News

Singapore, 27 January 2003 - Ascendas-MGM Funds Management Limited, the manager of Ascendas Real Estate Investment Trust (A-REIT) is pleased to provide the following A-REIT portfolio update in the period to December 2002. A total of 24,400 sq m of business and industrial space, representing almost 10% of the net lettable area in A-REIT's portfolio of properties, has been leased or renewed. In December 2002, the average occupancy rate across the A-REIT's properties was 83.9% which is above the forecast of 82.5% for the five months average ending 31 March 03 stated in the A-REIT's Prospectus. (Please see Appendix for breakdown by properties).

The committed leases for financial year 2004 have also increased from 67%, stated in the A-REIT's Prospectus to the current 80%.

Approximately 4,300 sq m of the newly leased space has been committed at rental rates at or above the forecast stated in A-REIT's Prospectus. The annual rental value of the new leases amounts to S$0.997 million compared to forecast stated in the A-REIT's Prospectus of S$0.664 million for take-up of the same space.

In the same period, leases covering a total of 20,100 sq m of space were renewed, with a total annualised rental of S$5.218 million versus a forecast of S$4.952 million for the same space.

The average gross rentals of the new leases and renewals in business space (science park), hi-tech industrial space and industrial space are S$28.17 per sq m per month, S$23.76 and S$15.77 per sq m per month respectively.

Mr Goh Kok Huat, Chief Executive Officer of Ascendas-MGM Funds Management Limited, manager of A-REIT said, "We have been actively managing A-REIT's portfolio to deliver sustainable income growth for our Unitholders. A-REIT has been listed for a short two months since 19 November 2002 and we are pleased that on a portfolio basis, we have signed on new leases and successfully obtained renewals including some tenants that were forecast to have terminated their leases. This could be attributed to the strategic location of our properties which continue to attract demand despite the current environment. The rental rates of the new leases and renewals committed are in line with the forecasts in A-REIT's Prospectus. Consequently, we are confident of delivering the distribution forecasts outlined in A-REIT's Prospectus. We will continue to look for growth opportunities to increase our yields to our Unitholders."

New tenants that have committed include Sakura Tech, a manufacturer of plastic and rubber products, which leased 653 sq m in Techplace II and Procter & Gamble, a company in healthcare research, which leased 246 sq m of space in the Alpha of Singapore Science Park II; Federal Express, an existing tenant of Techlink has taken up an additional 479 sq m of space for its telecommunications and data centre activity.

The tenants that have renewed their space include: Bioprocessing Technology Centre in the Gemini of Singapore Science Park; National Starch & Chemical in the Alpha of Singapore Science Park; Mykrolis Singapore in Techlink; Mappin Singapore, Swann Industries, Chartered Electronics in Techplace I; Manufacturing Integration Technology, Ebert Electronics, Venture Corporation and Kinergy Pte Ltd in Techplace II.

A-REIT's financial results for five months ending 31 March 2003 will be announced shortly after its financial year end.

A-REIT is the first business space and light industrial REIT listed on the Singapore Exchange. It has a diversified portfolio of eight properties comprising business park (including science park), light industrial and built-to-suit properties in Singapore, valued at approximately S$607.5 million (as at 31 March 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 Bioprocessing Technology Centre, Federal Express, Honeywell, Institute of Microelectronics, Lilly Systems Biology, 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 more information, please visit our website: www.a-reit.com
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This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses, including employee wages, benefits and training, property expenses and governmental and public policy changes. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events.