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Mapletree India China Fund to Acquire Beijing Gateway Plaza for RMB2.9 Billion
11 Feb 2010

Beijing Gateway Plaza

Singapore – Mapletree Investments Pte Ltd (“Mapletree”) is pleased to announce that its US$1.16 billion private real estate fund, Mapletree India China Fund (“MIC Fund”) has entered into a binding agreement with Hong Kong-listed REIT, RREEF China Commercial Trust (“RREEF CCT”) to acquire 100% of the special purpose vehicle holding legal and beneficial title to the property Beijing Gateway Plaza. The acquisition price is based on a value ascribed to the property of RMB2.9 billion. This acquisition is subject to approval by unitholders of RREEF CCT.

Mr Hiew Yoon Khong, CEO of Mapletree said, “We are delighted to add this landmark building in Beijing to our portfolio. Beijing Gateway Plaza is an attractive investment for us. It is a premium Grade A office building located in Chaoyang District, within Beijing’s Lufthansa area, which is one of the four established business districts within Beijing. The building is one of the best located and designed buildings in Beijing and it has a diverse tenant base that includes major multinational corporations and domestic enterprises.”

He added, “China is an important investment market for us and with Beijing being the capital city of China; we are confident that the demand for good quality office space will continue to grow. There is limited new supply of Class A office space over the next few years and we expect occupancy and rental rates to trend upwards.”

This acquisition marks MIC Fund’s fourth investment in China, and its second acquisition of a prime office building in Beijing. The first was the former Motorola Tower (now renamed Mapletree Tower), also located in Chaoyang District, at the intersection of Jianguo Road and East Third Ring Road. MIC Fund’s other investments in China include a mixed-use retail & residential development in Xi’an called Future City and another mixed-use business and lifestyle development called Nanhai Business City in Foshan. Together with this latest acquisition, the total combined value of MIC Fund’s portfolio is now about US$1 billion.

MORE ABOUT THE PROPERTY

Completed in August 2005, Beijing Gateway Plaza is a premium Grade A office building with a total above-ground gross floor area of approximately 102,735 sqm. It comprises two 25-storey office towers connected by a three-storey retail podium and 3 levels of car-park below ground. It features large floor plates ranging from about 1,500 to 2,300 sqm, offering clients premium office spaces.

This iconic building is strategically located at the corner of East Third Ring Road and Airport Expressway and is sited within the prime location of the Third Embassy business district in Beijing. It is well served by road and rail infrastructure, offering tenants convenient direct highway access to Beijing International Airport and rail connectivity via the nearby subway and Airport Express lines. This location advantage makes the building a highly sought after business address for top tier multi-national firms and domestic enterprises.

Gateway Plaza has a strong tenant base of multinational corporations and domestic enterprises.

ABOUT MAPLETREE INDIA CHINA FUND

Mapletree India China Fund (MIC Fund) is a dual-country total return fund which aims to capitalise on the huge growth potential of the economy and population in China and India. It was specifically set up to invest in growing real estate opportunities in these two countries and focuses largely on the investment and development of office, retail and residential real estate within these two mega emerging markets.

The fund raised a total of US$1.16 billion in committed capital. The fund’s first project in China is Future City, an integrated residential and retail development in Beilin District, Xi'an with a total development value of about US$148 million. Its second investment is Mapletree Tower, an existing office tower in Beijing's Central Business District with an investment value of about US$127 million. The fund also invested in Nanhai Business City, an integrated mixed-use development in Foshan, comprising retail, residential, office and hotel components, valued at US$342 million. With the latest acquisition of Beijing Gateway Plaza, the total combined value of MIC Fund’s portfolio is now about US$1 billion.

ABOUT MAPLETREE INVESTMENTS PTE LTD

Mapletree Investments Pte Ltd (Mapletree) is a leading Asia-focused real estate capital management company headquartered in Singapore. It owns and manages real estate assets of about S$12 billion comprising office, logistics, business park, industrial and retail/lifestyle properties across Asia. To support its regional business, Mapletree has established an extensive network and presence in Singapore, China, Hong Kong, India, Japan, Malaysia and Vietnam.

As a leading Asian real estate capital management company, Mapletree is focused on investing in Asian markets and real estate sectors with good growth potential. Its business philosophy is to shape new ways to deliver value to its stakeholders from real estate and related investments. It aims to be a strategic real estate partner providing real estate solutions, including capital management and quality property-related services and products, to its business partners.

Mapletree has extensive skills and experience in developing mixed-use integrated developments, developing and managing business park/industrial and logistics properties and in structuring and managing REITs. It is the Sponsor for Mapletree Logistics Trust, the first Asia-focused logistics real estate investment trust in Singapore as well as for Mapletree Industrial Fund – a pan-Asia private industrial real estate fund, Mapletree Industrial Trust – a Singapore-focused private industrial real estate trust and Mapletree India China Fund – a total-return focused fund which invests in commercial, residential or mixed-use integrated developments in India and China.

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