General Announcement::PROPOSED PARTICIPATION IN A STRATEGIC STAKE IN KAILONG CHINA REIT

Issuer & Securities

Issuer/ Manager
SINARMAS LAND LIMITED
Securities
SINARMAS LAND LIMITED - SG1E97853881 - A26
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
08-Jun-2015 19:05:36
Status
New
Announcement Sub Title
PROPOSED PARTICIPATION IN A STRATEGIC STAKE IN KAILONG CHINA REIT
Announcement Reference
SG150608OTHRRIOF
Submitted By (Co./ Ind. Name)
Kimberley Lye Chor Mei
Designation
Company Secretary
Description (Please provide a detailed description of the event in the box below)
PROPOSED PARTICIPATION IN A STRATEGIC STAKE IN KAILONG CHINA REIT, A REAL ESTATE INVESTMENT TRUST PROPOSED TO BE ESTABLISHED AND LISTED ON THE SINGAPORE EXCHANGE SECURITIES TRADING LIMITED

1. INTRODUCTION

The Board of Directors of Sinarmas Land Limited ("SML") wishes to announce that SML has been invited by KaiLong Holdings Limited ("KLR") to participate in the proposed listing and offering (the "Proposed Listing and Offering") of units in KaiLong China Real Estate Investment Trust ("KaiLong China REIT"), a real estate investment trust to be established in Singapore, on the Singapore Exchange Securities Trading Limited (the "SGX-ST"). In this connection, SML has on 7 June 2015 entered into a non-binding heads of terms ("HoT") with KLR in relation to the participation by SML of a strategic stake in KaiLong China REIT, as well as its manager and property manager (the "Proposed Participation").

2. INFORMATION ON KLR AND KAILONG CHINA REIT

KLR is a company incorporated in the Cayman Islands and having its registered address at Floor 4, Willow House, Cricket Square, P O Box 2804, Grand Cayman KY1-1112, Cayman Islands. As at the date hereof, KLR's principal activity is investment holding.

KLR proposes to establish KaiLong China REIT in connection with the Proposed Listing and Offering. It is envisaged that the initial portfolio of KaiLong China REIT will comprise seven (7) business space properties in Shanghai and one (1) office building in Chengdu (the "Properties"), in the People's Republic of China (the "PRC"). KLR will be the sponsor of KaiLong China REIT.

3. RATIONALE FOR THE PROPOSED PARTICIPATION

The Proposed Participation aims to allow SML to leverage on the relatively high rates of return on completed and stabilised business space properties in the PRC, and provide SML with a diversified and stable income stream.

4. INTERESTS OF DIRECTORS AND CONTROLLING SHAREHOLDERS

None of the Directors or controlling shareholders of SML has any interest, direct or indirect, in the HoT, save through their respective shareholdings, if any, in SML.

5. FURTHER ANNOUNCEMENTS

SML will make further announcements (including the information required under Chapter 10 of the Listing Manual of the SGX-ST) upon the finalisation and execution of a definitive agreement and/or when there are any material developments in respect of the HoT or the Proposed Participation.

6. TRADING CAUTION

Shareholders are advised to exercise caution in dealing with SML's securities and to refrain from taking any action in respect of their securities which may be prejudicial to their interests, as there is no certainty or assurance as at the date of this announcement that a definitive agreement in respect of the Proposed Participation will be entered into on the terms and conditions set out in the HoT or that the Proposed Participation will be undertaken at all.

Shareholders and investors are advised to read this announcement and any further announcements by SML carefully. Shareholders should consult their stockbrokers, bank managers, solicitors or other professional advisers if they have any doubt about the actions they should take.

By Order of the Board
SINARMAS LAND LIMITED

Robin Ng Cheng Jiet
Director
8 June 2015