MI-REIT – SGX

MACARTHURCOOK INDUSTRIAL REIT ACQUIRES CHANGI PROPERTY FOR S$20.8 MILLION

– Increases FY2008 DPU by 0.23 cents to 7.64 cents per unit and FY2009 DPU by 0.22 cents to 7.81 cents per unit

Singapore, 24 October 2007 – MacarthurCook Investment Managers (Asia) Limited
(“MCKIM Asia”), the Manager of MacarthurCook Industrial REIT ( “MI-REIT”), is pleased to announce that MI-REIT, through its Trustee, HSBC Institutional Trust Services (Singapore) Limited ( the “Trustee”), has signed a conditional call option agreement (the “Agreement”) to acquire a logistics and warehouse building from Prologis Singapore Pte Ltd ( “Prologis” or the “Vendor” ).

The property at 11 Changi South Street 3 (the “Property” ) will be sub-leased to its current tenant, Builders Shop Pte Ltd ( “Builders”) for the remainder of the existing 10 year lease term, which commenced on 16 December 2004. Builders, a division of SGX-listed Shining Corporation Limited, is primarily engaged in the supply of quality building materials. The acquisition is expected to be completed by 4Q FY2007.

At an initial yield of 7.23%, the acquisition of the Property is accretive to MI-REIT’s distribution per unit (“DPU”). The pro forma financial effect of the acquisition on DPU is:

– an additional 0.23¹ Singapore cents per unit, representing an increase of 3.10% from the forecasted FY2008 DPU of 7.41 Singapore cents per unit² for the financial year ended 31 March 2008 (“FY2008”); and

– an additional 0.22¹ Singapore cents per unit, representing an increase of 2.90% from the forecasted DPU of 7.59 Singapore cents per unit² for the financial year ended 31 March 2009 (“FY2009”).

Rationale for the acquisition

Mr Chris Calvert, CEO of the Manager, said: “We are pleased with the acquisition of 11 Changi South 3, which is a strategic operational fit for MI-REIT’s industrial property portfolio.

The acquisition expands our presence in Singapore’s logistics and warehousing property sector and brings our total investments to over S$500.9 million³ in 16 properties.”

The acquisition increases MI-REIT’s exposure to the tightly held Changi industrial precinct and the average lease expiry profile from 6.3 to 6.4 years.

Other benefits of the acquisition to MI-REIT’s portfolio include: