GRANT OF NEW OPTION TO PURCHASE 50.0% INTEREST IN XI AN NORTH HIGH SPEED RAILWAY INTEGRATED DEVELOPMENT

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1 (a business trust constituted on 22 February 2011 under the laws of the Republic of Singapore) Managed by Perennial China Retail Trust Management Pte. Ltd. GRANT OF NEW OPTION TO PURCHASE 50.0% INTEREST IN XI AN NORTH HIGH SPEED RAILWAY INTEGRATED DEVELOPMENT 1. Introduction Perennial China Retail Trust Management Pte. Ltd., in its capacity as the trustee-manager of Perennial China Retail Trust ( PCRT and as trustee-manager of PCRT, the Trustee-Manager ) is pleased to announce that Perennial Real Estate Holdings Pte. Ltd. ( PREHPL ) has today granted Perennial China Retail Pte. Ltd. ( PCRPL ), a wholly-owned subsidiary of PCRT: (i) (ii) an option ( First Option ) to invest in a 50.0% interest in the two plots of land (the Land Plots ) with development gross floor area ( GFA ) of approximately 850,000 square metres ( sq m ) in respect of the Xi an North High Speed Railway ( HSR ) Integrated Development 1 (the Xi an HSR Integrated Development ), which is located adjacent to the Xi an North HSR Station and in respect of which PREHPL has been jointly awarded the tender (please refer to paragraph 3 below for further details of the tender and the Land Plots); and if PCRPL does not exercise the abovementioned option, an option ( Second Option ) to 2 invest in (a) a 50.0% interest in the Block Retail (as defined below) component of the Xi an HSR Integrated Development of no less than 100,000 sq m of GFA or (b) a 50.0% interest in an integrated mixed-use development 2 in which the Block Retail 2 forms the predominant component, to be exercised within one year after the asset plan of the Xi an HSR Integrated Development is finalised and provided to PCRPL, (collectively, the PREHPL Option ). 1 Previously called the Xi an Longemont High-Speed Railway Commercial Development. 2 Subject to final relevant PRC government approvals. The issue managers for the initial public offering and listing of Perennial China Retail Trust were DBS Bank Ltd., Goldman Sachs (Singapore) Pte. Standard Chartered Securities (Singapore) Pte. Limited and Citigroup Global Markets Singapore Pte. Ltd. The issue managers for the initial public offering assume no responsibility for the contents of this announcement.

2 2. Original Summit Option to Purchase Agreement At the initial public offering ( IPO ) of PCRT, Shanghai Summit (Group), a strategic partner of PCRT, and Shanghai Summit Real Estate Development Co., Ltd. ( Shanghai Summit ), had entered into a joint venture agreement with the Xi an Infrastructure Investment Group ( Xi an Investment Group or 西安城投集团 ), a People s Republic of China ( PRC ) State-owned Enterprise, to jointly develop 700,000 sq m of GFA of the Xi an HSR Integrated Development. Shanghai Summit had then intended to, jointly with Xi an Investment Group, acquire an additional 1.3 million sq m of GFA of the Xi an HSR Integrated Development, so as to develop a total GFA of 2.0 million sq m. Shanghai Summit had on 21 March 2011 granted an option to purchase (the Summit Option ) to Perennial Real Estate Pte. Ltd. ( PREPL ) and PCRPL to acquire a 50.0% interest in at least 1.0 million sq m of GFA of the commercial component of the Xi an HSR Integrated Development, within a year from which Shanghai Summit acquires the rights to develop a total of 2.0 million sq m of GFA. The above proposed investment structure and the Summit Option were described in the prospectus (the Prospectus ) issued by the Trustee-Manager in relation to PCRT dated 27 May Shanghai Summit has informed the Trustee-Manager that the proposed ownership structure contemplated at IPO, which was based on an ownership of 50.0%-50.0% respectively between Shanghai Summit and the Xi an Investment Group, for the acquisition of up to 2.0 million sq m of GFA of the Xi an HSR Integrated Development would require conformity and compliance with extensive governmental administrative processes, including procurement and approval matters. Shanghai Summit believes that conformity and compliance with those extensive processes would adversely affect their execution of development works and operational efficiency. They therefore no longer intend to proceed with the acquisition of up to 2.0 million sq m of GFA as originally contemplated. As the Summit Option is conditional upon Shanghai Summit acquiring the rights to develop a total of 2.0 million sq m of GFA of the Xi an HSR Integrated Development, Shanghai Summit s decision means that the Summit Option would no longer be exercisable by PCRPL. 3. Tender of Xi an HSR Integrated Development Land Plots The Land Plots in respect of the Xi an HSR Integrated Development were made available by the relevant PRC government authorities for public tender. In view of the decision of Shanghai Summit not to proceed with the acquisition of up to 2.0 million sq m of GFA, PREHPL, which is now the sponsor 3 of PCRT, decided to participate in this government land tender to preserve PCRT s access to the Xi an HSR Integrated Development as a pipeline asset as described in the Prospectus. PREHPL, Shanghai Summit and Xi an Investment Group have been jointly awarded the tender in respect of the Land Plots, with PREHPL owning a 51.0% stake and the remainder held by Shanghai Summit and Xi an Investment Group. The Land Plots, with development GFA amounting to approximately 850,000 sq m, are expected to comprise a large-scale hotel, apartments, strata retail units as well as non-strata subdivided areas (the Block Retail 2 ). 3 Earlier on 7 November 2012, the Trustee-Manager announced that, inter alia, as part of the establishment of PREHPL announced on 18 April 2012, the transfer of a 49.0% interest in PREPL, the sponsor of PCRT at IPO, to PREHPL has been completed. Following the transfer, Mr Kuok Khoon Hong (a Non-Executive Director of the Trustee-Manager) and Mr Pua Seck Guan (an Executive Director and Chief Executive Officer of the Trustee- Manager) now hold 54.5% and 20.0% of PREHPL respectively. As at 7 November 2012, Mr Kuok and Mr Pua hold a total aggregate interest (direct and deemed) of % and % in PCRT respectively. 2

3 4. New Option to Purchase from PREHPL To give effect to the commercial intent under the Summit Option, PREHPL has therefore in good faith granted to PCRPL the PREHPL Option described in paragraph 1 above. The key transaction terms of the PREHPL Option are substantially the same as the Summit Option, including the agreed property price of between RMB8,000 and RMB10,000 per sq m of GFA on a completed basis ( Pricing ) and with similar payment milestones as set out below ( Payment Schedule ). Payment Schedule 5.0% of the 10.0% of the 40.0% of the 40.0% of the 5.0% of the Payable upon the signing of the relevant definitive legal agreements. Payable upon the receipt of the Four Permits 4. Payable upon the topping-out of the Block Retail 2. Payable upon the earlier of (i) the commencement of operations of the Block Retail 2 and (ii) receipt of the construction completion certificate ( 竣工验收备案表 ). Payable upon the receipt of the relevant building title deed as well as other relevant governmental approvals 5 in respect of the Block Retail 2. The management and the Board of Directors of the Trustee-Manager have considered the First Option and have decided not to exercise it for the following reasons: 1. This option will require PCRT to immediately raise a significant amount of capital. Having regard to PCRT s current investment portfolio and borrowings, which include its recent investments in Perennial Dongzhan Mall in Chengdu and the Tongzhou Integrated Development in Beijing, it is financially prudent for PCRT to decline this option. 2. As the asset plan is yet to be finalised, there is no clarity or certainty on the composition of each asset class, including the scale and proportion of the retail components. The overall scheme is also likely to include a large-scale hotel which does not fall within PCRT s investment mandate. The management and the Board of Directors of the Trustee-Manager have accepted the Second Option with the intention to review the project viability and to consider its exercise in due time, after the asset plan for the Land Plots is finalised. This is in the interests of PCRT as it gives greater certainty to the quality and scale of the asset, and allows PCRT sufficient time to ascertain the financial viability of the investment, as well as planning and managing PCRT s financial resources accordingly. 4 Refers to the four approvals from the PRC governmental authorities, being (i) the land use right certificate ( 土地使用证 ), (ii) the construction land planning permit ( 建设用地规划许可证 ), (iii) the construction project planning permit ( 建设工程规划许可证 ) and (iv) the construction permit ( 建筑工程施工许可证 ). 5 Other than the building title deed which is the main governmental approval, the other governmental approvals, if required, are general administrative in nature. 3

4 To fulfil the condition that PCRPL will be offered at least 1.0 million sq m of GFA in the Xi an HSR Integrated Development under the Summit Option, PREHPL has also committed to PCRPL that in the event that PREHPL subsequently acquires at least a 50.0% interest in any other land plots in respect of the Xi an HSR Integrated Development apart from the Land Plots ( Additional Land Plots ), PREHPL will offer to PCRPL: (i) a 50.0% interest in the Additional Land Plots with development GFA of at least 150,000 sq m, if the Additional Land Plots has development GFA exceeding 150,000 sq m; or (ii) in the case where the development GFA of the Additional Land Plots is below 150,000 sq m, the entire Additional Land Plots, in both cases on the same Pricing and Payment Schedule as the PREHPL Option, within a year of PREHPL acquiring the rights to the Additional Land Plots. In the event that PREHPL acquires at least 50.0% interest in the Additional Land Plots but fails to offer PCRPL an option on the Additional Land Plots, PREHPL will compensate PCRPL RMB15.0 million, which is pro-rated from the original penalty of RMB100.0 million under the Summit Option. By Order of the Board Perennial China Retail Trust Management Pte. Ltd. (as trustee-manager of Perennial China Retail Trust) (Registration Number: Z) Tan Bee Lian Company Secretary 14 November 2012 Important Notice The value of units ( Units ) in PCRT and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, PCRT, the Trustee-Manager, or any of its affiliates. The past performance of PCRT is not indicative of the future performance of PCRT. Certain statements in this announcement may constitute forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding PCRT s present and future business, and its strategies and the environment in which PCRT s will operate in the future. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of PCRT, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements speak only as at the date of this announcement. PCRT expressly disclaims any obligation or undertaking to release publicly any updates of or revisions to any forwardlooking statement contained herein to reflect any change in PCRT s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, subject to compliance with all applicable laws and regulations and/or the rules of the SGX-ST and/or any other relevant regulatory or supervisory body or agency. 4

5 An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. Investors will have no right to request that the Trustee-Manager redeem or purchase the Units while the Units are listed. It is intended that holders of the Units may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. The past performance of PCRT is not necessarily indicative of the future performance of PCRT. This announcement is for information only and does not constitute an offer of securities for sale in the United States or elsewhere. The securities of PCRT have not been and will not be registered under the United States Securities Act of 1933, as amended (the Securities Act ), and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements under the Securities Act. There will be no public offering of the securities in the United States. About Perennial China Retail Trust ( PCRT is Singapore s first pure-play People s Republic of China ( PRC ) retail development trust. Listed on the Main Board of the Singapore Exchange Securities Trading Limited ( SGX-ST ) on 9 June 2011, PCRT has a market capitalisation of approximately S$563.0 million as at 6 November 2012 and an asset size of approximately S$1.2 billion (approximately RMB6.2 billion valued on an as if complete and fully leased basis) as at 31 December PCRT s existing portfolio comprises a 50.0% interest in each of Shenyang Red Star Macalline Furniture Mall, Shenyang Longemont Shopping Mall and the Shenyang Longemont Offices, a 100.0% registrable interest in Perennial Jihua Mall, Foshan, Guangdong, the right to acquire a 100.0% interest in Perennial Qingyang Mall, Chengdu, Sichuan, the right to acquire a 80.0% interest in Perennial Dongzhan Mall, Chengdu, Sichuan and a 10.0% interest in the predominantly-retail Beijing Tongzhou Integrated Development. PCRT has secured a strong pipeline of projects which include the option to invest in the Xi an High Speed Railway Integrated Development, which is directly connected to the Xi an North High Speed Railway Station, and a right of first refusal to invest in a similar high speed railway development site in Changsha. PCRT aims to provide its Unitholders with sustainable total returns from the steady growth of PCRT s net asset value per unit and regular distributions from stabilised income-producing assets. PCRT is sponsored by Perennial Real Estate Holdings Pte. Ltd. and is managed by Perennial China Retail Trust Management Pte. Ltd. 5