Keppel Land to divest its one-third interest in Marina Bay Financial Centre Towers 1 & 2 and Marina Bay Link Mall

Keppel Land Limited (Keppel Land) has entered into a conditional share purchase agreement with K-REIT Asia for the divestment of its one-third interest in Phase One of Marina Bay Financial Centre (MBFC Phase One) at an agreed value of S$1,426.8 million (inclusive of rental support). The divestment will yield a net gain of about S$321 million.

At the same time, as part of the asset swap, Keppel Land has signed a conditional sale and purchase agreement with K-REIT Asia for the purchase of two properties, Keppel Towers and GE Tower (KTGE), at an agreed value of S$573.0 million, for redevelopment into premium residences for city living. With a plot ratio of 5.6, the high-rise residential development will include commercial spaces on the first level. With a total gross floor area of 481,800 sf, the development will yield approximately 620 residences.

MBFC Phase One comprises two office towers, Marina Bay Financial Centre Towers 1 & 2, with a total net lettable area (NLA) of about 1.65 million sf, Marina Bay Link Mall with a retail NLA of about 94,500 sf and 684 carpark spaces. Fully committed, major tenants at MBFC Towers 1 & 2 include Standard Chartered Bank, Barclays Capital, BHP Billiton, Nomura, Macquarie, American Express and Prudential.

Mr Kevin Wong, Group CEO of Keppel Land said, "The proposed asset swap will enhance value for both shareholders of Keppel Land and unitholders of K-REIT Asia.

"For Keppel Land, the acquisition presents the opportunity to increase our residential pipeline with the potential redevelopment of Keppel Towers and GE Tower. The rapid transformation of the business district into an area for live-work-play and future development plans for the Tanjong Pagar precinct present good investment opportunities into the future.

"At the same time, through Keppel Land's interest in K-REIT Asia, the world-class MBFC development will continue to augment our sterling portfolio of prime commercial properties which have become the preferred business addresses of multi-national corporations and major financial institutions."

Keppel Land will divest its one-third interest in BFC Development Pte. Ltd., the developer and owner of MBFC Phase One, whose other shareholders include subsidiaries of Cheung Kong (Holdings) Limited/Hutchison Whampoa Limited and Hongkong Land Holdings Limited.

The acquisition price for KTGE payable to K-REIT Asia will be set-off against the sale proceeds for MBFC Phase One.

The net cash proceeds of about S$812.0 million will provide Keppel Land additional capital to invest in more projects that could generate higher returns for the company.

The agreements for both the divestment and acquisition were negotiated at arm's length on a willing-buyer willing-seller basis. The one-third interest in MBFC Phase One property has, as at 5 October 2010, on an open market value basis and inclusive of a rental support of up to S$29 million, been valued at S$1,420.5 million. Similarly, KTGE's open market value as at 5 October 2010, based on residential use, has been appraised at S$576.0 million.

The bundled transaction is subject to the approval of the minority shareholders of Keppel Land and minority unitholders of K-REIT Asia at the respective extraordinary general meetings. Upon approval, the transaction is expected to be completed no later than 31 December 2010.

About Marina Bay Financial Centre

Jointly developed by Keppel Land Limited, Cheung Kong (Holdings) Limited/Hutchison Whampoa Limited and Hongkong Land Holdings Limited, Marina Bay Financial Centre (MBFC) is developed in two phases. With a total gross floor area of 4.7 million sf, MBFC comprises prime commercial spaces, high-end residences and a subterranean retail mall.

At 33 storeys high, MBFC Tower 1 comprises about 0.62 million sf NLA. The 50-storey MBFC Tower 2 offers about 1.03 million sf NLA. Both MBFC Towers 1 & 2 are fully committed to international financial institutions and leading corporations such as American Express, Bank Pictet, Barclays Capital, BHP Billiton, ICAP, Macquarie, Murex, Nomura, OCBC Retail Banking, Prudential, Servcorp, Standard Chartered Bank and Wellington International Management Company.

Marina Bay Link Mall which comprises about 94,500 sf NLA will host a distinct blend of lifestyle brands, F&B outlets and convenience services for those who work and live at Marina Bay. The mall is currently about 87% pre-committed and retailers are expected to commence business at the end of 2010.

About Keppel Towers and GE Tower

Keppel Towers and GE Tower are a pair of 27- and 13-storey office buildings located along Hoe Chiang Road and Tanjong Pagar Road, in close proximity to the Tanjong Pagar MRT station. Completed in 1991 and 1993 respectively, both buildings are sited on freehold land within Singapore's Central Business District.

In recent years, the Tanjong Pagar area has been rejuvenated by an increase in the number of private residential developments and has evolved to become a preferred address for urbanites working in the vicinity.

Outline Planning Permission (OPP) has been granted by the relevant authorities for the erection of a high-rise residential development with commercial use on the first level and a plot ratio of 5.6 at the site of Keppel Towers and GE Tower.

For more information, please contact:

Media Relations
Ms Teri Liew
Assistant General Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: 6413 6425
Email: teri.liew@kepcorp.com

Investor Relations
Ms Serena Toh
Deputy General Manager
Investor Relations & Research
Keppel Land Limited
Tel: 6433 7546
Email: stoh@kepland.com.sg

^{IMPORTANT NOTICE}

^{This release may contain statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. You are cautioned not to place undue reliance on such statements, which are based on the current views of Management on future developments and events.}

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