Mapletree Scales Up Logistics Pipeline With New Logistics Parks In China’s Tianjin Port And Vietnam’s Bac Ninh Province

Mapletree Scales Up Logistics Pipeline With New Logistics Parks In China’s Tianjin Port And Vietnam’s Bac Ninh Province

Singapore – Mapletree Investments Pte Ltd (“Mapletree”) today announced that it has entered into a joint venture with a leading Tianjin port operator, Tianjin Port Development Holdings Limited (“TPD”), which is listed on the Hong Kong Stock Exchange, to develop an approximately 64 ha logistics park in the Dongjiang Bonded Harbour Area in Tianjin Port, China. Separately, Mapletree also announced that it has signed a non-binding Letter of Intent (“LOI”) with the Vietnam Singapore Industrial Park Pte JV Co Limited (“VSIP JV”) to acquire about 70-ha of land within the Vietnam-Singapore Industrial Park Bac Ninh (“VSIP BN”) near Hanoi, Vietnam to develop a logistics park.

These announcements mark Mapletree’s third logistics development in Vietnam and its fourth in China, underscoring the importance of these two countries in Mapletree’s regional focus.

Mr Hiew Yoon Khong, CEO of Mapletree said, “Both China and Vietnam are very important markets for us. The logistics sector in both countries is experiencing strong growth in tandem with their economic performances. In 2006, China’s annual GDP growth at 10.7% was the highest in Asia, while Vietnam’s annual GDP growth at 8.2%, made it the highest in South East Asia and the second highest in Asia. As a regional real estate player, we are constantly looking for opportunities to invest into real estate sectors that will benefit from these growth prospects. On the logistics real estate sector, we intend to continue expanding our presence in key manufacturing, port and airport hubs across Asia.”

He added, “We are pleased to partner TPD, one of the main port operators in Tianjin Port, to develop the first bonded logistics park in the Dongjiang Bonded Harbour Area, as well as collaborate with VSIP JV yet again on our third logistics development project in Vietnam. These two projects will further entrench us as a leading player in servicing the real estate needs of the logistics sector in both the Tianjin area and Vietnam.”

Mr Hiew further added, “As the sponsor of Mapletree Logistics Trust, Mapletree is committed to build up the pipeline of new logistics assets which will be offered to the Trust when completed. This is especially important in emerging markets where the supply of such completed investment grade assets is still insufficient. These two new projects in Tianjin and Hanoi will add onto the six existing development projects that Mapletree is developing in China, Vietnam and Malaysia; and we will continue to scale up this pipeline with new projects.”

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About the Logistics Park at Tianjin Port

Mapletree will undertake the development and management of the logistics park at Tianjin Port through a 49% stake in a joint venture company (“JV Co”) with Tianjin Port Development Holdings Limited. This project marks Mapletree’s second logistics development project in Tianjin, after the Tianjin International Airport Logistics Zone (TAILZ) at Tianjin Binhai International Airport, which is currently under development.

The logistics park in Tianjin Port will have a land area of approximately 64 ha with a total Gross Floor Area (“GFA”) of about 577,000 square metres of warehouse space. It will be developed in four phases with Phase 1 of about 191,000 square metres of warehouse space targeted for completion by the end of first quarter of 2008.

Tianjin has the largest industrial base and logistics hub in the Bohai Bay Area in Northern China. With the largest port in North China, the city acts as the principal import and export gateway for the northern hinterlands of China. Dongjiang Bonded Harbour Area, located within Tianjin Port, will have the largest international free trade zone in China.

The logistics park is strategically located within the Dongjiang Bonded Harbour Area of Tianjin Port. Some 22 blocks of single storey and 12 blocks of two-storey ramp-up warehouses with a total GFA of 577,000 square metres are planned within the park.

The park will be developed in four phases. Phase 1 with four blocks of single storey and six blocks of double storey warehouses and a total GFA of 191, 000 square metres, will be completed before the end of 1Q2008. The entire logistics park is projected to be completed by 2011.

This is the fourth logistics development project in China undertaken by Mapletree after the first three at Yangshan Deep Sea Port, Wuxi and Tianjin Airport. In addition, Mapletree Logistics Trust, sponsored by Mapletree, has also completed or is in the process of completing the acquisition of four logistics facilities in Shanghai, Xian and Guangzhou.

About the Proposed Logistics Park in Hanoi

The proposed logistics park in Bac Ninh Province will have a free trade zone, an inland container depot, and a non-free trade zone area. The logistic park will house both build-to-suit and multi-tenanted logistics facilities. Based on preliminary plans, some 370,000 square metres of logistics space can be accommodated within the park. The park is located about 20km from Hanoi City and is easily accessible from the capital city centre, seaport, airport as well as being in close proximity to the border between Vietnam with China.

Vietnam’s GDP is expected to grow at more than 8% per year up to the 2010. In addition, it offers itself as a low cost alternative for multi-national companies seeking manufacturing locations in Asia. Hanoi has a well established manufacturing base with many multi-national companies’ operations already present. To support this growth in the manufacturing areas, there is an increasing outsourcing trend for logistics services, which is currently still in the nascent stage. As more professional third party logistics players enter the Vietnamese markets, the demand for better designed and well managed logistics facilities is growing.

This logistics park in VSIP Bac Ninh will be Mapletree’s third logistics development in Vietnam, after the Mapletree Logistics Centre at VSIP 1 and the 56 ha Mapletree Logistics Park at the VSIP 2, both at Binh Duong Province near Ho Chi Minh City.

About VSIP JV Co Limited

Formed by Becamex Corporation, a state-owned company, and a consortium of Singapore companies led by SembCorp Parks, the VSIP JV Co Limited’s portfolio include the 500-hectare Vietnam Singapore Industrial Park (VSIP) located in the Binh Duong Province of Vietnam.

Established since 1996, VSIP has accelerated and progressed rapidly to a widely-recognized manufacturing estate home to many international manufacturers. The strong commitment and support from both Vietnam and Singapore governments have also facilitated VSIP’s unparalleled status in Asia.

About Tianjin Port Development Holdings Limited

Tianjin Port Development is currently one of the dominant port operators at the port of Tianjin, the fifth largest port in China. The Group first began its non-containerised stevedoring business in 1968 and container handling business in 1980 in the port of Tianjin. The Group’s businesses are in port services, including the loading and unloading of containerized and non-containerised cargo from shipping vessels, the stacking and warehousing of containers and cargo, as well as various ancillary services. The Group currently owns and operates two terminals and five containers and seven non-containerised cargo berths with a combined quay lengths of 3,049 metres with annual container and non-containerised capacity of 1.92 million TEUs and 18 million tonnes respectively.