KHAZANAH AND TEMASEK TO DEVELOP LAND IN SINGAPORE AND ISKANDAR MALAYSIA

KUALA LUMPUR (Bernama) - Khazanah Nasional Bhd and Temasek
Holdings (Private) Ltd will establish joint venture companies, M+S Pte Ltd
and Pulau Indah Ventures Sdn Bhd, to respectively develop land parcels in
Singapore and undertake projects in Iskandar Malaysia in Johor state.

These joint developments were supported by Malaysian Prime Minister Najib
Razak and his Singapore counterpart Lee Hsien Loong in their Joint Statements of
May 24, 2010, June 22, 2010, September 20, 2010 and June 27, 2011, a statement
from Khazanah and Temasek said here Thursday.

Owned 60:40 by Khazanah and Temasek respectively, M+S will develop four land
parcels in Marina South and two land parcels in Ophir Rochor, each as an
integrated development.

An indirect wholly-owned subsidiary of UEM Land Holdings Bhd, a real estate
company within Khazanah’s portfolio, and an indirect wholly-owned subsidiary of
Mapletree Investments Pte Ltd (Mapletree), a Temasek portfolio company, have
been appointed to oversee the marketing and development of the project at Marina
South, said the joint Khazanah and Temasek statement.

For the Ophir-Rochor site, UEM Land and an indirect wholly-owned subsidiary
of CapitaLand Limited, another Temasek portfolio company, have been appointed to
oversee the marketing and development, they said.

Khazanah and Temasek are both committed to the successful commercialisation
of these land parcels, which will include office, residential, hotel and retail
components.

The gross development value of the project with a permitted gross floor area
(Permitted GFA) of up to 501,020 sqm is estimated at approximately S$11 billion
(RM27 billion), subject to design and development plans.

Meanwhile, Pulau Indah, a 50:50 joint venture between Khazanah and Temasek,
will develop projects in Iskandar Malaysia in Johor.

Khazanah and Temasek have worked together since last May to identify
suitable sites in Iskandar Malaysia for joint commercial development.

Two sites, one in Medini North and the other at the Heritage Cluster in
Medini Central, have been confirmed, they said.

Pulau Indah intends to develop serviced apartments, a corporate training
centre, and commercial, retail, residential and wellness-related offerings on
these sites, they said.

Khazanah and Temasek are currently in discussions and negotiations with
potential partners and operators for the various components to maximize the
commercial potential of the location.

The gross development value of the Iskandar project with a Permitted GFA of
up to 1,365,675 sqm is estimated at approximately RM3 billion, subject to design
and development plans.

Planning and design works for the projects had commenced in first quarter of
2011.

With the signing of these agreements Thursday, the projects will move
towards design and further implementation and delivery of the initial phases
over the next five years.

Khazanah’s Managing Director, Azman Mokhtar, said: “We are honoured
to be undertaking these exciting developments at these key sites in Singapore
and Iskandar Malaysia with our counterparts from Singapore, Temasek Holdings."

The development in Iskandar with Temasek will be highly complementary and
builds on the momentum of existing and planned projects in Iskandar Malaysia, in
which Khazanah has been involved since 2006.