ACRJ One increases share capital to S$1,000

CSML now holds 30% interest and AJI holds 70% interest in ACRJ1

CapitaLand Limited (“CapitaLand”) wishes to announce that ACRJ One Pte. Ltd. (“ACRJ1”) has increased its issued and paid-up share capital from S$1 to S$1,000 (comprising 1,000 ordinary shares) (the “Share Increase”) by allotting 299 ordinary shares for cash consideration of S$299 to its existing sole shareholder, CapitaLand Singapore Management Limited (“CSML”) and 700 ordinary shares for cash consideration of S$700 to ArcResidential Japan Investments Limited (“AJI”). ACRJ1 and CSML are wholly-owned subsidiaries of CapitaLand and AJI is an unrelated party, according to a CapitaLand report.

Following the Share Increase, CSML holds 30% interest (representing 300 ordinary shares) (the “300 Shares”) and AJI holds 70% interest (representing 700 ordinary shares) in ACRJ1. ACRJ1 and its wholly-owned subsidiary, ACRJ One Investments Pte. Ltd. (“ACRJ1I”) are therefore associated companies of CapitaLand.

ACRJ1 was incorporated as part of the restructuring of ARC-CapitaLand Residences Japan Private Limited (“ACRJ”) to hold certain assets in Japan transferred from ACRJ. ACRJ is 30% owned by CSML in trust for CRL Investment Pte Ltd (“CI”) and GPH Investments Pte Ltd (“GI”) in the proportions of 17/27 and 10/27, respectively (the “Agreed Proportions”), and 70% owned by AJI. CI is a wholly-owned subsidiary of CapitaLand and GI is an unrelated party. CSML will enter into a trust deed (the “Trust Deed”) with CI and GI, pursuant to which, CSML will hold the 300 Shares in trust for CI and GI, in the Agreed Proportions. The economic interests of all the aforementioned parties in the investments in Japan held through ACRJ and ACRJ1 remain unchanged after the restructuring.

Upon execution of the Trust Deed, CapitaLand’s beneficial interest in ACRJ1 will be reduced from 30% to 18.89% (equivalent to 17/27 of 30%). ACRJ1 and ACRJ1I will cease to be associated companies of CapitaLand. The carrying value for the reduction from the original interest of 100% to 18.89%, based on the management accounts of ACRJ1 as at 31 July 2010 is ¥1.3 billion (approximately S$20 million).