KREIT – SGX

ANNOUNCEMENT OF RIGHTS ISSUE PRICE

K-REIT Asia Management Limited, as manager of K-REIT Asia (the “Manager”), wishes to announce that the issue price per unit in K-REIT Asia (“Rights Unit”) under the Rights Issue described in the circular to unitholders of K-REIT Asia (“Unitholders”) dated 13 March 2008 (“Unitholders’ Circular”) will be $1.39 per Rights Unit (the “Rights Issue Price”). The Rights Issue Price is at a discount of 8.3% to the Prevailing Market Price described in the Unitholders’ Circular, being the volume-weighted average traded price for a unit in K-REIT Asia (“Unit”) for all trades on Singapore Exchange Securities Trading Limited (the “SGX-ST”) in the ordinary course of trading on the SGX-ST for a period of three business days immediately preceding 28 March 2008.

Based on the total of number of Rights Units of 396,925,192 as stated in the announcement dated 24 March 2008, the gross proceeds pursuant to the Rights Issue will be approximately $551.7 million. As a result of applying the net proceeds of the Rights Issue (after deducting estimated costs and expenses associated with the Rights Issue) towards partially refinancing the Bridging Loan as defined in the Unitholders’ Circular, K-REIT Asia’s aggregate leverage will be 27.7% upon the completion of the Rights Issue.

Source : SGX