AllCo – SGX

SALE OF MANAGER OF ALLCO COMMERCIAL REAL ESTATE INVESTMENT TRUST

UPDATE – INCOME SUPPORT ARRANGEMENTS IN RESPECT OF CENTRAL PARK, PERTH

ASSET VALUATIONS

Sale of Manager of Allco Commercial Real Estate Investment Trust

Singapore, 8 July 2008 – Allco (Singapore) Limited (“Manager” or “Allco Singapore”), the manager of Allco Commercial Real Estate Investment Trust (“Allco REIT”) announces that Allco Finance Group Limited and two of its indirect wholly-owned subsidiaries, Allco Singapore Holdings Limited and Allco Singapore Investments Pte. Ltd. (“Allco Group”), have entered into a Sale and Purchase Agreement dated 8 July 2008 (“Agreement”) with Frasers Centrepoint Limited (“FCL”).

Pursuant to the terms of the Agreement, Allco Group has agreed to sell to FCL for a total consideration of S$180 million:

(a) all of the issued ordinary and preference shares in Allco Singapore (for a consideration of S$75,709,405.23);

(b) its approximately 17.7% interest in Allco REIT (125,651,319 Allco REIT units (“Units”) for a consideration of S$104,290,594.77 or S$0.83 per Unit),

(the “Sale”).

The price of S$0.83 per Unit represents:

(1) a discount of 42.3% to the unaudited net asset value of Allco REIT per Unit of S$1.44 as at 31 March 2008; and

(2) a premium of 16.9% to the closing price per Unit of S$0.71 traded on the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 7 July 2008, the last trading day immediately before this announcement.

The effect of the Sale is that FCL, whose ultimate holding company is SGX-listed Fraser and Neave, Limited, will, on completion, control the manager of Allco REIT.

Subject to the matters referred to below, completion of the Sale is expected to take place by 6 August 2008. A further announcement will be made upon completion of the Sale.

Completion of the Sale is subject to certain conditions precedent being fulfilled or waived on or prior to 30 September 2008 (or such later date as FCL and Allco Group may agree), including:

(a) the Monetary Authority of Singapore not raising an objection to FCL acquiring Allco Singapore;

(b) receipt of Australian Foreign Investment Review Board approval for (or no-objection to) the Sale;

(c) waiver of certain covenants under Allco REIT’s financial indebtedness to Commonwealth Bank of Australia;

(d) no breach of certain representations, warranties and undertakings given by Allco Group under the Agreement; and

(e) no occurrence of certain events which have a material adverse effect on Allco REIT or Allco Singapore and their respective subsidiaries.

Update – Income Support Arrangements in respect of Central Park, Perth

As announced on 6 May 2008, a deed of guarantee and indemnity (“Guarantee”) was entered into on 5 May 2008 by Allco Finance Group Limited in favour of APF Management Pty Limited as trustee of Central Park Landholding Trust, under which Allco Finance Group Limited agreed to guarantee payment of the income support obligations arising under an Income Support Deed referred to in an announcement on 9 March 2008.

The liability of Allco Finance Group Limited to make payments under the Guarantee will terminate when it ceases to hold a shareholding interest of at least 50% in the manager of Allco REIT. This will occur on completion of the Sale. Following that date, any recovery of income support in respect of Central Park, Perth, will be restricted to what can be recovered in the administration of Allco Principals Investments Pty Limited (Receiver and Manager appointed) (Administrator appointed).

Asset Valuations

Cosmo Plaza, Osaka
An independent valuation of Cosmo Plaza, Osaka, has been completed1. The property has been valued at JPY 5.998 billion2, which is 8.7% below the previous valuation of JPY6.57 billion as at 30 May 2007.

The valuation was conducted by K. K. Halifax Associates.

Centrelink Headquarters, Canberra
An independent valuation of Centrelink Headquarters, Canberra, has been completed3. The property has been valued at A$187.5 million4, which is 13.8% below the average of the previous valuations of A$217.5 million obtained in May 2007.

The valuation was conducted by Colliers International Consultancy and Valuation Pty Limited.

Source : SGX