SUNTEC REIT ACQUIRES STATE LAND ALONG PENANG ROAD

Singapore, 30 July 2007 – ARA Trust Management (Suntec) Limited (“ARA Suntec”), the
Manager of Suntec Real Estate Investment Trust (“Suntec REIT”), is pleased to announce the acquisition from the State today, a strip of land of about 1,261 square metres (13,572 square feet) along Penang Road, at a land premium of S$14.5 million for amalgamation with Park Mall to create an additional floor area of 5,825 square metres (62,704 square feet) for the property.

The total acquisition cost of the land amounted to S$15.9 million. With the additional floor area, the total permissible gross floor area for Park Mall will increase to 41,492 square metres (446,622 square feet).

Mr Yeo See Kiat, Chief Executive Officer of ARA Suntec, said, “The acquisition of the
subject land and the creation of the additional floor area would enable us to implement a more comprehensive asset enhancement program for Park Mall, which would significantly add value to the REIT and our unitholders. Details of the asset enhancement program will be unveiled in due course.”

Source : SGX

SUNTEC REIT TO ACQUIRE ONE-THIRD STAKE IN ONE RAFFLES QUAY

ASSETS UNDER MANAGEMENT INCREASES TO S$4.81 BILLION, OFFICE PORTFOLIO TO 1.82 MILLION SQUARE FEET

Singapore, 30 July 2007 – ARA Trust Management (Suntec) Limited (“ARA Suntec”), Manager of Suntec Real Estate Investment Trust (“Suntec REIT”), is pleased to announce that HSBC Institutional Trust Services (Singapore) Limited, as trustee of Suntec REIT, has entered into a conditional share purchase agreement with Cavell Limited (the “Vendor”) for the acquisition by Suntec REIT of a onethird interest in One Raffles Quay through the acquisition of the entire issued share capital of Comina Investment Limited (“Comina”). Comina is a special purpose holding company holding one-third of the issued share capital of One Raffles Quay Pte Ltd (“ORQPL”), the developer and owner of the Property.

The proposed one-third stake in One Raffles Quay is at a purchase value of S$941.5 million. The acquisition is expected to be yield accretive for Unitholders, taking into account the rental top up payments of S$103.48 million (inclusive of GST) over 54 months to be provided by the Vendor. It will also provide further geographical and income diversification for Suntec REIT. The Manager is currently reviewing various financing options for the Acquisition, including without limitation the issuance of units, loans, convertible bonds or other debt securities, or any combination of the aforesaid.

The acquisition is targeted for completion by the first quarter of FY2008. Upon completion, Suntec REIT’s total assets under management would increase to S$4.81 billion.

Mr. Yeo See Kiat, Chief Executive Officer of ARA Suntec, said, “This is a rare opportunity to own a key development such as One Raffles Quay, which offers excellent growth potential. This is in line with our strategy to focus on the exciting Marina Bay growth corridor in acquiring quality assets that would provide stable income streams and significantly enhance the income diversification of the REIT.”

“Given the increased portfolio exposure to the rising office market, we are pleased that this acquisition would allow us to deliver more value to our unitholders.”

Iconic development in the heart of Singapore’s upcoming financial hub
One Raffles Quay is a prime landmark office development situated within the new Business Financial Centre in the Marina Bay precinct with direct accessibility to Raffles Place MRT, a key interchange station in the heart of Singapore’s Central Business District.

Well-positioned to capitalise on the future growth of the area, the property offers a strategic fit in Suntec REIT’s existing portfolio of assets and allows greater exposure to Singapore’s rising office market, underpinned by strong demand for quality office space. Upon completion, the enlarged portfolio of 1.82 million square feet of office space will include reputable tenants such as ABN Amro Asia Pacific Pte Ltd, Barclays PLC, Credit Suisse (Singapore) Limited, Deutsche Bank AG, Ernst & Young Services Pte Ltd and other major financial institutions in addition to Suntec REIT’s existing strong tenant base.

Source : SGX

Suntec REIT Distribution Income For 3QFY07 Up 22.9% To S$30.0 million Year-on-Year

Distribution Per Unit Up 11.9% To 2.100 Cents

Singapore, 30 July 2007 – ARA Trust Management (Suntec) Limited (“ARA Suntec”),
Manager of Suntec Real Estate Investment Trust (“Suntec REIT”), is pleased to announce a distribution income of S$30.0 million for the period 1 April 2007 to 30 June 2007 (3QFY07), 22.9% higher than the S$24.4 million reported for the corresponding period in 2006 (3QFY06). The distribution per unit of 2.100 cents for 3QFY07 was 11.9% higher than in 3QFY06.

Commenting on Suntec REIT’s performance, Mr. Yeo See Kiat, Chief Executive Officer of
ARA Suntec, said, “I’m pleased to report that Suntec REIT has achieved a very good growth for the office portfolio in this quarter. In addition, Suntec City Mall has also reached a new high in its committed average passing rent, to S$10.23 p.s.f. per month as at 30 June 2007.”

Office portfolio continues to enjoy strong rental growth.
Suntec REIT’s office portfolio continued to strengthen significantly. Suntec office leases achieved strong renewal and replacement growth rates for the quarter, with leases secured at rates of between S$9.00 – S$10.50 p.s.f. per month. Park Mall office leases also achieved strong renewal and replacement growth in 3QFY07. The committed office occupancy at Suntec City and Park Mall increased to 99.4% and 98.5% respectively as at 30 June 2007.

Committed average passing rent at Suntec City Mall achieved post-IPO high.
The average retail passing rent at Suntec City Mall achieved a high of S$10.23 p.s.f. per month as at 30 June 2007, underpinned by strong renewals and new leases from the asset enhancement projects, namely MY.PLAYGround and the Fashion zone at Galleria. Average passing rents at Park Mall and Chijmes were S$6.49 p.s.f. per month and S$10.38 p.s.f. per month respectively as at 30 June 2007. Suntec REIT’s other income revenue from A&P, pushcarts and kiosks for the nine months ended FY07 grew 14.8% year-on-year compared to the same period in FY06.

Asset enhancement updates. Suntec City Mall’s new Fashion zone at Galleria achieved an average rent of S$24 p.s.f. per month compared with S$12.27 p.s.f. per month previously, with a committed occupancy of 73% to date. This is expected to strengthen further in the next quarter.
Summary of Suntec REIT Results for 3QFY07
For the period 1 April 2007 to 30 June 2007, Suntec REIT recorded gross revenue of S$46.7 million and distribution income of S$30.0 million, which was 6.3% and 22.9% higher than 3QFY06 respectively. The distribution per unit amounted to 2.100 cents, which was 11.9% higher than 3QFY06.

Source : SGX

Selling of Shares by Substantial Shareholder

75.1m shares offered by Lee Shau Kee. Substantial shareholder of Suntec REIT and chairman of Henderson Land Development, Lee Shau Kee has sold his entire stake of 5.27% or 75.1m shares of the trust for S$1.995 to S$2.04 each, generating S$153m. The share sale, managed by Citigroup, resulted in a dip in share price of 4.4% to S$1.97 yesterday. We believe that the sharp drop in share price reflects a shake-up of unitholders’ confidence in the stock.

Catalyst diluted by impact of deferred units. Key driver for the stock will come from rental reversions of its Suntec City and Park Mall offices. However, the impact will be diluted by its 207m deferred units issued at IPO, which will start in Jun 08 through six equal semi-annual payments of S$34.5m each. In addition, we do not foresee any significant asset enhancement programs this year as it is scheduled to complete its Suntec City enhancements by this end of this month. We also believe that any contribution from enhancement of Park Mall will
pale in comparison to Suntec City.

Maintain HOLD, fair value S$2.31. Previously, we have initiated the stock with HOLD when the share price was trading at S$2.09. With the more attractive current share price of S$1.97, investors who are more bullish on the stock may want to do a trading buy to take advantage of the share price weakness. However, we believe that the fundamentals remain, and this price weakness may be only short term, consequent to the share sale which has shaken unitholders’ confidence. Therefore, we maintain HOLD on the stock with a fair value of S$2.31.

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