Singapore –JTC Corporation (“JTC”) today announced that it will be divesting a selected portfolio of high-rise ready-built properties to Mapletree Investments Pte Ltd (“Mapletree”) for a total consideration of S$1.71 billion. This divestment option was part of Mapletree’s proposal to JTC, when Mapletree was appointed by JTC as the real estate investment trust (REIT) manager for the selected portfolio in February this year.

JTC and Mapletree announced that based on the advice of the REIT financial advisors (DBS Bank, Goldman Sachs and UBS AG), they will not be proceeding with the proposed listing of the portfolio of properties via a REIT at the present time. This is in light of the current volatile market conditions which are not conducive for a REIT initial public offering (IPO). Instead, JTC will divest the portfolio of properties to a private trust sponsored by Mapletree.

The properties to be divested comprise 39 blocks of flatted factories, 12 amenity centres, six stack-up and one ramp-up buildings, three multi-tenanted business park buildings (the Synergy & the Strategy at the International Business Park and the Signature at the Changi Business Park) and one warehouse building. The transfer of properties to Mapletree is expected to be completed by 1 July 2008. Details of the properties to be divested are in Annex A.

Mrs Ow Foong Pheng, Chief Executive Officer of JTC, said, “Since the appointment of Mapletree as the REIT manager in February, the global and local capital markets have continued to remain volatile. The backstop option in Mapletree’s proposal to buy the properties at a total consideration of $1.71 billion is very attractive. With the divestment of properties to Mapletree, we are confident that our customers will stand to benefit from Mapletree’s strong track record in the industrial property sector and its local and international expertise.”

Mr Hiew Yoon Khong, Chief Executive Officer of Mapletree said, “We are happy to be presented with the opportunity to acquire this portfolio. The properties are attractive and well-diversified in terms of tenancy, location and asset type. This acquisition will allow us to scale up our real estate fund management business significantly.”

He added: “Mapletree will explore the possibility of listing the portfolio as a REIT, possibly in combination with other Mapletree industrial assets in due course. We believe that this is an excellent portfolio to be potentially offered to investors as a yield-based investment product. Meanwhile, our immediate focus will be to ensure a smooth transition for tenants and we look forward to working closely with them in the near future.”

The divestment of properties to Mapletree is part of JTC’s overall divestment exercise to promote competitiveness and vibrancy in the industrial property market. The divestment will also enable JTC to focus on being a strategic infrastructure provider to support Singapore’s economic growth and position Singapore as the choice investment location.

Annex A – List of properties divested to Mapletree