News

28 August 2003, Singapore - Ascendas-MGM Funds Management Limited, the manager ("Manager") of Ascendas Real Estate Investment Trust ("A-REIT") is pleased to announce details of interest rate hedging transactions entered into by Bermuda Trust (Singapore) Limited (as trustee of A-REIT) (the "Trustee"). The transactions have been entered into by the Trustee to provide fixed rate funding exposure in relation to A-REIT's underlying bank debt. As at 30 June 2003, A-REIT had borrowings of S$133.5 million from existing bank facilities.

A-REIT has entered into S$100 million of forward start swap transactions that coincide with future interest rate rollovers on 22 September 2003 and 19 November 2003. The weighted average swap rate is 1.99 per cent and the terms are for periods of 2 years to 3 years.

Based on the current floating rates on unhedged debt, A-REIT's current weighted average funding cost is 1.75 per cent (excluding margins).

The swap transactions undertaken represent approximately 75 per cent of A-REIT's borrowings as at 30 June 2003.

A-REIT is the first business space and light industrial REIT listed on the SGX-ST. Including the OSIM HQ Building acquired on 20 June 2003, it has a diversified portfolio of nine properties comprising business park (including science park), light industrial and built-to-suit properties in Singapore, valued at approximately S$644.2 million (as at 20 June 2003). These properties house a tenant base of over 300 international and local companies operating in a range of industries and activities, including research and development, life sciences, information technology, engineering and light manufacturing. Tenants include Biopharmaceutical Manufacturing Technology Centre, Federal Express, Honeywell, Lilly Systems Biology, OSIM International, Teradyne and Venture Corporation, just to name a few. The rental income from the tenants contributes to the stable distributions to be delivered by A-REIT.

A-REIT is managed by Ascendas-MGM Funds Management Limited, a joint venture between Singapore-based Ascendas Investment Pte Ltd, a related company of Ascendas Land (Singapore) Pte Ltd, and Australian-based Macquarie Goodman Industrial Management Pty Limited.

For enquiries, please contact:

Ho Mei Peng
Investor Relations
Ascendas-MGM Funds Management Ltd
Tel: +65 6774 9152
Mobile: +65 9668 8290
Email: meipeng.ho@ascendas-mgm.com

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