Shanghai Centrepoint Jingan Realty Co Ltd

Centrepoint Properties Ltd (CPL) is pleased to announce that CPL (China) Pte Ltd, a wholly-owned subsidiary, has today signed the Land Use Right Contract with Shanghai Municipal Land Administration Bureau for a residential site in Jing An District in Shanghai, China. The total cost of the land, inclusive of resettlement and public utilities provisions, is RMB 252 million (S$55.6m).

CPL will take up a 95% equity stake in the joint venture development company, Shanghai Centrepoint Jingan Realty Co Ltd, which will have a registered capital of US$20 million (S$36.6m). Shanghai Jin Di City Construction & Development Co Ltd, a company owned by the Jing An District Government holds the remaining 5% equity.

The project marks CPL's entry into property development in Shanghai, and will tap on CPL's vast experience in developments adjacent to MRT stations as the 13,843 square metre site (with a plot ratio of 5 and a tenure of 70 years) is located on top of the existing First Shimen Lu MRT Station in Jing An District.

It also presents an opportunity for CPL to establish its quality Centrepoint Homes brand in Shanghai.

Said Dr Han Cheng Fong, Deputy Chairman & CEO of CPL, "Centrepoint's entry into China is well-timed to respond to a strong up trend in property ownership in Shanghai. Strong economic growth in Shanghai over the past ten years has given rise to growing disposable incomes which are being invested in residential properties. Furthermore, the Chinese Government is encouraging home ownership."

The First Shimen Lu development comprises about 480 units of apartments and shops. Fronting Wujiang Road, a pedestrian street just south of Nanjing West Road, the main thoroughfare of Shanghai, it is easily accessible and close to shops and businesses.

The transaction will be funded by borrowings and it is not expected to affect the group's net tangible asset or earnings per share in the current financial year.

No director or substantial shareholder of CPL has a direct or indirect interest in the transaction.

Yours sincerely
CENTREPOINT PROPERTIES LTD
I A MacLean
Director/Company Secretary