. (1) 100% basis refers to the aggregate property values and GFA of the properties in the portfolio (where the property value and GFA of each of the properties is taken in its entirety regardless of the extent of our interest). A comparison by country of the net property income yield and committed occupancy rate of the shopping malls that are completed and have been operational for more than one year as of June 30, 2009, in which we have an interest and manage is summarized as follows: Number of Operational Shopping Malls Net Property Income Yield (1) (100% Basis) (2) (%) Occupancy Rate (3) (100% Basis) (2) (%) Singapore % 99.1% China % 93.5% Malaysia % 98.7% Japan % 78.7% India... N.A. N.A. Total/Weighted Average % 94.3% Notes: The table above excludes ION Orchard, Singapore; Yushan Mall, Kunshan, China; Taohualun Mall, Yiyang, China; Jingyang Mall, Deyang, China; Weiyang Mall, Yangzhou, China; Nancheng Mall, Dongguan, China; Duanzhou Mall, Zhaoqing, China; Nanan Mall, Yibin, China; TianjinOne Mall, Tianjin, China; Raffles City Beijing, China and Forum Value Mall, Bangalore, India, which were completed but were operational for less than one year as of June 30, 2009 and Jurong Entertainment Centre, Singapore, which was closed pending asset enhancement works. It assumes that the Corporate Reorganization and the Asset Swap and Divestment have been completed as of June 30, It also excludes our interest in Horizon Realty Fund, which we do not manage, our investment in The Link REIT units, which have been disposed of as of September 30, 2009 and VivoCity, Singapore, which we manage but in which we do not have any ownership interest. (1) Refers to the weighted average yield of our operational shopping malls by country, computed by using the annualized net property income of operational shopping malls for the period from January 1, 2009 to June 30, 2009, divided by the property value of the properties as of June 30, (2) 100% basis refers to the net property income yield and occupancy rate of the properties in the portfolio (where the net property income yield and occupancy rate of each of the properties is taken in its entirety regardless of the extent of our interest). (3) Refers to the weighted average committed occupancy rate as of June 30, 2009 of our operational shopping malls by country (on a 100% basis). 118

15 Types of property interests A general description of the nature and the types of property interests we have in our portfolio and the number of properties in each country in our portfolio with the relevant type of property interest is described below. The information is presented as of September 30, A B C D E F G H I Number of properties in each country with the relevant type of property interest Property Interests Singapore China Malaysia Japan India Total Title to any or a combination of land, completed building(s) and/or strata title has been obtained. Title to land has been obtained but title to the buildings (where building title is separate from title to land) will only be obtained when development is completed. Interests derived from development agreements, where title to the land and buildings will only be obtained when development is completed. Interests derived under sale and purchase agreement(s) of property under development by a third party, where physical control and title to the land and buildings have not been transferred and will only be transferred to us or the entities that we have invested in when the development is completed. Interests derived under an agreement to sell property under development where the vendor has to meet certain conditions precedent before the sale and purchase agreement can be signed and physical control and title to the land and buildings will only be transferred to us or the entities that we have invested in when the development is completed. Interests derived from a share and debenture purchase and subscription agreement ( SDPSA ) to invest in an entity that has signed an agreement to acquire land, which SDPSA is subject to certain conditions precedent being satisfied by the joint venture partner. Interests derived under a sale and purchase agreement to acquire an entity that owns land, pending government approval. Interests derived under a master lease or long-term lease agreement. Interests under subordinated notes issued by the special purpose vehicles which own the interests in the properties pursuant to asset backed securitization structures Total

16 The quality and extent of title to or interests in the properties in our portfolio, is subject to risks. See Risk Factors We face risks relating to the quality and extent of the title to or interests in the properties in our portfolio. Certain of these properties are subject to mortgages or other encumbrances incurred in the ordinary course of business as part of the financing of the properties. Property highlights by country Singapore In Singapore, we are the market leader as the largest shopping mall owner and manager with interests in 16 completed shopping malls and one retail development project measuring approximately 11.2 million square feet of GFA and 5.5 million square feet of NLA as of June 30, Our interests in 14 of these shopping malls are held through CMT, a REIT listed on the SGX-ST in which we have a 29.86% interest as of the date of this offering document. We are also the mall and REIT managers of CMT. Our interest in the Orchard Turn Development in Singapore (which includes ION Orchard, a shopping mall in Orchard Road and The Orchard Residences, a luxury residential development) is held through a 50:50 joint venture with Sun Hung Kai Properties Limited, a Hong Kong based property developer. We have a % interest in Clarke Quay and One-North, which is currently under development. A summary of our retail property portfolio in Singapore is set out in the table below. Details of each asset are set out in Appendix I. Holding Structure Completed Number of Retail Properties (1) Under Development Wholly-owned: Held with joint-venture partners: Held through CMT: Total Note: (1) Excludes VivoCity, Singapore, which we manage but in which we do not have any ownership interest. Set out below is the aggregate of the GFA, NLA, property value and number of leases of the above properties (where the GFA, the NLA and the property value of each of the properties is taken in its entirety regardless of the extent of our interest), as of June 30, 2009: Total GFA million sq. ft. Total NLA (1) million sq. ft. Total property value.... S$11.8 billion Total number of leases... 2,641 Note: (1) Refers to the NLA of the retail properties which were completed as of June 30, Total 120