• Maximises returns on investment and diversifies income portfolio for Sime Darby Property
• CapitaMalls Asia s entry into greenfield developments in Malaysia

Kuala Lumpur, 9 May 2012  Sime Darby Property, Malaysia's largest property developer in terms of landbank, and CapitaMalls Asia Limited (SGX: JS8 and HKEx: 6813), Asia s leading shopping mall developer, owner and manager, are pleased to announce today that they have entered into a conditional agreement to form a 50:50 joint venture to develop a shopping mall on a freehold site in Taman Melawati in the Klang Valley, Malaysia.

The site has an area of about 242,000 square feet (sq ft). It is located in the centre of Melawati township and is the last sizeable plot of commercial land in the township. The township includes Taman Melawati, an established and affluent residential district northeast of Kuala Lumpur city centre and the Klang Valley. It is bounded by the established residential areas of Taman Melati, Wangsa Maju, Taman Permata and Kemensah Heights. The site is also near one of the most established international schools in Kuala Lumpur, as well as popular tourist destinations such as Batu Caves and the National Zoo.

CapitaMalls Asia and Sime Darby Property will develop a shopping mall with a total net lettable area (NLA) of approximately 635,000 sq ft on the site. The shopping mall is expected to be completed in 2016, and will serve a catchment population of around 800,000 people within a 10-minute drive. The total development cost is expected to be about RM500.0 million (S$204.5million / HK$1,279.8 million).

Dato' Wahab Maskan, Group Chief Operating Officer of Sime Darby Berhad and Managing Director of Sime Darby Property, said: We are confident that our partnership with CapitaMalls Asia to develop this site in Taman Melawati is the best strategy to maximise the returns on our investment and diversify our income portfolio. The synergistic partnership with CapitaMallsAsia provides us the platform to leverage on their experience as the leading shopping mall developer, owner and manager in Asia.

When this commercial development is completed, it is expected to be a catalyst to enhance the overall value of properties within its vicinity. This, in turn, bodes well for our current and upcoming property projects in this area, he added.

Sime Darby Property has several on-going as well as future projects planned in the Melawati township including Gaya Apartments, Casa Rimba (superlink homes), 3 Residen (condominiums), Quarza (service apartments), bungalows, town villas, and an office building. These projects will help promote Melawati as a commercial hub of the area.

Mr Lim Beng Chee, CEO of CapitaMalls Asia said: We are pleased to partner Sime Darby Property to jointly develop this site in Taman Melawati. Sime Darby Property has extensive experience in property development in Malaysia. On our part, CapitaMalls Asia will bring our proven expertise in developing and managing shopping malls around the region.

This project marks our first greenfield development in Malaysia. It will be the first major shopping mall in the established and affluent residential district of Taman Melawati, and will cater to the under-served retail needs of the residents there as well as the surrounding neighbourhoods. It will also provide both Malaysian and international retailers the opportunity to expand their presence to an established residential district in the Klang Valley.

This development will be CapitaMalls Asia s sixth mall in Malaysia. CapitaMalls Asia currently owns Queensbay Mall in Penang and, through its stake in CapitaMalls Malaysia Trust, owns Gurney Plaza in Penang, a majority interest in Sungei Wang Plaza in Kuala Lumpur, The Mines in Selangor and East Coast Mall in Kuantan.