Keppel Land Ltd : Keppel Land China acquires prime commercial site in Beijing

19-January-2012

Keppel Land China acquires prime commercial site in Beijing

Keppel Land China Limited (Keppel Land China) wishes to announce that its wholly-owned subsidiary, Triumph Jubilee Limited (Triumph Jubilee), has completed the transactions under (1) a sale and purchase agreement with Mdm Chang Lee Ngoh (the Vendor) in relation to Aether Pte. Ltd (APL) (the Acquisition) and (2) a subscription agreement with, inter alia, APL for Triumph Jubilee to subscribe for 999,999 ordinary shares in APL (APL Subscription). Keppel Land China is a wholly-owned subsidiary of Keppel Land Limited (Keppel Land).

APL is a company incorporated in Singapore that holds a 51% shareholding interest in Aether Limited (AL), a company incorporated in the Hong Kong S.A.R. AL is an investment holding company that has interest in a property development company involved in a commercial project in Beijing, the People's Republic of China.

The total cash consideration for the sale and purchase agreement was arrived at on a willing-seller and willing buyer-basis, taking into account the value of the assets and liabilities of APL and its subsidiary companies. Under the sale and purchase agreement, Triumph Jubilee will pay US$50,679,274.70 (approximately S$62,327,748.12) to the Vendor, and will repay, on behalf of the Vendor, a debt of US$85,567,321.06 (approximately S$105,059,001.32) owed to AL. Separately, the cash consideration for the APL Subscription is S$999,999.

Following the completion of the Acquisition and the APL Subscription, APL has become a wholly-owned subsidiary of Keppel Land, and Keppel Land holds an indirect 51% shareholding interest in AL through APL.

In connection with the Acquisition and APL Subscription, APL has also entered into a shareholders' agreement (SHA) with the other shareholders of AL to regulate their respective rights and obligations in relation to AL. Pursuant to the terms of the SHA, APL has subscribed for 16,651,500 new ordinary shares in AL for a consideration amount of HKD166,515,000.00 (approximately S$26,227,332.98) (AL Subscription). APL's 51% shareholding in AL will remain unchanged subsequent to the AL Subscription.

The commercial project sits on an approximately 2.6-ha site in the heart of Beijing's Central Business District (CBD). With a Gross Floor Area (GFA) of about 100,000 sm, the site has been planned for the development of three office blocks and retail premises. The development is expected to be completed by the end of 2014.

The site is located in the Chaoyang district between the eastern second and third ring roads, and is within a stone's throw away from well-known landmarks such as the China World Trade Centre and the China Central Television (CCTV) Tower. As the preferred business location for many multinational corporations and state-owned enterprises, the CBD around the eastern third ring road in the Chaoyang district is the largest business district in Beijing.

"Keppel Land China continues to pursue opportunities to build up a strong portfolio in China, whether residential or commercial. This is our first commercial development in China's capital. This site is in a prime location with high potential, and will draw Chinese as well as multinational corporations who will value its high accessibility," said Mr Ang Wee Gee, Executive Vice Chairman of Keppel Land China.

The site is accessible via the East-West Chang' An Avenue and third ring road as well as two subway lines. Beijing's Capital Airport is 30-minute away via the airport expressways or airport subway line.

The project is the Keppel Land's second property project in Beijing following the sell-out success of residential development, The Seasons. The 1,859-unit condominium development is located in the heart of Wangjing Estate, the largest planned township in Beijing.

Keppel Land China started building up its commercial projects with Seasons City, a mixed use development in the Tianjin Eco-City which comprises three office towers, retail premises and serviced apartments with a total GFA of about 162,000 sqm.

The Acquisition, the APL Subscription and the AL Subscription will be financed with internal resources, and are not expected to have a material financial impact on the consolidated earnings per share and net tangible assets per share of the Keppel Land Group for the financial year ending 31 December 2012.

None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the Acquisition, the APL Subscription and the AL Subscription.

- End -

For more information, please contact:

Media Relations Grace Chia (Ms) Senior Manager Group Corporate Communications Keppel Corporation Tel: [phone] Email: [e-mail]

Investor Relations Serena Toh (Ms) Deputy General Manager Investor Relations & Research Keppel Land Limited Tel: [phone] Email: [e-mail]

About Keppel Land and Keppel Land China

Keppel Land Limited (Keppel Land), the property arm of the Keppel Group, has a strategic focus on two core businesses of property development and property fund management.

The Company is one of the largest property companies by total assets on the Singapore Exchange.

One of Asia's premier property developers, Keppel Land is recognised for its sterling portfolio of quality award-winning residential developments and investment-grade commercial properties, as well as high standards of corporate governance and transparency.

Keppel Land is also an investor, as well as developer cum project manager for the Keppel Group development, in the landmark Singapore-China government project, the Sino-Singapore Tianjin Eco-City.

Strengthening focus on China, wholly-owned subsidiary Keppel Land China was established to own and operate all of Keppel Land's properties in the country.

Building on the Keppel Group's strong network and track record in 20 cities across China, Keppel Land China has a pipeline of over 40,000 homes in township, residential and waterfront developments.

Media Relations
Grace Chia (Ms)
Senior Manager
Group Corporate Communications
Keppel Corporation
Tel: [phone]
Email: [e-mail] Investor Relations
Serena Toh (Ms)
Deputy General Manager
Investor Relations & Research
Keppel Land Limited
Tel: [phone]
Email: [e-mail]