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29 July

2012 NEWS RELEASE CapitaMalls Asia to develop its first shopping mall in Qingdao Located in the heart of the New Urban Center C a new commercial, administrative, residential, cultural and ecological zone Directly linked to Qingdao'

s first subway line and well-served by several main trunk roads Singapore, Hong Kong and Beijing,

29 July

2012 - CapitaMalls Asia Limited (SGX: JS8 and HKEx: 6813) is pleased to announce today that it is developing its first shopping mall in Qingdao, China.

CapitaMalls Asia has signed a conditional agreement to acquire the site for the shopping mall at the junction of Heilongjiang Road and Hefei Road in Sifang District in Qingdao. It is acquiring the site from Qingdao Vanke City Real Estate Co. Ltd and Qingdao Shuangshan Gongmao Co. Ltd. Qingdao Vanke is a majority-owned subsidiary of Vanke Real Estate Group Co. Ltd, the largest professional housing developer in China with sales revenue of RMB121.5 billion (S$24.6 billion / HK$149.2 billion) in 2011, and is listed on the Shenzhen Stock Exchange. Qingdao Shuangshan is a local enterprise primarily engaged in the businesses of commodity trading, small-scale warehousing and agri-mart management. The proposed mall will be the retail component of Vanke City, a mixed development strategically located in the New Urban Center ( NUC , 新都心) in the centre of Qingdao. The NUC is a new commercial, administrative, residential and cultural zone. It will comprise the district government administrative centre, mid- to high-end residences, an industrial park and commercial facilities including retail, office and hotel.

2 The proposed shopping mall will be the first mall in NUC, with a population catchment within a

5 kilometre ( km ) radius that is expected to reach 550,000 residents by 2015. Qingdao'

s first subway Line M3, which will be operational in 2014, will run through NUC and be directly linked to the basement of the shopping mall. Subject to planning approval, CapitaMalls Asia plans to develop a six-storey shopping mall with a total gross floor area ( GFA ), excluding car park, of about 89,700 square metres ( sq m ). When completed in 2015, the proposed mall will house popular international and local fashion brands, a supermarket, good quality restaurants, thematic food concepts, children-related specialties and a modern lifestyle cineplex to cater to the needs of young families and the middle- to high-income working class. The mall will also have about

900 car park spaces. Including land cost, the total development cost of the shopping mall is expected to be about RMB1,457.0 million (S$294.9 million / HK$1,788.9 million), or about RMB16,235 (S$3,286 / HK$19,933) per sq m of GFA. Mr Lim Beng Chee, CEO of CapitaMalls Asia, said: Qingdao is one of the largest seaports of the Bohai Economic Rim and Northeast Asia Economic Zone. It is also the biggest container port in North China and the economic centre of Shandong Province. This provides a huge economic hinterland to support the continued strong growth of Qingdao. Qingdao'

s GDP has grown steadily at an average annual rate of 13.2% over the past five years. Its per capita urban disposable income grew 14.3% while total retail sales posted an increase of 17.4% year-on-year last year, slightly above the national average growth rate of 17.1%. With Qingdao'

s strong economic fundamentals, we are confident about the retail growth prospects in the city. Currently, there is a lack of well-managed and organised retail in Qingdao, especially in and around the NUC. With our expertise in mall management and strong leasing network, we will develop a landmark one-stop shopping destination that meets the lifestyle needs and aspirations of the community and offers quality space for retailers keen to expand in this growing city. Including this mall, we now have seven malls1 in North-east China. This acquisition is in line with our strategy to expand our footprint in China and strengthen our presence in the cities and regions we are already in. With its bustling port and close proximity to Japan and South Korea, Qingdao attracts strong international trade and foreign direct investment. More than